The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1917-12-28
Matter That Every American IL
Called On to Determine
Without Delay.
RETURNS MUST Be FILED
Failure to Act ny March 1st Involves
Penalties-Taxpayers VIII Be As
sisted by Tr&asury Officials In
Every County.

Washington, Dec. 2S.-The time has
arrived for every American subject to
the income tax division of the war
revenue act to figure up his income
and file his return. IL he is unmar-
ried and has net income of $1,000
or more, or If he is married or the
head of a family and his net income
is $4,000 or more, he must pay the
tax. His return must be in the hands
of the collector of internal revenue in
the district in which the taxpayer lives
or has his principal place OF business
before 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 a 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
wells, coal land, etc. are taxable.
Normal Rate Is 2 Per Cent.
The normal rate Of tax is 2 per cent
on net incomes above the amount of
exemptions, which is $1,000 in the case
of married person or head of a fam
lily and $1,000 in the case of a single
person. A married person or head of
family is allowed an additional ex-
emption of 5000 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 IL he is
actually supporting one or more per-
sons closely connected with him by
blood relationship or relationship by
marriage, or IL 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 2 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 SUBJ
ject to the tax the fact that failure to
see this official in no way relieves
them of the duty imposed by law to
file their returns within the time speci-
fed.
The penalty for failure to make the
return on time is fine of not less
than $50 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 win pay
income taxes has not been estimated
by the government officials, but 1t is
certain they will form large percen-
tage of the 6,000,600 persons assessed
who never before have paid an income
tax The average farmer does not
keep books but IL he avails himself of
: the services of government experts
who will be sent to aid him, It win not
be difficult for him to ascertain the
amount of his net income.
The farmer in making out his return
may deduct depreciation In the value
Of property and machinery used In the
conduct OF his farm, and loss by fire
storm or other casualty, or by theft II
not covered by Insurance. Expenses
, actually incurred In farm operation
! may be deducted, but not family or liv.
ing expense. Produce raised on the
farm and traded for groceries. wearing
apparel. etc, is counted as living ex,
penditures and cannot be deducted.
Il