Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-09-30

WASHINGTON, Sept. 90.-It now
behooves all those with an income of
more than SO 900 a year to lay a hand
upon a 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 if they do not.
The matter has been hanging fire for
long time, but now that the House
has reached the income tax feature of
the tariff bill in it's final form it will
rest with everybody having more than
the $4,000 limit to master the details.
Representative Cordell Hull of Ten
nessee, who framed the income tax
bill, issued a statement last night In
tended to help the taxable persons,
and the internal revenue bureau of
the treasury department is already at
work on a set of instructions which
will be issued later
Includes All Citizens, Home or Abroad.
In the first place the law about to
go into effect includes within its scope
all citizens of the United States re-
siding at home or abroad, all persons
living in the United States, though not
citizens thereof, and all net incomes
from property and business owned or
carried on in the United States by
aliens.
In every case a 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 ex-
emption is allowed, so that all told a
married person is entitled to an ex-
emption of $4,000. Only one $4,000 de-
duction, however, is to be allowed
from the aggregate income of both
husband and wife.
The income tax law will go into
effect as soon as it is signed. and I'M
der ordinary circumstances incomes
are to be computed for the calendar
year In the case of the present year.
however the tax is to be computed
only on that portion of the income ac-
cruing from March l to December 81
next
No Escape Even If Uncle Sam Maps.
The treasury department is prepar-
ing blank forms which will be diStri-
buted by the district internal revenue
collectors to each taxable person. If
you fail to get such a blank you are
required under a penalty to apply to
the collector or his deputy for one.
Blanks will be on deposit with post
masters for the convenience of tax
payers. Every taxable person is to fill
the internal revenue collector of his
district before January and March
next
The taxpayer must fill out under
oath a true and accurate statement
of his income of $4,000 or more for
the calendar year. This return shall
set forth specifically the gross amount
of income from all separate sources
and from this total shall be deducted
the aggregate items of the expenses
and allowances authorized under the
law.
Any taxpayer who fails to make a
return on or before March 1 will be
liable to a penalty of not less than
500 nor more than $1,000. If his re-
turn is fraudulent it will be a mis-
demeanor, and he will be subject to
a fine of $4,000 or Imprisonment for
one year, or both.
Won't Pay Not to Pay Promptly.
Each taxpayer will be notified by
the internal revenue commissioner
by June l, 1914 of the amount of the
tax due from him and the payment
must be made by June 80 and after
ten days further notice, 5 per cent.
will be added to the amount of the
tax, and interest at the rate of l per
cent. a month from the time the tax
falls due.
Exceptions are made in regard to
penalties in the cases of incomes from
the estates of insane diseased or in
solvent persons.
In the case of neglect or refusal
to make returns, or in a case of false
returns the commissioner of internal
revenue may make such return him
self any time within three years of
the date when the return was due.
The collector of internal revenue
may increase the amount of any re-
turn if he has reason to believe that
the income is understated, but he is
obliged to serve due notice and to
produce evidence.
In the event of a disagreement be-
tween the collector and the taxpayer,
the latter may carry the case with
papers and proof to the commissioner
of internal revenue, but the commits
sioner's decision will be final.