The river press. [volume] (Fort Benton, Mont.) 1880-current, 1914-02-04
HOW income TAX
HAS TO Be PAID
Form 1.040 Must Be Filled Out
and Flied by March |,
ELABORATE INSTRUCTIONS.

United States Treasury Department
Furnishes Information In Computing
incomes and Making the Deductions
Which the Law Allows-Warns Of
Psnaltiss.
The long heralded blank form to be
used by individuals required by the
new income tax law to make an an
nual return Of their net annual income
has been issued at the treasury depart
ment. It is known as form 1.O4O n
must be used in accordance with I'm
structions." The latter follows:
1. This return shall be made by every
citizen Of the United States, whether re-
siding at home or abroad. and by every
person residing in the United States.
though not q citizen thereof, HAVING a net
income Of 5000 or over for the taxaoie
year and also by every nonresident alien
deriving income from property owned and
business. trade or profession carried on In
the United States by him..
2 When an individual. by reason Of MI
nority. sickness or other disability or alb
sence from the United States. is unable
to make his own return it may be made
for him by his duly authorized repre-
sentative.
3. The normal tax Of l per cent shall be
assessed on the total net income. less the
specific exemption of $1,000 or $4,000. as the
case may be. (For the year 1913 the spe-
cifc exemption allowable is $500 or 49,
$685. 81, as the case may be.) II. however,
the normal tax has been deducted and
withheld o n any part Of the income at the
source or II any part of the income IL
ononl1,od On 6fvf6onHo 11nnn the stock or
from the net earnings of any corporation.
etc., which is taxable Upon its net income
such income shall be deducted from the
individuals total net income for the pur
pose Of calculating the amount Of income
on which tho individual Is liable for the
normal tax of 1 per cent by virtue OF this
return.
1 The additional or super tax shall be
calculated as stated.
s. This return shall be filed with the
collector Of internal revenue for the dis
trict in which the individual resides II he
has no other place Of business. otherwise
in the district where he has personal place
Of business: or in case the person resides
in a foreign country. then with the COL
lector for the district In which his per-
sonal business Is carried on In the United
States.
6 This return must be filed on or before
the LIST day of March succeeding the close
Of the calendar year for which return 10
made.
7. The penalty for failure to file the re-
U within the time specified by law is
go to $1,000. In case of refusal or neglect
to render the return within the required
time Except in cases of sickness or alb
sence) so per cent shall be added to amount
OF tax assessed. In case of false or fraud
ulent return 100 per cent shall be added
to such tax, and any person required by
law to make. render. sign or verify any
return who makes n false or fraudu-
lent return or statement with intent to
defeat or evade the assessment required
by this section to be made shall be guilty
Of q misdemeanor and shall be fined not
exceeding $1,000 or be imprisoned not ex-
ceeding n year or both. at the discre-
ton of the court, with the costs Of pros
ecution.
An Extension of Time.
8. When the return Is not filed within
the required time by reason Of sickness
or absence Of the individual an extension
Of time not exceeding thirty days from
March l within which to file such return
may be granted by the collector. provided
an application therefor is made by the
individual within he period for which
such extension Is desired.
9. This return. properly filled out. must
be made under oath or affirmation. An
davits may be made before n Officer
authorized by law to administer oaths
II before q Justice of the peace or mag
istrate not using q seal q certificate Of the
clerk Of the court Al to the authority Of
such of1cer to administer oaths should b.
attached to the return.
10. Expenses for medical attendance, stor<
accounts. family supplies. wages of do
nestle servants, cost OF board. room Of
house rent for family or personal use arr
not expenses that can be deducted from
gross income. In case an individual own,
his " residence he cannot deduct tn,
estimated value of his rent. Neither shall
he be required to include such estimated
rental of his home as income.
II. The farmer In computing the net in
come from his farm for his annual return
shall include all moneys received for prod
uce and animals sold and for the wool ant
hides Of animals slaughtered, provided
such wool n hides are sold, and he shall
deduct therefrom the sums actually pait
as purchase money for the animals sole
or slaughtered during the year. Whel
animals were raised by the owner ar,
sold or slaughtered he shall not deduc
their value as expenses or loss. He ma!
deduct the amount Of money actually pal,
as expense for producing any farm prod
ucts. live stock. etc. In %deducting ex
penses for repairs on farm property tn
amount deducted must not exceed tn
amount actually expended for such re
pairs during the year for which the retur,
Is made. The cost Of replacing tools o
machinery Is a deductable expense to tn
extent that the cost Of the new article
does not exceed the value Of the old.
IL In calculating losses only such losse
AZ shall have been actually sustained an,
the amount of which has been definitel
ascertained during the year covered b
the return can be deducted.
IL. Persons receiving fees or emo,ument
for professional or other services, as /
the case OF physicians or lawyers. Shout
include all actual receipts for service
rendered in the year for which return
made, together with all unpaid account,
charges for services or contingent incom
due for that year II good and collectabl
Deduction Of Bad Debts.
IL Debts which were contracted durir
the year for which return Is made. b,
found In said yea to be worthless. ms
b deducted from gross income for sa
year., but such debts cannot be regard,
a. worthless until after legal proceedin,
to recover the same have proved fruitle