American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1918-12-03
WHAT IS YOUR NET INCOME9
Tax Slackers viii Be Checked Up BY
the Government.

m must make an income IA
return to the United States early in
present year. While changes in the
revenue measure are still pending in
Congress. it matters not what these
will be insofar as making a return is
concerned. That must be done by
practically every farm operator, own
er or renter. And those who may find
their income insufficient to contribute
a portion of it to Uncle Sans Golfers
will. nevertheless. have to be in shape
to show their financial condition in
figures. The point is, no farmer is
safe unless he keeps an account of
his operations. This holds regardless
of the minimum income figure to be
fixed in the amended revenue law.
Some system of farm accounting is
absolutely essential these days, when
the lack of system may cause the
farmer to get in trouble with the In
ternal Revenue collector.
This applies, of course, to citizens
of all classes. and not to farmers
alone. The wage Garner in town, or
the city business man, finds 1t much
easier to figure out whether he has
any income tax to pay. because his
income, if a wage Garner, is on a fix
ed monthly or yearly basis, or If a
merchant, he is already keeping books
on all items. With the farmer the
keeping of accounts is not the rule
but the exception. A great majority
of farmers do not know whether they
are making money or not. because
their method of keeping account of in
come and outgo is temporary or hap
u a ~ r1 1nn1ufno nophonca+n tho i'm
nortant transactions only. and not to
the everyday business of the farm.
However. since the passage of the
income tax law, which went into eff
feet about q year ago practically
every farmer has made the discovery
tiat this free and easy way Of book
keeping viii not work. He has been
forced. by his country's call for more
revenue. TO mako @ more systematic
rocord of his operations. Many farm.
ors are doing this now. others have
~Hnoeed TO slim thru so far without
fr5ing the necessary precautions. but
word comes from Tho Internal Reve-
-re department or tho United States
.ov. ~nment that There win be q more
~fncen| application of The law i'm
1910. Tav siackers win bo hunted
down with the persistence for which
Uncle SAINTS revenue service i- noted
rrroranoa of the. lew or failure to
1c+rallv know whether orr not q per-
.or has taxable income win NOT abb
solve one From the penalties provided
'or the violator. The lesson I'm This
rs To ne nrc0ared by procuring q good
evstem Of farm accounting that will
enable the farmer to make truo am
swer TO -he revenue officer. The fol-
lowing blank furnished by the United
States Treasury Department contains
fhe items of income and deductions
ON which the farmer must he posted.
TREASURY DEPARTMENT.
INTERNAL REVENUE SERVICE.
FARMERS INCOME
Cash received from farm crops s.
! Cash received from sales of stock ...-
Cash received from rents-- .--
Cash received from interest
Cash received from corporation
dividends - .--......- .....-
Cash received from sale of land -.....
Value March I. 1913. or cost if
purchased since. S..-.....)
Cash received from other sources -
Total ..---.-- ---------- -
DEDUCTIONS
Paid for business expenses -
Paid for interes. O.. ..-....-- 10000
Paid for taxes .-.--.....-...-.-.. .------
Paid for live stock-----...-.-..- ..--.-
Depreciation on machinery and
improvements $4,000. ------.- -- .---
Cost of machinery, S...---)
(Cost of improvements, $.--.-)
Total ...--.. .--.-..-.- ..----.----S -------
Western Farm Life is prepared TO
advise its readers in regard to income
tax matters and to put up questions
to the Internal Revenue officers for
reply. BY December LIST it is hoped
that the amendments to the law will
have been provided for, so that more
definite announcement can be made
as to the exemption figures. Last
year only those heads of families hav-