The Washington herald., 1913-09-30
TREASURY PLANS
TO COLLECT TAX
Department Preparing Blank
Income Forms for Inter-
nal Revenue Agents.
NO WAY TO ESCAPE
Those Above $1,000 a Year Will Not
Find Law Easy to Eyade-Severe
Penalties Proposed.

1t behOoves folks with an income Of
more than $4,000 year to lay a hant
upon a furrowed brow and try to FIND
out how they are going to pay the in
come tax to the government, and wha'
will happen to them if they don't.
The matter has been hanging fire fol
long time, but now that the Confer.
ence Committee of the Senate and the
House has reported the income taI
feature of the tariff bill in its final
form, it will be up to everybody-that
is, above $3.00O-tO master the de-
tails.
Representative CordelI Hull of Ten.
nessee, who framed the income tax bill
issued a statement yesterday intended
to help some, and the Internal Rev
enue Bureau of the Treasury Depart
ment is already at work on set OF
. instructions which il will issue later.
= the first place. the law about TO &C
into effect includes within Its scope al
citizens of the United States residing al
home or abroad: all persons residing In
the United States, though not citizens
thereof. and all net incomes from prop
ty and business owned or carried on
in the United States by aliens.
Living Expenses Deducted.
In every case a deduction of 5000 is
allowed for living expenses. In the case
of husband who is living nth his wife,
or a wife who is living with her husband,
an additional $1,000 exemption is allowed.
So that, all told. a married person is en-
titled to an exemption of 5000. Only
one 1900 deduction. however, is TO be al
lowed from the aggregate income of both
husband and wife.
The income tax law will go into effect
p soon as it is signed. and, under ordi-
nary 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 por-
tion Of the income accruing from March
to December 81 next.
The Treasury Department is preparing
blank forms which will be distributed by
the district internal revenue collectors
10 each taxable person. If you fail 20
get blank, you are required under a
penalty to apply to the collector or his
deputy for one. Blanks will be on de-
posit with pOstmasters for the con-
Venience of taxpayers. Every taxable
person is TO fill out and return one of
these blanks to the internal revenue col
leCtor of his district between January
l and March l next.
The taxpayer must fill out under oath
a true and accurate statement of his net
income of 5000 or more for the calendar
cally the gross amount of income from
all separate sources and from this total
shall be deducted the aggregate items
Of the expenses and allowances au-
thoriZed under the law.
Any taxpayer who fails to make a re-
turn on or before March l will be liable
TO penalty of not less than so nor more
than $1,000. II his return is fraudulent it
will be misdemeanOr and he will be
subject to a fine OF 5000 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 by June % following. In the event
Of failure to pay the tax by June 20, and
after ten days further notice, 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 penal
ties in the cases of incomes from the
estates of insane, deceased, or insolvent
persons.
In the case OF neglect or refusal to
make returns, or in case of false
returns, the commissioner of internal rev.
enue 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 if he |
has reason to believe that the income is |