The Mankato free press., 1919-01-31
DOLLARS FOR SAMUEL
BIG INCOME TAX DRIVE Is
NOW BEING CONDUCTED
Those Who Are Drawing Salaries
Should Figure Debt to the
Government

The big income tax drive of 1915
IS now under way, ard every prepa-
ration is being made to handle the
largest collection in the history of
income tax Il am not waiting for
the final passage of the new revenue
bill by congress-" said Collector
Lynch today, nor for the new regu-
lations and blank forms to be issued.
To get this big tax in and get it ac-
curate and complete, / urge that We
all begin now"
"The income tax obligations i'm
posed by the old laws, as well as the
measure row in congress, consists of
two distinct operations. One is, TO
file return or statement of all items of
income ard items of deductions al
lowed by law, ard to do this within
the period named in the law. The
other is, TO pay the tax, il any is due.
Neither of these obligations can
be met without a careful review of
income ard expenditure for the tax
year. That is the big job right now,
and that is why / say the income tax
drive is slready under way. Every
pcHCli Is DuSI. Olu
year is done: all its fruits are CLEAN
ed; and every person who Jared well,
or earEed a good competence. must
analyze his owE case in cold figures.
when the new bill is enacted in
to law, will have the proper return
forms distributed throughout the dis
trict, and everybody will be inform
ed of the date when the sworn re-
turn must be filed. II is my plan to
send my men out to central locations
and to have them travel through the
district, aiding taxpayers in the prep
aration of the returns and in decid-
ing doubtful points. We will 60 right
20 the people with the income TAX,
and with the cooperation which the
public can give the government men,,
the returns will be filed by every =
body who comes under the laws pro-
visions, the right taxes will be paid,
and the district will have done its
full patriotic duty toward the gov
ernment's support.
No Need of Delay
Meanwhile, let me say again, there
is no need of delaying the prepara-
tion of figures. Anything that con-
gress does row will not affect the
amount of persons earnings for
1918. Let us avoid the belated throw
ing together of figures that may hit
or miss. Guesses cannot be accepted
as the basis of taxation. 1t is clearly
the duty of every person to compile
correct figures ard ascertain whether
his income for 1918 was sufficient to
make necessary a sworn return.
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 oblig-
ed to make sworn statement of the
years income.
Sharpen Your Pencil
Il am therefore advising ev0~" IN
married person who earr"d $1,000 or
over during the yec- 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
is his salary or wages, including
overtime pay ard any bonus re-
ceived as additional compensation.
A married person having children
under eighteen who are working
should include he earnings of such
children.
''If he sold any property at profit.
fit, the gain must be computed and
included in gross income. If he rent
ed 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 neces~
sary miror repairs, fire insurance,
any interest he may have paid on
mortgage, and a reasonable allow
ance for annual wear and tear of the
rented property. The balance is in
cluded in gross income for he year.
Interest on Bank Deposit
Interest or bank deposits, wheth-
er Withdrawn or added to his bank
balance, must be included in all cal
culations of income. Bond interest
received during the year must also
be included, except interest on mum
icipal, county or state bonds. Inter
est on United States bonds need not
be included by the ordinary bond
holder who purchased small amounts.
Holders of large amounts of Liberty
bonds, however, should ask their
bankers, to write to my office for the
rule applying to tax on such inter-
Test.
Dividends on stock shares are in
come, and must be included in the
gross figures, although the law does
not impose the normal tax on distri-
buttons made by domestic corpora
tions.
"a person buying aLI selling mer-
chandise must find his pitts for the
year on the fol- wing ba~is: First,
ascertain the groGG sales or total
cash receipts. Then add together
the inventory at the beginning of the
year and the purchases of goods for
resale. From this latter sum usb-
tract the inventory of goods on hand
at the year's end and the result is