Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1919-01-21
TAX RETURNS MUST % MADE ON
sAs,s or STATUTE m FoRcE
LAST YEAR.
COLLECTOR MURPHY SENDS
WARNING 70 c,TlZEks
No Need OF Delaying Preparation d
Figures 10 Await Enactment o.
Pending Msasurs-lneor,s Tax This
Year TO Reach Many Working Men
and Women.
,ecial to Times Republican.

DuDuVuc, Jan, -I.-Inc DlS lHSoiie
tax drive Of 1919 is now under way,
and every preparation is being made
history OF income tax. II am not
waiting for the final passage OF the
new revenue bill by congress- said
| Collector Murphy today nor for the
new regulations and blank forms to
be issued. To get this big tax in
and get it accurate and complete, |
urge that we all beSin now
The income tax obligations i'm
posed by the old laws, as well as the
measure now in congress consist Of
two distinct operations. One is to
file return or statement of all Items
OF income and items Of deductions al
lowable by law, and to do this within
the period named in the law. The
| other Is to pay tn. tax. il any 10 due.
Neither Of the-e obligations can be
met without careful review Of in
come and expenditure for the tax year.
That is the big JOB right now. and
that is why say tire income tax drive
| is already under way. Everywhere
the pencil Is busy. The old year ia
done: all it's fruits are cleaned: and
every person who Jared we'll. or earned
| a good competence. m, st analyze his
own case in cold figures.
When the new bill is enacted into
law. l will have the proper return
forms distributed turnout the district.
and everybody~w be inf, rmed Of
the date when the sworn ret, IN must
be filed. It is my plan to sind my
men out to central locations. and to
have them travel thru the district,
aiding taxpayers in the preparation
Of the returns and in deciding dou IT
full points We will go right to ire
people with the income tax. and witn
the cooperation which the public can
give the government men. the returns
| will be filed by everybody who comes
under the laws provisions the right
taxes will be paid. and the district
! will have done it's full patriotic duty
toward the governments support.
No Need For Delay.
Meanwhile. let me say again. there
is no need for delaying the preparation
Of figures. Anything that congress
does now will not affect the amount Of
persons earnings for 1918. Let us
avoid the belated throwing together
Of figures that may hit or miss.
Guesses can not be accepted as the
basis Of taxation. 1t is clearly the
duty OF every person to compile cor
rect figures and ascertain whether
| his income for 1918 was sufficient to
| make necessary sworn return.
1.-THE year 1918 was a banner year
| for salaries and wages. and the high
war prices brought unusual profits
| to the average small tradesman and
to the farmer. The opinion in Wash
ington is that million citizens and
residents will make this year their
| first income tax returns.
"All signs Indicate that the income
tax this year will reach nearly every
working man and woman. and nearly
every merchant. shop keeper and
farmer Not all Will have to pay the
tax. but nearly all will be Obliged to
make a sworn statement Of the years
income.
Many Items included.
"I am therefore advising every un-
married person who earned $1,000
or more during the year 1918. and
every married person who together
with wife or husband, earned $4,000
to sharpen his pencil and figure out
how he stands.
He must ascertain accurately his
gross income from all sources. There's
his salary or wages. including over
time pay and any bonus received as
additional compensation. A married
person having children under II who
are working should include the earn
ings OF such children.
II he sold any property at profit
the gain must be computed and in
cluded in gross income. II he rented
| any property to other persons. the
total rents received in the year must
be ascertained. and from that figure
deduction may be taken for taxes paid
on rented property. the necessary
minor repairs, hre insurance. any in
terest he may have paid on mortgage,
and a reasonable allowance for an
nual wear and tear Of the rented prop
erty. The balance is included in
gross income for the year.
Interest on bank deposits. whether
withdrawn or added to his bank
balances. must be included in all CAL
cu!ations of income. Bond interest
received during the year must also be
included, except interest or municipal
county or state bonds. Interest on
United States bonds need not be in
cluded by the ordinary bondholder
who purchased small amounts. Hold
ers Of large amounts Of liberty bonds.
however. should ask their bankers to
write to my Office for the rule apply
ing to tax on such interest.
Dividends on stock shares are in
come, and must be included in the
gross figures. altho the law does not
impose the normal tax on distribu-
items made nv domestic corporations.
Merchants Must Pay On Profits.
"A person buying and selling mer
chandse must ind his, profits for the
year on the following basis: First. as
certain the gross sales or total cash
receipts Then add together the in
ventory at the beginning of the year
and the purchases OF goods for re-
sale. From this latter sum subtract
the inventory of goods on hand at the
years end. and the result Is the cost
of goods sold. This cost. plus neces-
sary expense incurred solely thru con-.
duct Of the business. is to be deducted
from the gross sales. and the result 10
the net earnings Of the business
"A professional man arrives at his
profe ssional income by ascertaining
the total Of fees for services and de-
Quoting therefrom all expenses con-
nected directly and solely with his
practice.