Middletown transcript. [volume] (Middletown, Del.) 1868-current, 1918-01-05
|NO WAY TO EVADE
| THE INCOME TAX
AMERICAN EARNING
FAIR LIVING WILL HELP TO
PAY EXPENSES OF WAR.
RETURNS DUE BEFORE MARCH
Heavy Penalties Provided for Failure
to File Them-Goxernnent Officials
will Be in Every County to Assist
the Taxpayers.

to File Them-GoNernmen Officials
Will Be in Every County to Assist
the Taxpayers.
Observation-Disclosures I pay an in
come taxi"
that is the question that thousands
of Americans are asking. The answer,
in a general way. lies in this state
ment:
Every unmarried person having a
net income Of $1,000 or more. and ev-
ery married person or head OF a fam
lily having an income OF $2.OOO or more
must file a 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 l
and March 1, 1918.
The man who thinks to evade this
tax is making 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 IRON
professions, vocakions, commerce.
trade. rents, sales and dealings in prop
erty, real and personal, and interest
from investments except interest from
government bonds, or state, munlclpal
township or county bonds. Incomes
from service rs guardian, trustee OF
executor: from dividends. PENSIONS
royalties, or patents, or Gil ana gus
wells, coal land, ETC., are taxab1e.
Normal Rate Is Per Cent.
The normal rate of tax is per cent
on net incomes above the amount OF
exemptions, which is 5000 IN the case
of married person or head OF fam
liz and $1,000 in the case OF single
person, A married person or head OF
a family is allowed an additional eA-
enption of 5000 for each dependant
child if under eighteen years OF age
or incapable Of self-support because
defective. The taxpayer is considered
to he the head Of a family If he IS
actually supporting one or more per
! SONS closely connected with him by
blood relationship or relationship ny
"-"-.ricge. or if his duty to supper.
such person is based on some moran
or icSa! obligation.
| Debts ascertained to be worthless
and charged off within the year anu
taxes paid except income taxes ana
those assessed against local oenents
ere detlucfible These and other polhts
If the income tax section of the war
revenue act will he 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
iect 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 government lie 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 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 $50 nor more than $1,000. ana
in addition 50 per cent Of the amount
Of the tax due. For making raise
cr fraudulent return. the penalty IL
q fine not to exceed $1,000 or not ex-
.eed;ng one years Imprisonment. or
10th. in the discretion of the court. ana
in addition 100 rer cent OF the ta1
evaded.
As to the Farmers.
The number of farmers who Will pay
income taxes has not been estimated
nv the government officials, but 1t Is
certain they will form large percen'
tace of the 100000 persons assessed
who never before have paid an income
tax. The average farmer does not
keep books but II he avri!s himself Of
the services Of government experts
who will be sent to aid him. it will moi
he difficult for him to ascertain the
amount of his net income.
The farmer is making out his return
NAV 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 Nv
ing expense. Produce raised on the
farm and traded for groceries, wearing
| apparel, ETC., is counted as living ex
: penditures and cannot be deducted.
: Salaries paid by the state or Il polit'
ical subdivision Of the state are ex
empt. A farmer holding the job Of
. county supervisor. for instance. doea
, not have to include his salary in his In
come tax return.
Little Willie eoIo.
=.