McNairy County independent. (Selmer, McNairy County, Tenn.) 1902-1969, 1918-01-11
MUST YOU PAY TAX
. ON YOUR INCOME?
Matter That Every American Is
Called On to Determine
Without Delay.
MARCH | LIMIT FOR RETURNS
Failure to File Them Involves Severe
PenaIties-Taxpayers viii Be AS.
sisted by Treasury Officials In
Every Courty.

Washington.-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 $1,000 or more, or
II he is married or the head of fam
lily and his net income is $1,000 or
more, he must pay the tax. His re-
turn must be in the hands Of the col
lector Of internal revenue in the dis
trict In which the taxpayer lives or
has his principal place Of business be-
fore March 1, 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 AZ
profit, gain, wages, salary, commits.
sions, money or its equivalent from
professions, vocations, 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 OF
executor; from dividends. pensions,
royalties, or patents, or oil and gas
wells, coal land, etc., are taxable.
Normal Rate ID Per Cent
The normal rate of tax is 2 per cent
or net incomes above the amount OF
exemptions, which is $1,000 in the case
of married person or head of fam
lily and $1,000 in the case of single
person. A married person or head of
a family is allowed an additional ex-
emption of 5000 for each dependant
child II under eighteen years Of age
or incapable Of self-support because
defective. The taxpayer is considered
to be the head of 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 tho United States between
January 2 and March to assist tax
payers in making out their returns.
Officers to vlsit Every LseaIlty.
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 alss
from collectors Of internal revenue.
Tho bureau Of internal revenue IL
seeking to impress upon persons sub
ject to tha tax tho fact that failure to
sec this oficial In no way relieves
them Of the duty imposed By law to
file their returns within the time speci-
fed.
The penalty for failure to make the
return on time Is fine Of not less
than $50 nor mere than $1,000, and
In 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 $4,000 or not ex-
ceeding one years Imprisonment, or
both, in the discretion of the court, and
In addition 100 per cent Of the tax
svaded.
A 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 large percen-
tage 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 government experts
who will be sent to aid him, 1t will not
be difficult for him to ascertain the
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 il
not covered by insurance. Expenses
incurred in farm operation
may be deducted. but not family or liv-
ing expense. Produce raised on the
farm and traded for groceries, wearing