The herald-advance. (Milbank, S.D.) 1890-1922, 1918-01-04
MUST YOU PAY TAX
ON YOUR INCOME?
Matter That Every American Is
Called On to Determine
Without Delay.
MARCH LIMIT FOR RETURNS
T allure to File Them Involves Severe
Penalties-Taxpayers Will Be As
sisted by Treasury Officials in
Every County.

Washington.-Thc time has arrived
for every American subject to the in
come tax division Of the war revenue
act 10 figure up his income and file
his return. If he is unmarried aud
has q net income Of $1,000 or more. or
If he IS married or the head Of a fam
lily and his net income is $1,000 or
more. he must pay the tax. His re-
turn must be in the hands OF the col
lector of internal revenue in the dis
lrict in WHICH the taxpayer lives or
has his principal place OF business be-
fore March ], 1918.
The man vino thinks to eyade this
tax is making Il serious error. Revenue
officials will be in every county to
check returns Failure tO make q cor
rect return within the time specified
involves heavy penalties.
Net income" mean gross inconlc
less certain deductions provided for by
the act. The law defines income IN
profit, gain, wages, salary. consnls-
sions. money or it's equivalent from
professions. vOcatiOns. commerce.
trade, rents. safes 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 10 2 Per Cent.
TIE Dorlnal rate OF tax is 2 per cen
on net incomes above the amount Of
exemptions, which is $1,000 in the case
of a married person or head OF a fam
lily and 81 Loo in the case Of a single
person. 4 married person or head Of
u family is allowed All additional ex-
emption of 500 for each dependant
child il under eighteen years OF Z
or incapable of self-supp0rt because
defective. The taxpayer is considered
To be the head of a family if he is
actually supporting n or more per-
sons closely connected with him by
blood relationship or relationship by
marriage, or II his duty to support
such person is based on some moral
or legal obligation.
Debts as%certained to he worthless
and charged of within the year and
taxes paid except income taxes n
those assessed against local benefits
are deductib!e. These and other points
Of the income tnx section of the war
revenue act will be fully explained by
officers who will visit every
county in the United States between
January > and March | to assist tax
payers in making II their returns.
Officers to Visit Every Locality.
Notice of their arrival in each local
will be given in advance through.
the press, banks and post Offices. They
will be supplied with income tax forms
of which may be obtained also
from collectors Of internal revenue.
The bureau Of internal revenue is
to impress upon persons sub
ject ia 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 sped-
fed.
The penalty for failure to make the
on time is a fine Of not less
than $40 nor more than $1,000. and
in addition 80 per cent Of the mount
OF the tax due. For making a false
fraudulent return, the penalty Is
a fine not to exceed $1,000 or not ex-
one years Imprisonment. or
both, in the discretion of the court. and
in addition 100 per CEN Of the tax
As to the Farmers.
The number of farmers who will pay
taxes has not been estimated
By the government officials, but 1t Is
they will form "A large percen-
tage of the 8.OOO.O0O persons assessed
who never before have paid an income
AK. The average farmer does not
keep books but If he avails himself of
he services Of government experts
who will be sent to aid him, it will not
DC difficult for him to ascertain the
mount of his net income.
The farmer is making out his return
nay deduct depreciation In the value
If property and machinery used in the
conduct Of his farm. and loss by fire.
storm or other casualty. OF. by theft If
Tot covered by insurance. Expenses
incurred in farm operation
may be deducted. but lot family or liv-
ng expense. Produce raised on the
arm and traded for groceries. wearing
apparel, etc, is counted as living ex-
and cannot be deducted.
Pilgrim Got BY.
A sevcn-year-Old was asked by HIS
eacher at the primary school to pro-