New Iberia enterprise and independent observer. (New Iberia, La.) 1902-1944, 1914-01-24
INCOME TAX.

Washington, Jan. 5.-Thc form
to be used and regulations TO be
allowed by individuals in making
returns of income subject to the
new Federal income tax were
sent out to-day 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 III
vestments of $4,000 or more mus
make returns.
For the year 1913, specific eX-
emptions will be $4,000, or 1898 81
in the case Of a married person.
and in future years $4,000 and
$1,000. Where the tax has been
withheld as part Of the income
source, or whore part Of the in
come comes as dividends upon
stock of a corporation, taxable
under the corporation tax section
of the law, the regulations set
forth that such income shall be
deducted from the individual $
total net income when computtin"
the amount on which he is tax
able.
The law imposes a tax Of ] per
cent 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 $75, 1000. 2 per cent
$4,000 to 100000, 3 per cent ;
100000 to $250,00O, 1 per cent
$250,000 to 100000, 5 per cent.
and all over 100000, 6 per cent.
Re turn must be in the hands of
the collector Of internal revenue
in the district where the payee
lives or where he has his princi
pal place of business, not later
than March /, failure to observe
this Limit ito be punished with
fines ranging from 500 to $1,000
Refusal or neglects to file re
turns, except in ease of sickness
or absence, will result in an addi
ton of 80 per cent to the tax as
sessed. In ease Of false or trad
ulent return, 100 per cent will BE-
added to the tax assessed, and
any person required to make
render, sign, or verify such re.
turn who makes a false or fraud
ulent statement with intent to de
feat or evade the tax, will be
guilty Of a misdemeanor and sub
ject to fine of not more thar
$4,000 or Imprisonment for ono
year, or both.
May Grant Extension.
An extension Of thirty days
from March |, in case Of sickness
or absence, may be allowed by
the proper collector, provided al
application is made by the indi
vidual concerned. Returns must
be accompanied by oath or af
frmation.
Expenses for medical attend
ance, store accounts, family sup
plies, wages of domestic servants
cost of board, room or house rent
shall not be deducted from gross
income and individuals who owl
their own residences cannot de
duct the estimated value Of thu
rent.
The farmer is required to in
clude in his net income all money
from product and animals sold
for wool and hides of slaughter
ed animals, provided they are
sold. He may deduct the sums
actually paid for the animals sold
or slaughtered during the year
but the value Of animals raised
shall not be deducted as expen.
scs 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 of machinery is deductible
Persons receiving fees or emol-
umcnts for professional or other
services must include all actual
receipts for services during the
year, together wiah alb unpaid
accounts, charges for service or
contingent income for the year,
eff good and collectible. e.
Must Include Debts.
Debts contracted within cur.
rent year may be deducted from
gross income, when found worth
less, but not before legal proceed
Sngs have proved unavailing.
Debts contracted in previous
years, which eventually prove
worthless, may be deducted sub.
sequently under the head Of los
ses, when they are charged off.
Amounts due or accrued to in
dividual members of partner
ship from net earnings shall be
included in the return of the in
dividual, whether distributed or
not, and United States pensions
must be included as income Es-
timated advance of real estate
value is not required to be re-
ported unless placed as an asset
on the individuals books. Costs
of suits and other legal proceed
.ings arising out of ordinary bust
ness may be treated as expense
and deducted from gross income
of a business.
In computing net income, com,
v,ocso%;ov, ~ oil officaro and en-