The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-09-30
FOLKS WITH $4,000
must NOW PREPARE
| To PAY INCOME TAX
It Behooves Them All to Read
Instructions and Find Out
How it should be Done
Married Men Allowed Addi-
tional $1,000 Exemption,
Congress Taking This Means
of Taxing Bachelors---Hull
Issues Statement Meant to
Help

WASHINGTON, Sept 29.--1t now
behooves folks with an income Of more
than $4,000 a year TO lay a hand upon
a furrowed brow, and try 10 find out
how they are going TO pay Sie income
tax to the government, and what Will
happen to them If they do not.
The matter has been hanging fire
for a long time. but now that the con-
ference committee Of thu senate and
house has reached the income tax fea-
ture of the tariff bill In It's final form.
it will be up to everybody--that Is
above ss,00o---to master the details.
Representative Cordell Hull. of Ten
nessee. who framed the income tax
bill, issued statement tonight intend
ed to help some, and the Internal
revenue bureau~of the treasury depart
ment Is already at work on set df
instructions. which 1t will issue later.
In the first place the law about to
go into effect includes within its scope
all citizens of the United tSates re-
siding at home or abroad; all persons
residing In the United States, though
not citizens thereof. and all net in
comes from property and business
owned or carried on in the United
States by aliens.
The Reductions.
In every case a deduction OF $4,000
is allowed for living expenses. In
tho case of husband who is living
with hts wife, or a wife who is living
with her husband an addiA onal 81, 600
exemption is allowed. so That all told
married person is entitled to an
exemption of 81 600. Only one $4,000
deduction. however. IS ~ re allowed
from the aggregate income Of both
husband and wife,
The income tax law will go into
effect as soon as ii In signed, and under
ordinary circumstances. incomes are to
be computed from the calendar year.
In the case Of the present year, how
ever. the tax is tn pe&com puted only
for that portion of the income ac-
cruing from March Ist to December
3lst next.
The treasury department is prepar-
ing blank forms which will be dis
trihuted by the district internal reve-
nue. collectors to each taxable person
Any taxpayer who fails to make a
return on or before March LIST, will
be liable to a penalty of not less than
$50, nor more than 81 1000. II his re-
turn II fraudulent, II will be a mis-
demeanor, ard he will he subject to a
fine of $4,000 or Imprisonment for
one year. or both.
Each taxpayer win be notified by
the internal revenue commissioner by
June /. 1914, of the amount of the
tax due from him. and the payment
must be made by June 30th. follow
ing,
Appeals Allowed.
In the event Of disagreement be-
tween the collector and the taxpayer
the latter may carry the case. with
papers and proof, TO the commssi oner
of internal revenue. but his decision
win be final.
Under the terms of the bill In its
final form, the net income of each
individual taxpayer Is to include the
following items:
All gains, profits, and incomes de-
rived from salaries, wages, or com
pensatiEn for personal services OF
any professions, or vocations, bust
ness, trade, or commerce, sales oil
dealings in property, real or personal
interest, rent. dividends. and securi
ties. Also the gains and profits from
any transactions of lawful business
! {Contioned on Second Page.