The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1914-01-06
INCOME TAX CANNOT
SAFELY Be EVADED
Regulations to Be Followed
by Individuals Making Re-
turns Are Sent Out.
PENALTIES ARE HEAVY
Tax May Be Doubled for
Making False Returns, and
Jail Sentence Imposed.
PENALTIES ARE HEAVY

WASHINGTON, Jan. 5.-The form
10 be used and regulations to be rol-
lowed by individuals in making returns
of income subject TO the new income
tax were sent out today by the treas
urv department. Every citizen OF the
United States. whether residing at
home or abroad. every person residing
in the United States, and every nom
resident alien who has income from
United States investments of S5ooo OF
over, must make such return.
Returns must be in the hands OF the
collector OF internal revenue in the dis-
trict where the payec lives or where
he has his principal place OF business
not later than March !, failure to OBJ
serve this limit to he punished Win
fines ranging from $50 to $1,000
Refusal or neglect to file returns, eX-
cept in case of sickness or absence,
will result in an addition of 5o per
cent to the tax assessed In case OF
false of fraudulent return, 100 per cent
will be added to the tax assessed, and
anv person required to make, render,
sign or verify such return who makes
a false or fraudulent statement with
intent TO defeat OF evade the tax VIII
be guilty of misdemeanor and sub,
jcct to a fine of not more IMAM SauuV
or imprisonment for one year, or ooth-
An extension of thirty days from
March | IN case of sickness or apsence
nav be allowed by the proper collector,
provided an application is made by the
Individual concerned. Returns must be
accompanied by oath or affirmation.
Specific Exemptions.
For 1913 the specific exemptions will
ne S2250, or S3333.33 in the case OF
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 or Inc IN
come 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 in
come shall be deducted from the indi-
vidual' s total income when computing
the amount on which he is taxable.
The law imposes tax of l per cent
and provides that individuals who have
an income over 10000 and not more
than $4,000 shall pay an additional
tax of per cent on such amounts; on
all over $4,000 and not over $4,000
-
over 100000, per cent; all over $l00,
600 and not over S250,000, per cent;
ali over $250000 and not over $780, 900,
per cent; and all over 100000, per
cent.
Expenses for medical attendance,
store accounts. family supplies, wages
of domestic servants, cost of board
room or house rent shall not be de-
ducted from gross income, and indi-
a1e La,r Sap cac
cannot deduct the estimated value of
the rent.
Rules for Farmers.
The farmer is required to include in
his net income ALI money from produce
and animals sold for wool and hides of
slaughtered animals, provided they are
sold lie may deduct the sums actually
paid for tho animals sold or slaughtered
during the wear. but the value OF ami
mails shall not be deducted as expenses
or loss The farmer NAV also deduct
money paid as expenses for producing
farm products, live stock, etc. and for
repairs for the current year. Tho cost
Of tools or machinery is deductible, but
not exceeding in value those replaced.
Persons receiving fees or cmoluments
for professional or other service must
include all actual receipts for services
during the wear, toge1Ner WIN all I'M
paid accounts. charges for service or
contingent income for the year "if
good and collectible- -
Provision as to Debts.
Debts contracted within a current
year may be deducted from gross in.
come when found worthless, but not
before legal proceedings have proved
unavailing. Debts contracted in pre-
vious years, which eventually prove
worthless, NAV he deducted substan-
tally under the head of losses, when
they are charged off,
Amounts due or accrued TO individ
ual members OF n 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 as income. Es-
timated advance Of real estate value is
not required TO be reported unless
placed as an asset upon the individual .
books. Costs of suits and other legaI
proceedings arising ont of ordinary
business may be treated as expense and
deducted from gross income of bust
ness. In computing net income, com
pensation of all officers and employees
Of state or any political subdivision
thereof shall be excluded. but not
where paid by the United States