Weekly journal-miner. [volume] (Prescott, Ariz.) 1908-1929, 1914-02-11
ARE YOU LIABLE UNDER
NEW INCOME TAX LAW?

1t has become so obvious that
many of those who are subject to
the new Federal income tax. do not
understand their rights, as we'll as
their duties the Journal Miner here
with gives some explanation OF GER
tain requirements of the statute.
Less Than a Month.
Less than a month remains of the
time within which an individual
may make his return of income to
the office OF the collector of inter
mai revenue. The law requires that
the return shall be filed for the tax
able period OF the year 1913 on or
Lcfore March /. next.
With this brief time in which to
act, it follows, therefore, that every
person should ascertain whether or
not his business affairs are such as
t, make him liable TO file a return,
which in the form prescribed by the
treasury department is to be a state
ment. under oath or affirmation, Of
his income from all sources and his
business expenses, losses and other
expenditures in such items as taxes,
interest and so on.
In brief. the first question that
every person must answer for him
self or herself, is: docs my net
income subject me to the necessity
OF making the return"
$500 for Year 1918.
The law provides that every per-
son with an annual net income OF
$500 or over shall make this re-
turn. 1t should be borne in mind,
however, that the statute was made
effective only as of March /, 1918,
and was the law of the nation for
only ten months, or fve-sixths, of
the year 1913. For this reason the
treasury department has ruled that
every person whose net income was
s., 500 or over for that period of the /
year 1918 from March lst to De-
cember 3lst, both dates inclusive,
shall make a return. And, likewise,
it will allow the exemption and de-
auctions TO be figured on only a
fve-sixth basis. For instance, IN
the return made on or before March 1
|, 1914, for the taxable period of
1913, an individual can charge of
only five-sixths of the business ex-
penses, taxes, etc, that were incurred
for the entire year.
Note should be taken, then, of the re-
quirement OF return when the met
income" for the last ten months of
the year 1918 was $500 or over,
and the question OF the individuals
liability to make a sworn statement
Of his business affairs to the gov
eminent is resolved to a determine
ton of what his met income" was
within the meaning OF the law and
Should Exercise Caution.
This is the most important con-
sideration now involved and the in
dividual should be cautious in avail
ing himself OF the right to charge
Of his own deductions before decid
ing for himself whether or not he
will make i return. lest he be too
liberal with himself and later be
declared taxable and be penalized.
1t were better in the case of doubt
to make the return and submit ones
claims for deductions to the judy
mcnt OF the government authorities,
because the mere making of re-
turn does not necessarily mean that
the individual who makes it will be-
taxed. He will not be taxed if his
MS compensation, when checked up
by the Federal authorities, shows
that lie did not have taxable met
income Tor the taxable period of I
1913.
What Is Net Income?"
To determine met income" we ,
suggest method Of computation
that fulhlls all the requirements OF
he law even though its phraseology