Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1918-01-02
No WAY TO EVADE
THE INCOME TAX
EVERY GOOD AMERICAN EARNING
FAIR LIVING WILL HELP TO
PAY EXPENSES OF WAR.
RETURNS DUE BEFORE MARCH
Heavy Penalties Provided for Failure
to File Them--Government Officials
viii Be in Every County to Assist
the Taxpayers.

VIII Be in Every County to ASSIST
the Taxpayers.
Observation-Disclosures / pay an in
come tax?"
That is the questiaI that thousands
of Americans are asking. The answer,
in general way, lies in this state
ment:
Every unmarried person having a
net income of $1,000 or more, and ey-
cry married person or head of fam
lily having an income of $1,000 or more
must file 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
and March l, 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.
less certain deductions provided for by
the act. The law defines income as
profit, gain, wages, salary, commits
sions, money or it's equivalent from
professions, vacations, commerce,
trade, rents, sales and dealings in prop
efty, 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 or
executor; from dividends, pensions,
royalties, or patents, or oil and gas
wells, coal land, ETC., are taxable.
Normal Rate Is Per Cert.
The normal rate of tax is 2 per cent
on net incomes above the amount OF
exemptions, which is $4,000 in the case
Of q married person or head Of 4 fam
lily and $1,000 in the case Of single
person. A married person or head of
4 family is allowed an additional ex-
enption Of $500 for each dependant
child if under eighteen years Of age
Or incapable Of self-support because
defective. The taxpayer is considered
10 be the head Of 4 family II 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 il based On some moral
or legal obligation asc%3 -! -"
Debts ascertained to be worthless
and charged off within the year and
taxes pald except income taxes and
these assessed against local benefits
ars deductible. These and other points
q the income tax section Of the war
revenue act will be fully explained BY
revenue officers who will visit every
county in the United States between
January : and March to assist tax
payers in making out their returns.
oniesrs 70 Visit Every LEGALITY.
Notice Of their arrival In each local
III Will 10 given in advance through
tie press, banks and post Offices. They
will be supplied with tseoms tax forms
copies Of which may " Obtained alss
fsso cellsetors Of Internal revenue.
TIE bureau Of internal revenue -
seeking to impress upon persons sub
ject to the tax the fact that failure to
w. this oflcial in NO way relieves
hem sf the duty imposed by law 70
lie their returns within the time spsci-
led.
The government 10 not required to
,sek the taxpayer. The taxpayer 10
required to seek the government. Per
IONS in doubt as to whether they are
Iubject to the tax or not or rs to how
o make out their returns, will readily
therefore, that q visit to
his official may mean the avoidance
4 later difficulties.
The penalty for failure to make the
'eturn on time is a fine Of not less
han $50 nor more than $1,000, and
q addition so per cent Of the amount
4 the tax due. For making false
Y fraudulent return, the penalty il
fine not to exceed $4,000 or not ex-
eeding one years imprisonment, or
10Th, in the discretion Of the court, and
a addition 100 per cent Of the tax
vaded.
A. to the Farmers.
The number Of farmers who will pay
acOme taxes has not been estimated
y the government officials, but 1t IL
ertain they will form a large percen-
age of the 100000 persons assessed
,ho never before have paid an income
AZ. The average farmer does not
eep books but if he avails himself Of ,
he services Of government experts
tho will be sent to aid him, 1t will not ,
e difficult for him to ascertain the
mount of his net income.
The farmer is making out his return
lay deduct depreciation in the value
Z property and machinery used in the
onduct of his farm, and loss by fire,
torn or other casualty, or by theft if
OF covered by insurance. Expenses
incurred in farm operation
lay be deducted, but not family or liv-
II expense. Produce raised on the
arm and traded for groceries, wearing
pparel, etc.. Is counted as living ex-
enditures and cannot be deducted.
Salaries paid by the state or polit-
nj subdivision of the state are ex-
npt. A farmer holding the job Of
ounty supervisor, for instance, does
OF have to include his salary In his IL
one tax return.