The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1918-01-04
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 Reinforcement Officials
Will Be in Every County to Assist
the Taxpayers.


NEUTRALITY-SUSPICIOUS. 1 pay an In
come tax?"
That is the question that thousands
of Americans are asking. The answer,
in general way, lies in this state
ment:
Every unmarried person having q
net income of $1,000 or more, and ev-
cry married person or head of fam
lily having an income Of $4,000 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 1
and March 1, 1913.
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
siOns, money or it's 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.
The normal rate of tax is per cent
on 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 if 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 the United States between
January and March l to assist tax
payers in making out their returns.
Officers to Visit Every Locality.
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 is
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. Per-
sons in doubt as to whether they are
subject to the tax or not or as to how
to make out their returns, will readily
understand, therefore, that visit to
this official may mean the avoidance
of later difficulties.
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 90 per cent of the amount
of the tax due. For making false
or fraudulent return, the penalty is
a 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 it 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
keen books but if he availS himself OF
the services of government experts
who will be sent to aid him, it will not
be difficult for him to ascertain the
amount of his net income.
The farmer is making out his return
NAV 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
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
apparel, ETC., is counted as living ex
pendtures and cannot be deducted.
Salaries paid by the state or a polit
ical subdivision of the state are ex-
empt. A farmer holding the job OF
county supervisor, for instance, does
not have TO include his salary in his In.
come tax return.