The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-09-30
INCOME TAX HAS
VERY WIDE SCOPE
Every Person With Net Income
Exceeding $4,000 a Year
Is Taxable.
DODGERS TO BE PUNISHED
Government Requires That All,
Of the Returns Be Made
Under Oath.


more than $4,000 a year to lay a hand
upon furrowed brow and try to find
out how they are going to pay the in
come tax to the Government and what
will happen to them II they do not.
The matter has been hanging fire for
long time, but now that the conference
committee OF the Senate and House has
reached the income tax feature of the
tarir bill in its final form 1t will rest
with everybody having more than the
$4,000 limit to master the details
Representative Cordeil Hull Of Tenncs-
see. who framed the income tax bill, is-
sued statement tonight intended to
help the taxable persons. and the in
ternal revenue bureau of the Treasury
Department Ia already at work on a set
of instructions which will be issued later.
EAtrmt Of the Law.
Ia the first place the law, about to go
into effect includes tithin its scope al,
citizens of the United States residing at
home or abroad. all persons living in the
United States. though not citizens there
and business owned or carried on in the
United States by aliens.
In every case deduction of $4,000
is allowed for living expenses. In the
case Of a husband who is living with his
wife or a wife who is living with her
husband an additional 81 900 exemption is
allowed. 40 that all told a married person
is entitled to All exemption Of $4,000.
.l.l.
to he allowed from the aggregate income
OF both husband and wife.
The income tax law will 60 into effect
as soon as It is signed. and under
ordinary circumstances incomes are to bo
computed for the calendar year In the
case Of the present year. however, the
tax is TO he computed only on that por-
tion of the income accruing from March /
to December ~ next.
The Treasury Department, is preparing
blank forms which will be distributed by
the district internal revenue collectors to
each taxable person. II you fail to get
such blank YOU are required under a
penalty to apply TO tho collector or his
deputy for one.
Bianks will be on deposit with postmas-
ters for the convenience Of Taxpayers.
rNerN tANdpIe person IL 10 MI out anu re-
turn one OF these blanks to the internal
revenue collector OF his district before
January | and March ! next,
Statement nder Oath.
The taxpayer must nll out under oa h
4 true AMI, accurate. S.at7sreps ,9f his ~,
come OF $4,000 or more for the calendar
year. This return shall set forth specif-
cally the gross amount OF income from all
separat" sources and from this total shall
be deducted IN" aggregate items of the
expenses and allowances authorized under
the law.
Any taxpayer who fails to make a re-
turn on or before Marah 1 will be liable
to penalty OF not less than $40 nor more
than $1,000. II his return is fraudulent
Il will be misdemeanor and he will be
subject to fine Of $4,000 or imprison-
ment for one year. or both
Each taxpayer will 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 hy
June 80 following. In the event of failure
to pay the tax by June 80 and after ten
days further notice, per cent. will be
added to the amount OF the tax and in
terest at the rate OF per cent, month
from the time the tax falls due.
Exceptions are made In regard to pen-
alties in the cases OF incomes from the es.
tatcs OF insane, deceased or insol>ent
persons.
Prov isiOn for Neglect.
In the case OF neglect or refusal 10
make returns. or in n case OF false re-
turns the commissioner OF Internal reve-
nue. may make such return himself any
time within three years Of the date when
the return was due.
The collector Of internal revenue may
increase the amount Of any return II ne
understated. but he In obliged to serve
due notice and to produce evidence.
In the event Of disagreement between
the collector and the taxpayer. the latter
may carry the case with papers and proof
to the commissioner OF Internal revenue,
but the commissioners decision viii be
dnal Under the terms OF the bill in il
Anal form the net income OF each in
dividual taxpayer Is to include the follow
ing items:
All gains. profits and incomes derived
from salaries, wages or compensation for
personal services OF any kind. professions
or vocations. business trade or commerce.
sales or dealings In property. real or per-
s0nal. interest. rent, dividends and securi.
ties. Also the gains and profts from any
transactions Of lawful business and the in
come Of property acquired By gift or be-
quests. Neither the return Of any part
OF the principal invested in life insurance
to the assured. not the proceeds Of poll
cies paid upon death. are included as in
come.
From these items of income the fol-
lowing deductions are allowed:
I. Necessary expenses actually incurred