Milford chronicle., 1918-01-04

' ~ ." ENS'y SVuUAt
Assist the Taxpayers.
Must ] pay an income taxi"
; That is the question that thousand,
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
any married person or head Of a
family having an income of $4,000 or
more must file a return. These re-
turns 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
between January 1 and March l,
1918.
The man who thinks to evade this
tax is making a serious error. Reve-
nue. oficials will be in every county
to check returns. Failure to make a
correct return within the time speci-
fed involves heavy penalties.
Net incomes" 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. 4
trade, rents, sales and dealings in
property, real and personal, and inter !
est 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 tax.
able.
The normal rate of tax is 2 per cent
On net incomes above the amount OF
exemptions, which is $4,000 in the
'ase of a married person or head Of !
family and $1,000 in the case Of
Jingle person. A married perso7
II head of family is allowed an ad
itional exemption of 5000 for each
dependent child If under eighteen
ears Of age or incapable of self-sup.
ort because defective. The taxDav-
Is considered to be the head Of
'mily If he is actually supporting cna
more persons connected with him
blood relationship or relationship
marriage, or if his duty to SUPPORT
Ich person is based on some moral
legal obligation.
Debts ascertained to be worthless
ID charged off within the wear ana
Ses paid except income taxes ami
Ose assessed against local beneAfs
deductible. These and other
lnts Of the income tax section of the
r revenue act will be fully explain.
oy revenue officers who will visit
Try county in the United States he
sen-january 2 and March to assist
payers In making out their returns
'otice 5or tTeir arrival in each To-
.ty Win be given IN adSRnse II,
1"sI. he press, banks and postof-
3 Ssy will be supplied with in
y YAK ls.orms copies Of which may
rnal revent,o
ne bureau o. internal revenue is
'ins 10 impress upaon persons sub
to the tax the fact thar failure to
this official in no way re,elieves
Of the duty imposed by laS.- to
heir returns within the time snac,s'--
"A
le government is not required to
the taxpayer. The taxpayer is
lred to seek the government. Per
IN doubt as to whether they are
sct TO the tax or not or as to how
axe out their returns, will readily
rstand. therefore, that a visit To
ofhcial may mean the avoidance
ter difficulties.
penalty for failure to make the
on time is a fine of not less
$40 nor more than $1,000, and IN
on 80 per cent Of the amount
taxdue. For making a false
iudulent return, the penalty Il
lOt 10 exceed $4,000 or not ex
lg one years imprisonment or
In the discretion of the court
additi 700 per cent Of the
aided.
number Of farmers who will
leone taxes has not been esti.
oy the governments officials, but
certain they will form a largs
tage Of the 100000 persons
"a VINO never before have paid
ONE tax. The average farmer
OF keep books but if he ayaiIs
Of the services IF government
who will be sent 20 aid hin
not be difficult for him IN a.
.he amount OF his net iuooine
farmer in making cut his re-.
sy deduct depreciation in the
property and machinery ussd
conduct Of his farm. and Ioss
storm or other casualty or
If not covered By Insurance
IS actually incurred in farm
n may be deducted, but not
or living expense Produce
n the farm and traded for
$, wearing apparel, etc. "a n
as living expenditure ana
'e deducted. IN
IS paid by the state or a~no 84
N1rI Nra- .