The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-04-15

q partf Anu III on part - III on tne
amount above $4,000 or above $500?
You must pay tax on the $500, providing
IL was not derived from sources exem pit
under the statute, OF from rents or inter-
est on state, county or municipal bonds
The law exempts from tax 81 900 out of
What is the s.. 500 provision of which 1
have heard2 ~.
Persons receiving over $500, computed
on the basis prescribed In the law. must
file statements of the same.
Where do file them? =.
With the internal revenue collector.
What will happen if do not file state
ment? ~.
The collector or his deputy will esti-
mate your income from such testimony as
he can get. Then he will find the tax you
would have paid on the estimated income
and add 30 per cent. to IL. For instance,
IL he found that you had received $1,000
above exemptions he would charge you
with $40-tax on 5000 not exempt-and
add $50 penalty, making your tax $50.
What is the penalty for false sreturn7
The collector is required to make true
turn and double the tax on this. In the
above case the penalty would be $40 and
the total tax $50. The ordinary criminal
penalties for perjury could of course be
inflicted in addition.
When is the tax due? ~
1t must be paid before July LIST. -
What will happen If do not pay before
that time?
The collector must add five per cent TO
any sum due and unpaid after the first
day of July, and for ten days after notice
and demand thereof by the collector, and
- A.
tax is paid. z.
from other sources. What is to be deduct
ed from the total receipts?
You are entitled to deduct income from
rents; from bonds of the nation, state,
county Or municipality; taxes paid to the
nation, state, county or municipality
within the year (but not including any as
sessed against local benefits); the neces-
sary expenses actually incurred in rum
ming your business, occupation or, profess
sion; interest due and paid on existing
indebtedness; losses actually sustained
during the year in trade or from fire,
storms or shipwrecks, and not compen-
stated for by insurance or otherwiee; debts
ascertained to be worthless; also sums
received from corporations that are re-
quired to pay the tax before dividing prof.
its. You may not deduct estimated de-
probation of values or losses within the
year on real estate purchased within two
years. Nor may you deduct any amount
paid out for new buildings, improvements
or betterments.
Is my wife's income, say 50 900, exempt?
No. Only one deduction of $4,000 is al
lowed for one family. Your income, the
income of your wife and the income of
your minor children, If any, are Jumped
together and the $4,000 is deducted from
the total. EE
Suppose the supreme court finally de-
clares the whole tax unconstitutional,
would not be safe in ignoring the col
lector and refusi ng TO make statement
or to pay the tax? 90
You would be all right then. You must
judge OF the risk for yourself. You can
estimate the penalties and decide whether
it is worth your while to lay yourself liable
to them. In the case suggested above the
citizen would lose $50 for not making the
statement, 50 more for not paying, before
July i, per cent. n month as long as 1t
remained unpaid and the costs of collec-
tion-provided the law was sustained. If
the law were overthrown he would save
$40.
How can I protect myself to save my
money IL the tax is overthrow and escape
the penalties il 1t is sustained?
File the statement demanded by law
and pay the tax under protest.