The Twin City star. [volume] (Minneapolis, Minn.) 1910-19??, 1917-12-29
EVERY AMERICAN TO REPORT
PROMPTLY IF He IS SUBJECT
TO TAXATION ON EARNINGS.
PENALTY FOLLOWS FAILURE
February % Last Day On Which Re.
turn Can BE Made-Treasury Of
fieials to Assist Taxpayers In
Every Locality.
Washington, Dec. 31.--"Must l pay

Washington, Dec. 31.-"Must l pay
an income taxi"
That Is the question that thousands
of Americans are asking. The answer
in q general way, lies in this state
ment:
Every unmarried person having
net income of $1,000 or more, and ev-
cry married person or head of fam
lily having an income of $4,000 or more
must file return. These returns must
be in the hands of the collector of In.
ternal revenue in the district in which
the taxpayer lives or has his principal
place Of business between January 1
and March 1, 1918.
The man who thinks to evade this
tax is making a serious error. Revenue
officials will be in every county to
check returns. Failure to make cor
rect return within the time specified
involves heavy penalties.
met income" means gross income
less certain deductions provided for by
the act. The law defines income as
profit, gain, wages, salary, commits
sions, money or its equivalent from
professions, vocations, commerce,
trade, rents, sales and dealings in prop
erty, real and personal, and interest
from investments except interest from
government bonds, or state, municipal
township or county bonds. Incomes
from service as guardian, trustee or
executor; from dividends, pensions,
royalties, or patents, or oil and gas
welis,- coal lard, etc.: are taxabias-sv;-s,--.- s
Normal Rate 10 2 Per Cent.
The normal rate of tax Is 2 per cent
on net incomes above the amount Of
exemptions, which is $4,000 in the case
of a married person or head of fam
lily and $1,000 in the case of single
person. A married person or head OF
a family Is allowed an additional ex-
emption of $500 for each dependent
child If under eighteen years Of age
or incapable Of self-support because
defective. The taxpayer is considered
to be the head of a family II he is
actually supporting one or more per-
sons closely connected with him by
blood relationship or relationship by
marriage, or If his duty to support
such person is based on some moral
or legal obligation.
Debts ascertained to be worthless
and charged off within the year and
taxes paid except income taxes and
those assessed against local benefits
are deductible. These and other points
of the income tax section Of the war
revenue act will be fully explained by
revenue officers who will visit every
county in the United States between
January and March to assist tax
payers in making out their returns.
Officers to Visit Every Locality.
Notice of their arrival in each local
ity will be given in advance through
the press, banks and post offices. They
will be supplied with income tax forms
copies Of which may be obtained also
from collectors of internal revenue.
The bureau of internal revenue is
seeking to impress upon persons sub.
iect to the tax the fact that failure to
this official in no way relieves
them of the duty imposed by law to
file their returns within the time speci-
fed.
The government is not required to
seek the taxpayer. The taxpayer Is
required to seek the government. Per-
sons in doubt as to whether they are
subject to the tax or not or as to how
to make out their returns, will readily
understand, therefore, that a visit to
this official may mean the avoidance
of later difficulties.
The penalty for failure to make the
return on time is a fine Of not less
than $40 nor more than $1,000, and
in addition so per cent of the amount
Of the tax due. For making a false
or fraudulent return, the penalty is
fine not to exceed $4,000 or not ex.
ceeding one years imprisonment, or
both, in the discretion of the court, and
in addition 100 per cent Of the tax
evaded.
As to the Farmers.
The number of farmers who will pay
income taxes has not been estimated
by the government officials, but 1t Is
certain they will form large percen'
tage of the 100000 persons assessed
who never before have paid an income
tax. The average farmer does not
keep books but II he avails himself OF
the services of government experts
who will be sent to aid him, 1t will not
be difficult for him to ascertain the
amount of his net income.