The Birmingham age-herald., 1914-01-06
Every Person Receiving
$4,000 or More From U. S.
Investments Liable
PENALTY PLACED ON
FRAUD OR NEGLECT
Tax of | Per Cent Imposed. and Ad-
ditional Graduated Tax Placed
Upon Incomes of $4,000
or More
Washington. january s.-The form to

"asnhmgtOn, January S.-The form to
be used and regulations to be fol-
lowed by individuals in making re-
turns of Income subject TO tn, lew fed
eral income tax were seny oany
by the treasury department ESy elf
lien of the United ststes yher re-
siding mt home or abros .SSy person
residing In the United e'S. and ev-
cry nonresident alien .c2Aas an In
come from United So Investments
of $4,000 or more. O. axe return.
For the past yea . o specific exemp-
tions will be 1880 ,3Sas in the case
of a married person, ID in future years
5000 and $500. Where the tax has been
withheld on the part of the income ut
the source, or where part of the Income
comes as dividends upon stock OF cor
porstion, taxable under the corporation
tax section of the law, the regulations
set forth that such income shall he de-
Quoted from the individuals total net in
come when computing the amount IN
which he is taxable
The law imposes a tax of per cent and
provides that individuals who have an ir-
come between $4,000 and $4,000 shall pay
an additional tax of per cent on such
amount; on all between $4,000 and S75,0eo
2 per cent; $4,000 to 100000, per cent
100000 to $4,000. 4 per cent; s95o.o0o to
$500. 600, per cent, and all over s5oo,0o0. 9
per cent Return must be in the hands
CT the collector OF internal revenue in
the district where the payee lives or
where he has his principal place OF busi-
ress. not later than March J., failure to
observe this limit to be punished with
fines ranging from $50 to $1,000.
Must File Returns
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 fraud
rlent return. 100 per cent would be added
to the tax assessed, and any person re-
quired to make. render sigh, or verify
such return. who makes false or fraud
ulent statement, with intent to defeat or
evade the tax, will be guilty of nlisde-
meanor, and subject to fine of not more
than 5000, or Imprisonment for one year.
or both.
An extension of 30 days from March
in case OF sickness or absence may be al
loved by the proper collector. provided an
application Is made by the individual con-
cerned Returns must be accompanied by
oath or affirmation.
Expenses for medical attendance, store
accounts. family supplies. wages OF do
mestic servants. cost of board. room or
house rent shall not be deducted from
gross income, and individuals who own
their own residences cannot deduct the
estimated value Of the rent.
Requirements of Farmer
The farmer is required to include in his
net income all money from produce and
arimals sold, for wool and hides OF
slaughtered animals. provided they are
sold. He may deduct the sums actually
raid 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 raid as expenses for producing
farm products. live stock. etc, and for
repairs for the current year. The cost
of tools or machinery is deductibie.
|. Persons receiving fees or emoluments
for professional or other services must
include all actual receipts for services
during the year, together with all unpaid
8 cco UNITS. charges for service or contin-
gent incoIHe lOT tne ycdtt IL Soou ana
oollectible.' ~
/ Debts contracted within a current year
may be deducted from gross income, whom
found worthless. but not before legal pro-
cee6ings have proved unavailing. Debts
contracted in previous years, which
eventually prove worthless. may be de-
Quoted subsequently under the head Of
losses when they are charged OFF.
Amounts due or accrued to individual
members Of a partnership from net earn
inGs shall be included In the return OF the
individual whether distributed or not, and
Urited States pensions must be included
as income. Estimated advance of real
este.e value is not required to be -e-
ported unless placed as an asset on the
individuals books. Costs Of suits and
other legal proceedings arising out of or
dinsry business may be treated as ex-
pense and deducted from gross income of
a business
IT. computing net income compensation
OF oil Offices and employees Of a state or
any political subdivision thereof shall be
excluded but not where paid by the
United States
Receivers Favor Payment