Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1914-01-06
Forms Out for
Income Returns
MUST BE FILLED OUT AND FILED
BY MARCH 1
PENALTY FOR NEGLECT
Fifty Per Cent. Addition to be Made
in Suoh Cases, and 100 Per Cent.
For False or Fraudulent Returns.

Washington, Jan. 5-The form to be
used and regulations TO be followed by
individuals in making returns of in
come subject to the new federal in
come tax were sent cut today by the
treasury department. Every citizen Of
the United States, whether residing at
nome or abroad, every person residing
in the United States and every non
resident alien who has income from
United States investments of $4,000 OF
over must make such return.
Exemptions for 1918.
For the part year 1918 the specific
exemptions will be $4,000, or S3,333.S3
in the case of a married person, and
in future years $4,000 and $4,000.
Where the tax has been withheld on
part of the income at the source, or
where part of the income comes as
dividends upon stock of a corporation
which is taxable under the corporation
tax section of the law, the regulations
set forth that such income shall be
deducted from the individuals total
net income when computing the
amount on which he is taxable.
Schedule of Taxation.
The law imposes a tax of one per
cent, and provides that individuals
who have an income over $4,000 and
not more than $50, 900 shall pay an ad-
dftional tax of one per. cent. on such
amount: on all over $4,000 and not
over $4,000. two per cent. on all over
$4,000 and not over 100000, three per
cent: all over $100. 900 and not over
S25O,0O0, four per cent; all over $780,,
600 and not over 100000 1--WE per
cent, and all over 100000, six per
cent. Returns must be in the hands of
the collector of internal revenue in
the district where the payee lives, or
where he has his principal place of
business not later than March l. fail
n limit 70 he
punished with fines ranging from $50
to $1,000.
Penalties for Neglect and Fraud.
Refusal OF neglect to file returns,
except in case of sickness or absence,
will result in an addition of so per
cent to the tax assessed. In case of
false or fraudulent return, 100 per
cent. will be added to the tax assessed
and any person required to make rem
der, sign OF verify such return, who
makes a false or fraudulent statement,
with intent to defeat or SVas5e the tax,
will be guilty of a misdemeanor and
subject to a fine of not more than
$4,000 or Imprisonment for one year,
or both
An extension Of so days from March
l, in case of sickness or absence, may
be allowed by the proper collector,
provided an application is made by the
individual concerned. Returns must
be accompanied by oath or affirmation.
Laws Application to Farm Products.
Expenses for medical attendance,
store accounts, family supplies, wages
Of domestic servants, cost of board,
room or house rent shall not be de-
Quoted from gross income, and indi-
viduals who own their own residences
cannot deduct the estimated value of
the rent.
The farmer is required to include in
his net income all money from produce
and animals sold and for wool and
ed they are sold. He may deduct the
sold or slaughtered during the year.
but the value of animals raised shall
not be deducted as expenses or loss.
The farmer also may deduct money
paid as expenses for producing farm
products, livestock, etc, and for re-
pairs for the current year. The cost
of tools or machinery is deductible, but
must not exceed in value those re-
placed.
Unpaid Accounts Part of Income
Persons receiving fees or emo1u-
ments for professional or other ser
vices must include all actual receipts
for services during the year, together
with all unpaid accounts, charges for
services or contingent income for the
year 'if good and colleCtible.
Debts contracted within a current
year may be deducted from gross in
come, when found worthless, but not
before legal proceedings have proved
uuaVailinG