The Tupelo journal. (Tupelo, Miss.) 1876-1924, 1918-01-11
MUST YOU PAY, TAX
ON YOUR INCOME?
Matter That Every American II
Called on to Determine Without
Delay. March Limit for
Returns.

Washington.-Th time has arriv-
ed for every American subject to the
income tax division Of the war rev.
enue act to figure up his income and
file his return. If he is unmarried
and has a net income of $1,000 or
more, or if he is married or the head
Of 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, 1913.
The man who thinks to evade this
tax is making serious error. Rev
enue officials will be in every county
to check returns. Failure to make
correct 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, com
missions, money or it's equivalent
from professions, vocations, COM
merce, trade, rents, sales and deal
ings in property, real and personal,
and interest from investments ex-
cept 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 z Per Cent
The normal rate of tax is 2 per
cent on net incomes above the
amount of exemptions, which is ST.
900 in the case of married person
or head of family and $1,000 in
the case Of single person. A mar
ried person or head of family is
allowed an additional exemption of
5000 for each dependant child if un-3
~ 1t eiglstssa wears of age OF mcaps
BILE of self-support because defective.
The taxpayer is considered to be
the head of a family if he is actually
supporting one or more persons close
ly connected with him by blood re-
lation ship or relationship by mar
riage, 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 ex-
planned by revenue officers who will
visit every county in the United
States between January 2 and March
II to assist taxpayers in making out
their returns.
Officers to Visit Every Locality.
Notice of their arrival in each To-
cvality 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
ject to the tax the fact that failure
to see this official in no way relieves
them of the duty imposed by law tol
file their returns within the time
specified.
The penalty for failure to make
the return on time is a fine of not
less than 500 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 ST.
600 or not exceeding one years i'm
prisonment, or both, in the discretion
of the court, and in addition 100 per
cent of the tax evaded.
As to the Farmers.
The numbers of farmers who will
pay income taxes has not been esti-
mated by the government officials,
but it is certain they will form large
percentage Of the 100000 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 govern
ment experts who will be sent to aid
him, it will not be difficult for him to
ascertain the amount of his income.
The farmer in making out his re-
turn may deduct depreciation in the
value Of property and machinery
used in the conduct Of his farm, and
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