Gilpin observer., 1918-01-03
MUsI file RETURN
ALL SUBJECT TO INCOME TAX
REQUIRED TO SUBMIT STATE.
MENTS BY MARCH 1.
HEAVY PENALTY FOR FAILURE
Returns viii Be RigidIy Checked and
Assistance Given Taxpayers by OF.
fcials In Every county-Tips
to Farmers.

Washington.-All good Americans
who are making fair living are now
called upon to pay, in the way of an
income tax, their share of the cost of
the war. Whether or not he is SUBJ
ject to this tax is the question every
man must settle at once In a few
words this is the answer: Every un-
married man whose net income Is ST.
600 or more and every married man or
head of a family whose income is $2,-
600 or over must pay the tax Before
March 1, 1918, he must file his return
with the collector of internal revenue
in the district in which he lives or has
his principal place of business.
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
Net income" means gross income
less certain deductions provided for by
the act. The law defines income as
profit, gain. wages, salary, commits
stons, money or its equivalent from
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
81 of fa
Normal Rate Is 2 Per Cent.
The normal rate of tax is per cent
on net incomes above the amount of
exemptions, which is $1,000 in the case
of a 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-
child if under eighteen years of age
or i--capable 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 the United States between
January and March 1 to assist tax
payers in making out their returns.
Officers to Visit Every Locality.
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 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 to
file their returns within the time speci-
fed.
The government is not required to
seek the taxpayer. The taxpayer Is
required to seek the government.
The penalty for failure to make the
return on time is fine of not less
than $50 nor more than $1,000, and
in addition 80 per cent of the amount
of the tax due. For making a false
or fraudulent return, the penalty is
n fine not to exceed $1,000 or not ex-
ceeding one years Imprisonment, or
both, In the discretion of the court, and
in addition 100 per cent of the tax
evaded
AS 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
amount 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 II
not covered by insurance. Expenses
actually incurred in farm operation
may be deducted, but not family or liv-
ing expense. Produce raised on the
farm and traded for groceries, wearing
oppnrp1 ORC fc countpd nc living ay.
penditures and cannot be deducted.
Take the Short Route.