Montpelier examiner. [volume] (Montpelier, Idaho) 1895-1937, 1918-01-04

NEUTRALITY-SUSPICIOUS. pay an In
come taxi"
That is the question that thousands
of Americans are asking. The answer.
In a general way, lies in this state
ment:
Every unmarried person having
net income of $1,000 or more, and ev-
cry married person or head of fam
fly having an income of $1,000 or more
must file a 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 q serious error. Revenue
officials viii be in every county to
check returns. Failure to make cor
rect 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, 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 or
executor; from dividends, pensions,
royalties, or patents, or oil and gas
wells, coal land, ETC., are taxable.
Normal Rate Is Per Cent
mi tr,O a1N
on net incomes above the amount of
exemptions, which is So 600 in the case
of a married person. or head of fam
lily and ST 900 in the case of a single
person. A married person or head of
a family is allowed an additional ex-
emption of 5000 for each dependant
child If under eighteen years of age
or incapable of self-support because
defective. The taxpayer is considered
co be the head of a family IL 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 Eection of the war
revenue act viii be fully explained by
revenue officers who wifi visit every
county In the United States between
January and March 1 to assist tax
payers in making out their returns.
a. Nf@f& a a~aIi@u
Notice of their arrival in each local
lty 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 IL
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 tc
ale their returns within the time speci
hed.
The government is not required tC
seek the taxpayer. The taxpayer Ii
required to seek the government. Per
sons In doubt as TO whether they ara
subject to the tax or not or as to how
to make out their returns, will readily
understand. therefore, that visit t.
This official may mean the avoidance
Of later difficulties.
The penalty for failure to make tbs
return on time is d fine of not les'
than $50 nor more than $1,000, ant
in addition so per cent of the amoun
or the tax due. For making a falst
or fraudulent return, the penalty |!
fine not to exceed So, 600 or not ex
eeeding one years Imprisonment, Of
both, In the discretion of the court. anS
in addition 100 per cent of the tai
evaded.
A. TO the Farmers.
The number of farmers who will pa!
income taxes has not been estimated
by the government officials, but 1t Il
certain they will form n large percen
tage of the 100000 persons assessed
who never before have paid an incom,
tax. The average farmer does no
keep books but If he avails himself o
the services CT government experts
who will be sent to aid him, 1t will no
he difficult for him to ascertain thu
amount of his net income.
The farmer Is making out his return
may deduct depreciation In the valu'
OF property and machinery used in tn
conduct of his farm, and loss by fire
storm or other casualty, or by theft 1
not covered by insurance. Expense
actually incurred In farm operation
may be deducted, but not family or Iiv
Ing expense. Produce raised on tn
farm and traded for groceries, wearing
apparel, etc, is counted rs living ex
penditures and cannot be deducted.
Salaries paid by the state or polit
teal subdivision of the state are ex
empt farmer holding tae job o.