The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1918-01-11
Those Subject to Income
Taxes Must Fill Out Blanks
at Stated Time.
PENALTIES ATTACHED
Details Governing New War
Measure Passed at Extra
Session Congress.


every unmarried verson in the
United States receiving an income
above $1,000. and above $4,000 if mar
ried, shall make return to Uncle sam
imposed in the several income tax
laws.
The penalty for falling to file re-
turns on or before March ! is 50 per
cent of the amount of the tax and n
fine not exceeding $1,000: IL n fraud
ulent return is made. Il $4,000 fine or
imprisonment for not over q year. or
both.
Under the individual income tax
law II is possible to begin soon TO
make out the returns, the blanks for
which will be available in any inter-
nal revenue office or in banks. which
Will give Il helping hand to clients
What Is "Invested Capital"
The internal revenue bureau has
cleared the atmosphere considerably
as TO the making of returns by the
great mass of business men, but as to
the larger establishments there sim
remains an Interpretation Of just what
invested capital" is. This, OF course.
Is most important to every establish
ment doing Il big business. and con-
gress may have To take n hand later
in determining what it meant as to
this particular phase. Naturally, it Is
not possible to get blanks printed for
returns until what constitutes in
vested capital is defined.
But to the immense majority OF
business men In Montana. there have
been handed down rulings that will
enable them to know just where they
stand. These rulings will exempt
hundreds Of these men from paying
the war excess profits tax, although
they Will be amenable to the indiyid
ual income tax for all incomes above
1900 If they are heads of families.
Partnerships and Corporations.
a one man firm or partnership
having n net income Of less than
$4,000 Will be free from war excess
profits taxes. This will apply to all
sorts OF businesses in Montana.
In case of an Incorporated firm.
the excess profits tax win be based
upon a net income in excess of $4,000
less sLys $4,000 than In the first -NNse
There VIII be in addition TO this ex-
emption deduction of at least Der
cent on invested capital
In both partnership and incorpora =
tons reasonable salaries paid TO the
partners for services actually rem
dered by them may also be deducted.
ha 10 n@t
ly paid ia similar lines Of business.
Deductions are likewise allowed of
amounts paid during the year 10 an
individual partner as interest upon a
bona fide loan.
Intangible property" as used In re- :
gard to invested capital. has been
construed to mean property similar to
good will. trade marks. etc. Stocks,
bonds, bills and accounts receivable,
notes and other evidences of indebt.
edness are held TO be tangible prop
crty.
That the government may ba able 10
check up returns. If necessary. every
employer must file a statement show
ing salaries paid of $500 or over. j,
Is just as Important that this return
be made as it Is that the income OF
the employer be given. Every tenant
who pays rent OF $500 or more in any
year MUST file a statement to that Of :
feet, naming his landlord and the
amount of the rent.
Exemptions Allowed.
Married people are permitted to ex :
cmption of 5000 for each dependent
child under eighteen years of age or
for dependent child who Is incapable
of self-support because mentally OF
physically defective.
A married person having net in
come Of $4,000 per year viii pay 2
per cent above $1,000, or $40. II the
net income is $500 there will he an
additional . per cent on the $500:
that Is. the first per cent on s.. 500.
amounting TO $50, and . per cent on
the $500, amounting to $40: n total
OF $50.
Holders Of the first Liberty bonds