The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-01-06
RULES FOR PAYING
YOUR INCOME TAX
Treasury Department Sends Out
Form, So That None
May Go Astray.
HEAVY PENALTIES PROVIDED
Failure to Comply With De
mands Means Fine and
Maybe Prison.
HEAVY PENALTIES PROVIDED

Washington. January 5.--The form
to be used and regulations to be fol-
lowed by individuals In making re-
turns of income, subject to tho new
Federal Income tax. were sent out to-
day by the Treasury Department
Every citizen OF the United States.
whether residing at homo or abroad,
every person residing In the United
States. and every nonresident alien who
has an income from United Staten in
vcstmcnts OF $4,000 or more. must make
returns.
For the past year. 1918. specific ex-
emptions VIII be $500, or s3.333.33 in
the case OF Il married person, and in
future years $4,000 and $4,000. Where
the tax has beer withheld on part of
the income at the source, or where
part of the income comes as dividends
upon stock OF corporation taxable
undcr the corporation tax section of
the law, the equations set forth that
such income shall be deducted from
the individuals total net income when
| computing the amount on which he Is
taxable.
The law imposes a tax of per cont,
and provides that individuals who have
an income between $4,000 and $4,000
shall pay an additional tax Of per
cent on such amount: on all between
$4,000 and $4,000. 2 per cent: $4,000
to 100000. per cent: 100000 to $780,
600, per cent; $4,000 to 100000, 5
per cent. and all over 100000. 6 per
cent. Returns must be In the hands
| of the collector of internal revenue
In the district where the taxpayer
lives. OF where he has his PRINCIPAL
lat
/. failure to observe this limit to be
punished with fines ranging from $50
to $1,000
| Heavy Penalties.
REFUSAL or neglect TO file returns, ex-
! cept In case of sickness or absence.
| VIII result In an addition Of so per cent
10 the tax assessed. In the case OF
I false or fraudulent return 100 per cent
VIII be added TO the tax assessed and
any person required to make, render,
( sign or verify such return, who makes
false or fraudulent statement with
intent TO defeat or evade the tax, will
| be guilty OF misdemeanor and subject
7 TO q fine of not more than $4,000 or
I Imprisonment for one year or both
! An extension of thirty days from
March in case of sickness or absence
! may be allowed by the proper col
| lector. provided an application is made
| by the individual concerned. Returns
! must be accompanied by oath or af-
/ tirmation.
! Expenses for medical attendance,
store accounts. family supplies. wages
! OF domestic servants, cost OF board.
i room or house rent shall not be de-
/ Quoted from gross income. and individ-
! uals 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. for wool and hides of
slaughtered animals, provided they are
/ sold. He may deduct the sums actually
! paid for the animals sold or slaught-
/ cred 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, live stock,
ETC., and for repairs for the current
year. The cost OF tools or machinery
I may be deducted.
Persons receiving fees or emolu-
ments for personal or other services
must include all actual receipts for
services during the year. together with
all unpaid accounts charges for SER
vices or contingent income for tho year
IF good and collcctaDle."
! Worthless Debts Deducted.
| Debts contracted within current
year may be deducted from gross in
come. when found worthless, but not
before legal proceedings have proved
| unavailing. Debts contracted in previ-
| Gus years. which eventually prove
! worthless, may be deducted subse-
| quently under the head Of losses. when
! they are charged Off
Amounts due or accrued to individual
members of partnership from net
earnings shall be included In the re-
/ turn OF the individual. whether dis
tributed or not. and United States pen
sions must be included rs income Es-
/ timated advance of real estate value Is
! not required to be reported unless
! placed as an asset on the individuals
books. Costs OF suits and other legal
! proceedings arising out Of ordinary
business may be treated as expense and
deducted from gross income OF bust
ness.
| In computing net income. compensa.
tion Of all officers and employees OF q