Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1914-01-09
Rules Governing Payment Of
Income Tax Is Announced
By the Department
PENALTIES ARE NAMED
Returns Must Be Made By
March |. Failure Punish
able By a Fine


The form to be used and regulations
to be followed by individuals in max
ing returnes of income subject tC
the new income tax were sent ou;
today by the treasury department
Every citizen of the United States
whether residing at home or abroad
every person residing in the United
States and every nonresident alien
who has income from United States
investments Of $1,000 or more mus,
make such return.
Return must be in the hands of thl
collector Of internal revenue in the
districts where the payee lives OF
where he has his principal place OF
business. not later than March
failure to observe this limit to be
punished with fines ranging from 500
to 81 900.
Penalty Is Named
Refusal or neglect to file returns
except in case OF sickness or absence
will result in an addition of 80 per
cent. to the tax assessed. In case
of false or fraudulent return. 100 pei
cent. will be added to the tax assess
ed and any person required to make
render. sign or verify such return
who makes false or fraudulent state
ment with intent to defeat or evade
the tax will be guilty of misde
meanor and subject to a fine of not
more than $4,000 or Imprisonment for
one year or both.
For 1913 the specific exemptions
will be $4,000, or s3,333.33 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 par;
of the income comes in dividends OF
corporation which is taxable unde!
the corporation tax section, the reg
ulations set forth that such income
shall be deducted from the individ
uals total income when computing
the amount on which he is taxable
Additional Tax Provided
The law imposes tax of | pei
cent. and provides that individuals
who have an income of more thar
| $4,000 and not more than $4,000
shall pay an additional tax of pei
cent. on such amount; on all ove
$4,000 and not over $4,000. pei
cent. on all over $4,000 and no
over 100000, per cent; all Owe
100000 and not over s250,00O, Pc
cent; all over s25O,O0 and not $500,
| 600, 5 per cent, and all over $500
600, per cent.
F,xepnses for medical attendance
store accounts, family supplies
wages of domestic servants, cost o
board. room or house rent shall no
be deducted from gross income, an'
! individuals who own their own resi-
!
value of the rent.
| Farmers Must Pay.
The farmer is required to includ,
in his net income all money from
produce and animals sold for WOO
and hides of slaughtered animals. pro
vided they are sold. He may deduc
the sums actually paid for the ami
mails sold or slaughtered during th'
year, but the value of animals raised
shall not be deducted as expenses o
loss. The farmer also may deduc
money paid as expenses for produc
ing farm products, live stock, etc.
and for repairs for the current yea!
| The cost of tools or machinery is de
ductable. but not to exceed in value
those replaced
Persons receiving fees or emolu
ments for professional or other ser
vices must include all actual receipt
for services during the year, togethe
with all unpaid accounts. charges TO
service or contingent income for th
year, if good and collectable.'
Debts contracted within curren
year may be deducted from gross in
come when found worthless. but no
before legal proceedings have prove'
unavailing. Debts contracted in pre-
vious years, which eventually prov
worthless, may be deducted substan
TALLY under the head of losses, whel
they are charged off.
! Amounts due or accrued to individ
ual members of a partnership from
net earnings shall be included in tn
return of the individual, whether dis
turbed or not, and United States per
sions must be included in incomes
Estimated advance of real estat
value is not required to be reported