Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1913-11-21
L II + S + N TIN Ell
ROCKVILLB. MD.
Friday Morning November 81, 1918.
INCOME TAX WILL AFFECT
EVER YBODY

II may cost you money if you don't
understand and obey the provisions of the
new Income Tax Law, even though you
yourself may be exempt from its taxation.
Most people believe that because they don't
earn as much as $4,000 they needn't pay
any attention to the new law. This may
prove a costly mistake. 1t affects vitality
thousands of persons and business firms,
in addition to the small minority with
swollen fortunes" who must pay the taxes.
For instance, if you rent a farm or
building for your business upon which the
rental is over $4,000, you-not the owner
of the farm or building-are directly finan-
cially liable to Uncle Sam for payment of
part of the landlords income tax every
year. You must pay this tax to the Gov
eminent. You are held personally liable
for it by Uncle Sam. You must hold out"
on your landlord the exact amount of the
tax from your rent and pay it to the dis
trict internal revenue collector
Today-right thousands of inter-
nal revenue collectors all over the country
are compiling lists of persons who are pro-
badly liable for an income tax. The law
provides that after November persons
who pay rentals, etc, ageregating over
$4,000 a year must begin to "hold out"
the proper income tax of their Landlord for
1918.
4 haf
is, the income tax is to be assessed for
only 10 months of 1913. Hereafter the
tax must be paid for the full calendar year.
Here is how it will be collected:
Corporations, firms, partnerships, etc,
must file sworn statements each year be-
fore March 81 of the fxed-term salaries,
wages. dividends and the profits paid to
each person during the preceding year in
excess of $4,000. Before June the dis
trict internal revenue collectors will notify
every firm, etc, of the exact amount of the
taxes due, which must be paid before June
80, subject to the penalty of S per cent
Of the tax and per cent additional month
ly if further delayed.
Three thousand dollars for single persons
and four thousand for married couple is
exempt from taxation. The straight nor
NAL" rate is per cent. annually on all
income in excess Of the exempt sums
that is, if you are bachelor and earn
$4,000 you must pay | per cent. taxes
upon $600-nOt upon $4,000.
If you are married and living with your
wife or husband, as the case may be, you
must pay per cent. upon all income over
$4,000-not on the first $4,000. If you
are on fixed, stated salary, monthly or
annually, your employer must deduct per
cent taxes on all income over the $4,000
bachelor" or $4,000 welded" exemption
amounts. The penalty for failure to make
a return by anyone who is not exempt is a
fine of $40 to $1,000. A fine up to ST.
900 and Imprisonment for not exceeding
one year are the penalties for making false
or fraudulent returns.
Uncle Sam will deal directly with the
individual, too. Each person having tax
able income Cess exemptions) must secure
a blank form from the revenue collectors
Office and, under oath, state his net income
He will be notified of the proper tax by the
collector Notices warning all persons
whose incomes are over $4,000 to secure
the printed blanks will soon be posted in
every postoffice and Federal building. To
ascertain whose incomes are taxable, the
collectors will check up by having access
to bank and corporation books. with sworn
statements of dividends from corporations.
The collectors are now compiling lists of
prospect" persons believed to earn over
$4,000. Tenants, corporations, firms, etc,
who hold out" taxes at the sources of
earning are responsible only for the flat.
straight rate of 1 per cent. upon all incomes
over $4,000. The added tax rate upon
incomes over $4,000 must be disclosed
by the individual himself Each person
with an income of over $4,000, subject
to the sliding scale" of increased taxes
upon big incomes, must make a personal,
sworn statement to the collector. Corpora
tons are not responsible for taxes in ex-
cess of per cent. Uncle Sam himself will
see to collecting the extra taxes on the
bigger incomes.