The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1914-02-19
SHORT Time LEFT
TO MAKE RETURNS

treasury Department, Internal Reve-
nue. Service, San Francisco, Febru-
ary l6, 1914
Tc all concerned:
This Office has done everything in
its power to inform individuals of
their duty and liability under the
Federal income tax law.
Only a few days now remain of the
time within which returns of income
may be fled without incurring labil-
ity to the severe penalties of the law
for failure, neglect or refusal to com
| ply with its requirements.
March |, 1914, the first day of next
month, is the last day on which the in
ldividual (or corporation) can file re-
turn without becoming liable to the
penalties.
| After March fist thorough canvass
will be made of the territory within
| the jurisdiction of this office and ev-
cry taxable person then found who
will not have made return, will be as
sessed both the tax due from him and
an increase of 80 per cent thereon.
Moreover, he or she will be liable to a
fine not exceeding $1,000.
This district covers all that part of
| California north of Kern and San
Luis Obispo counties; also the entire
state of Nevada.
Are You Liable to Make Return?
That is the vital question for you
at this time. The answer is simple.
If your net income for that period
of the year 1913 from March l to De-
cember 81 both dates inclusive, was
50 500 or over, you must make return.
This applies to both single and mar
ried persons.
To make this return you must get
the prescribed official form (No.
1040) Ask your bank for form or
write Immediately to the collector of
internal revenue, San Francisco, Cal,
for one.
If you are at all in doubt, it were
better that you take steps to inform
yourself. The law places the respon-
sibility upon the individual
If you do not understand what
net income' means as it de-
fines liability to make a return, you
are invited and urgently advised to
write for information.
Respectfully,
JOSEPH J. SCOTT,
Collector of Internal Revenue, First
District of California.
Interest on Certain Bonds Exempt
TO ali Concerned:
You are advised that the attorney
general of the United States has held
| tat special assessment districts, Great
ed under the laws of the several
states for public purposes, such as the
| Improvement of streets and public
highways, the provision for sewer
age, gas and light, and the -reclauia
nation, drainage or irrigation of
bodies of land within such special as
sessment districts when such dis
trict are for public use, are political
subdivisions of the state within the
meaning of paragraph B, section 2
of the income tax law which reads as
| follows:
"That in computing eet income
there shall be excluded interest upon
the obligations of a state or any po-
litical subdivision thereof
The commissioner of internal reve-
nue. has therefore held that the term
"political subdivision includes spec
ial assessment districts or divisions of
state created by the proper authori-
| ty of the state acting within its con-
stitutional powers and under it's gen.
eral laws, for the purpose of carrying
out a portion of those functions of
the state which by long usage and in
herent necessities of government have
always been regarded as public.
| Such districts are the irrigation
and reclamation districts of Califor-
MIA, constituted maintained and gov
erned as provided in the state consti-
tuition and general laws. These dis
tricts seem TO come clearly within
the meaning of the decisions by the
commissioner of internal revenue.
You are therefore advised that in
come derived from interest upon the
bonds of such districts is exempt
from taxation under the income tax
law and should be excluded in COM
putting net income for the income tax.
| Respectfully,
JOSEPH J. SCOTT,
Collector of Internal Revenue, First
District of California.