The Monticellonian., 1918-01-04
MUST YOU PAY TAX
 ON YOUR INCOME?
Matter That Every American Is Called On to Determine
 ut Delay.
MARCH 1LIMIT FOR RETURNS
Failure to File Them Involves Severe PenaIties-Taxpayers Will Be As sisted by Treasury Officials in
 Every County.

Washinrton.-The time has arrived for every American subject to the in- come tax division of the war revenue act to figure up his income and file his return. If he is unmarried and has a net income of $1 900 or more, or if he is married or the head of a fam ily and his net income is S20O0 or more. he must pay the tax. His re turn must be in the hands of the col leetor of internal revenue in the dis trict in which the taxpayer lives or has his principal place of business be- fore March l, 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.
 Net 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, vacations, 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 Per Cent
 The normal rate of tax is per cent on net incomes above the amount Of exemptions, which is S2O0O in the case of a married person or head of fam ily and $1 ,000 in the case of single person. A married person or head of a family is allowed an additional ex- emption of S200 for each dependant 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 if 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 2 and March 1 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 feet 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 fled.
 The penalty for failure to make the return on time is fine of not less than s20 nor more than S1.000. and Tn addition 30 per cent of the amount of the tax due. For making false or fraudulent return, the penalty is a fine not to exceed 5000 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 a large percen- tage of the 800o,000 persons assessed who never before have paid an income tax. The average farmer does not keep books but If 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.
 The farmer is 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 if 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- pendtures and cannot be deducted.