Daily Kennebec journal., 1914-01-06
Form and Regulation in
Making Income Returns.
Treas'y. Dept. Sends Out Blanks
For First Collection Under Law.
Penalty Strict for Attempting to De.
fraud Gov't.--k Few Hints.

used and regulations to be followed
by individuals in making returns OF
income, subject to the new federal in
come tax, were sent out today by the
treasury department. Every citizen in
the United States, whether residing at
home or abroad, every person residing
in the United States and every non
resident alien who has an income from
United States investments of $4,000 or
over, must make such return.
For the part year 1918, the specific
exemptions will be $2500 or SS333.S3 in
the case of a 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 of
the income comes as dividends upon
stock of a corporation which is taxa
bile under the corporation tax section
OF the law, the regulations set forth
that such income shall be deducted
from the individuals total net income
after computing the amount on which
he is taxable.
The law imposes a tax of l per cent.
and provides that individuals, who
have an income over $4,000 and not
more than $4,000. shall pay an addi-
tional tax of ! per cent. on such
amounts on all over $4,000 and not
over $4,000, per cent; on all over
$75,0G0 and not over 100000 per cent;
all over s100,0 and not over $4,000
per cent; all over $4,000 and not
over 100000. per cent; and all over
$4,000, 6 per cent Returns must be
in the hands of the collector of inter
nal revenue in the district where the
payee lives or where he has his prin-
cipal place of business not later than
March 1. Failure to observe this time
limit to be punished with fines ranging
from 500 to $1,000.
Refusal or neglect to file returns, ex-
cept in case of sickness or absence
will result in an addition of so per
cent. to the tax assessed. In case of
false or fraudulent return 100 per
cent. will be added to the tax assessed
and any person required to make, rem
der, sign or verify such return, who
makes false or fraudulent statement
with intent to defraud or evade the
tax, will be guilty of a misAemeanor
and subject to a fine of not more than
$4,000 or Imprisonment for one year or
both.
An extension of 30 days from March
/. in case of sickness or absence may
be allowed by the proper collector, pro-
yidad an application is made by the
individual concerned
Expenses for medical attendance,
store accounts, family supplies, wages
of domestic servants, cost of board.
room or house rent, shall not be de-
Quoted from gross income, and indi-
viduals who own their own residences
cannot deduct the estimated value of
the rest.
The farmer is required to include in
his net income all money from produce
and animals sold. and for wool and
hides slaughtered 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 expenses or loss. The
farmer also may deduct money paid as
expenses for producing farm products,
livestock. etc, and for repairs for the
current year. The cost OF tools or ma
millinery is deductable, but must not
exceed in value those replaced
Persons receiving fees or emolu
ments for professional or other SER
vices must include all actual receipts
for services during the year, together
with all unpaid accounts, charges for
service or contingent increase income
Tor the year IF good and collectable. -
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-
Vlous years. which eventually prove
worthless, may be deducted subse-
quently under the head of losses
Amounts due or accredited to individ-
ual members of partnership from
net earnings, shall be included in the
/ return of the individual whether dis
tributed or not and United States
pensions must be included as income
In computing net income compensa-
tlon OF all officers and employees of q
state or any political subdivision
thereof shall be excluded. but not
where paid by the United States.