Five Mile Beach weekly journal., 1919-01-24
Income Tax Information

1.-THE big Income Tax drive of 1919
is now under way, and preparations
made to handlethe largest collection in
the history of Income Tax. ST am not
waiting for the final passage of the new
revenue bill by Congress-" said Col
lector Iredell today, "nor for the new
regulations and blank forms to be is
sued. To get this big tax in and get
it accurate and complete, | urge that
we all begin now"
Income tax obligations imposed by
the old laws, as we'll as the measure
now in Congress, consist Of two dis
tinct operations. One is, to file return
or statement of all items of income and
items of deductions allowable by law,
and to do this within the period named
In the law. The other is, to pay the
tax, if any is due.
"Neither Of these obligations can be
met withoutA careful review of income
and expenditures for the tax year. That
Is the big job right now, and that is
why 1 say the income tax drive is al
ready under way. Everywhere the
pencil is busy. The old year is done;
all its fruits are CLEANED; and every per-
son who Jared well, or earned a good
competence, must analyze his own case
in cold figures.
"When the new bill is enacted In to
law, Twill have the proper return forms
distributed throughout the district, and
everybody will be informed of the date
when the sworn return must be filed.
1t is my plan to send my men out to
central locations, and to have them
travel through the districtI aiding tax
payers In the preparation of the returns
and in deciding doubtful points. We
will 60 right to the people with the in
come tax, and with the cooperation
which the public can give the govern
ment men, the returns will be filed by
everybody who comes under the laws
provisions, the right taxes will be paid
and the district will hove done its full
patriotic duty toward the governments
support.
Meanwhile, let me say again, there
is no need Of delaying the preparation
of figures. Anything that Congress
does now will not affect the amount of
a PERSONS earnings for 1918. Let US
avoid the belated throwing together OF
figures that may hit or miss. Guesses
cannot be accepted as the basis Of tax
alton. 1t is clearly the duty of every
person to compile correct figures and
ascertain whether his income for 1918
was sufficient to make necessary a
sworn return.
"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 Washington
is that a million citizens and residents
will make this year their first income
tax returns.
"AlI signs indicate that the income
tax this year will reach nearly every
working man and woman, and nearly
every merchant, shop keeper and farm
er. Not all will have to pay the tax,
but nearly all will be obliged to make
a sworn statement of the years income.
81 am therefore advising every IN
married person who earned 1000 or
over during the year 1918, and every
married person, who together with wife,
or husband, earned 2 1000 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 overtime
pay and any bonus received as addition
al compensation. A married person
having children under Is who are work.
ing should include the earnings of such
children.
"If he sold any property at a profit,
the gain must be computed and includ-
ed in gross Income. If he rented any
property to other persons, the total
rents received ia the year must be as
cerralned, and from that figure a de-
duction may be taken for taxes paid on
rented property, the necessary minor
repairs, fire insurance, any interest he
may>have paid on mortgage, and a rea-
sonable allowance for annual wear and
tear of the property. The balance i:
included in gross income for the year.
"Interest on bank deposits, whether
withdrawn or added to his bank bal
ances, must be included in all calcula-
tons of income, bond interest received
during the year must also be included,
except interest on municipal, county OF
state bonds. Interest on United States
bonds need not be included by the ord.