The Birmingham age-herald., 1914-01-23
M'NEEL RECEIVES
RULES REGARDING
INCOME TAX LAW
Returns Must Be Made by
March 1 by All Who
Are Liable
FAILURE TO Do so
WILL MEAN A FINE
Heavy Penalty for Making False Re-
turns-Blank Forms May Be OBJ
tanned From McNeel-How
to Schedule Income

! Notice of regulations governing the pay
| ment OF income tax have been re-
ceived by Collector of Internal Revenue
j. d. McNeel, from w. II. Osburn, COM
missioner of internal revenue and coun-
| tersigned by W. G. McAdoo, Secretary
| or the Treasury. The notices set out
the general provisions of the income tax
act, with the manner in which the sched-
| ule of property shall be made out and
| the several penalties for failure to
comply with the provisions of the act.
| 1t is obligatory on the part of the per-
| sons liable to this tax to make such LA
bility known. The penalty for failure
to make return to the collector of in
ternal revenue on or before the March /.
1914, is fine of not less than $40 or more
than $1,000 and an additional penalty of
90 per cent of the tax liable For MAX
ing false or fraudulent returns a fine not
exceeding $1,000, or a term of imprison
ment not exceeding one year or both, NAV
be imposed
| The act makes it the duty of every
person, firm or corporation to make an
plication for the blank schedule and a
failure to secure the said blank will in
nowise relieve the persons from liabil-
ity. The notice is as follows:
General Provisions
Under the provisions of the federal in
come tax, approved October 8, 1913, every
citizen of the United States, whether re-
siding at home or abroad. and every per-
son residing in the United States. though
not citizen thereof, who has an annual
net income from all sources in excess of
sScOo, is required to make a return of
annual net income to the collector of in
ternal revenue of the collection district
IN winch such person resides or has his
principal place of business; and such per-
son will be required to pay a normal
tax of l per cent on such entire net in
| come over and above $1,000 or $4,000 ac-
cordingly as such person is unmarried or
Is married and living with wife or hus-
band.
| PERSONS have an annual net incomes
IN excess of $4,000 will also be subject
to additional or surtax at increasing rates.
graduated accordingly as the net income
exceeds certain amounts specified in the
act.
When Return Is Required
"On or before March /, 1914 and on or
before March 1 of each year thereafter. a
true and accurate return under oath or
| affirmation shall be made for himself or
| herself by each and every person above
described whose annual net income is in
excess of $1,000; and by each agent, guar
dian degal or naturaD, trustee and execu-
tor for the person or beneficiary for
| whom they act, provided the net income
| of such person or beneficiary is in ex-
cess of $1,000
The return thus made shall set out
specifically the gross income arising or
accruing to such person from all sources
during the year, and from such gross
Income there may be deducted the items
| of expenses and other allowances au-
thorized by the act and provided for in
the blank forms prescribed by the treas
ury department for the use of individuals
| in making their returns.
Failure to Make Returns
ANY person, liable under the law to
| make a return, who fails to make such
return within the prescribed time shall
be subject to penalty of not less than
| s20 no more than $1,000. An additional tax
! of SO per cent upon the amount of the
| tax assessed on the basis of the net in
| come of such person shall also be as
sessed against said taxpayer.
Amy person who makes false or
| fraudulent return or statement with in
| tent to defeat or evade the tax shall be
| fined not exceeding $1,000 or be imprisoned
| not exceeding one year, or both, with
costs of prosecution.
Where Blank Forms May Be Had
"The government has, for the purpose
of uniformity, prescribed blank forms to
| be used by individual agents, guardians,
| etc., in making returns.
| THE obligation of securing blank forms
| In time to make their returns on or before
| March l is placed upon all individuals
who may be subject to the tax.
Therefore, every person whose annual
net income is in excess of $1,000 should
| make application at once to the collector
| of internal revenue of the collection dis
! trict in which such person resides or has
| his principal place of business for the
necessary blank forms.
| Neglect to apply for and secure the
| prescribed form will not relieve a tax
able person from the penalty imposed by
| the act for delinquent filing of the re-
| turn.
As to Corporations
"The normal tax of per cent imposed
| upon individuals is also imposed upon
corporations, joint stock companies
| associations, and insurance companies,
the tax against such organizations being
| 1 per cent of their entire net income re-
| ceived from all sources during the year
| for which the return Is made. Every cor
poration, joint stock company or associa-
| ton, and every insurance company, not
specifically enumerated in the act as ex-
empt, Is required to make a return re-
gardless of the amount of the net in
come which 1t may have had.
Corporations should make application
for such forms in the same manner as
individuals are directed to do. As In the
case of individuals. failure to receive or
secure the blank form will not excuse the
delinquency of corporation in making it's
return.
Regulations relative to the income tax
law as applied to both individuals and
corporations may be had upon applica-
ton to the collectors of internal revenue
of your district.
| Approved January 6, 1914.
Nv. H. OSBORN, Commissioner Of In
ternal Revenue"
wv. @. MADOO. Secretary of the Treas
ury.'
ISTEAMER BADLY
BATTERED IN STORM