Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1915-01-22
PROVISIONS OF
INCOME TAXLAW
Collector David J. William.
Gives Out Instructions for
Guidance Of Public
SHOULD EXERCISE CARE
Failure to Comply With Law
IN Making Returns Is Met
With Heavy Penalties


TACOMA, Jan. 21.--David J. Will
iams, collector Of internal revenue for
the District of Washington, announces
that the forms for income tax returns
for both corporations and individuals
have been revised. showing many
changes over those in use for 1913,
and requiring much more detailed in.
formation from tax payers.
These revised forms will within a
few days have been mailed to every
corporation and individual on the in
come tax list; If the blanks are not
received the collector should promptly
be notified. If there has been a
change of address since the 1918 re-
turn was rendered, note giving the
former address should be attacher to
this years return.
1t is the duty Of every individual
or community consisting of husband
and wife having net income of $4,000
or over for the year. to make a return
thereof to the government on or be-
fore March 1st, 1915, and to apply to
the collector for the necessary blanks
if the same are not received without
application.
Many persons last year incurred IL
ability to specific penalties for fail
ure to file returns on time, owing to
the belief that returns were not re.
quired unless the net income exceed.
ed the specific exemption; this con-
ception was entirely erroneous, and
citizens are informed that returns for
1914 are required in all cases where
the net income amounts to $4,000 or
over. regardless Of the specific ex'
emption Of $4,000 or 1900 to which
the individual may be entitled.
All corporations not specifically ex.
empt are required to make returns
whether they have income or not. The
duty to make return depends upon
corporate or associational existence
and not upon the receipt Of income.
Citizens are requested to read the
directions carefully before attempting
to fill out the blank returns, and to
fully observe all the instructions print.
ed thereon. A compliance with this
request, which should result in re-
turns being correctly rendered in the
first instance, will save corporations
and individuals time annoyance and
expense, as faulty or incomplete re-
turns can not be accepted. Income
tax statements not prima facie in order
will either be returned for correction
or complete amended returns will be
required.
Corporations and individuals alike
are urged not to defer the preparation
and filing of their returns until the
last moment. Liability to specific
penalties will be asserted in all cases
where returns are not received within
the statutory period either by the col
lector at Tacoma or by his deputies
at Seattle or Spokane.
Parties acting in fiduciary capa.
city paying net income Of $4,000 OF
over for the year to any beneficiary
under their trust, should apply direct
to the collector at Tacoma for proper
blanks upon which to make the re-
turn.
The Internal Revenue Bureau has
made important changes in its rulings
on the subject Of returnable income
and deductible losses, which changes
are summarized as follows:
Returnable and taxable income Ii
that actually realized during the year
f. that is. that which is evidenced by
the receipt of cash or its equivalent
Hence. any appreciation in the value Of
assets due to appraisal or adjustment
and taken up on the books Of the in
dividual or corporation Is held not to
be income within the meaning Of the
law until such appreciation, as the
result Of completed, closed trans
action, has been converted into cash OF
it's equivalent, and has been realized
as an addition to and part of the
tangible assets. Likewise, losses are
not actually sustained until as the re-
suit Of completed. closed transac
tion, they have been definitely ascer
tained and the amount they represent
| has irredeemably disappeared from the
assets. sl
In the preparation Of returns to the
government. therefore, mere book en-
tries Of appreciation or depreciation in
the value Of capital assets win be dis
regarded.
This ruling will in NO wise. aifec'
the reasonable allowance for deprecia
ltion. II any" but such Reasonable a
lowance" win be confined to amounts
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