New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1919-01-21
income TAX DRIVE
GAINING MOMENTUM
Collector James ]. Walsh Ex-
plains Working Of Intricate Law

The big Income Tax drive of 1919
is now under way, and every prepara-
ton is being made to handle the
largest collection in the history of IN
come Tax. Il am not waiting for the
hnal passage of the new Revenue
bill by Congress-" said Collector Jam es
j. Walsh today, nor for the new re-
gulations and blank forms to be is
sued. To get this big tax in and get
it accurate and complete, 1 urge that
we ali begin now.
THE income tax obligations i'm
posed by the old laws as we'll 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 the tax, if any is due.
Neither of these obligations can
be met without a careful review of
income and expenditure for the tax
year. That is the big Job right now.
and that. is why I say the Income
Tax drive is already under way.
Everywhere the pencil is busy. The
old year is done; all its fruits are
CLEANED: and every person who Jared
well, or earned a good competence,
must analyze his own case in cold
figures.
when the new bill is enacted into
law, ] will have the proper return
forms distributed throughout the Dis
trict, and everybody will be informed
of the date when the sworn return
must be filed. IT is my plan to send
my men out to central locations, and
to have them travel through the Dis
trict, aiding taxpayers in the prepara-
tiOns of the returns and in deciding
doubtful points. We will go right to
the people with the Income Tax, and
with the cooperation which the pub
lie 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 patrio-
tic duty toward the governments sup
port.
Public Must Get Busy Now.
Meanwhile, let me say again, there
is no need Of delaying the prepare ton
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
taxation. 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 1919 was a banner year
FOR salaries and wages and the high
war prices brought unusual profits to
the average small tradesman and to
IN 60
ington is that million citizens and
residents will make this year their
first income tax returns.
'tAll signs indicate that the income
tax this year will reach nearly every
working man and woman, and nearly
every merchant, shopkeeper and farm,
err. Not all will have to pay the tax,
but nearly all will be obliged to make
a sworn statement of the years in
come.
I am therefore advising every un-
married person who earned $1,000 or
over during the year 1918, and every
married person who earned 81 900 or
wife or husband, earned $4,000 to
sharpen his pencil and figure out how
he stands.
What One Must Do.
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 / s who
are working should include the earn
gs of such children.
eff he sold any property at a profit
the gain must be computed and in
Guided in gross income. If he rented
any property to other persons, the
total rents received in the year must
be ascertaineG, and from that figure
a deduction may be taken for taxes
paid on rented property, the necessary
minor repairs, fire insurance, any in
terest he may have paid on mortgage
and a reasonable allowance for annual
wear and tear of the rented property
The balance is included in gross in
come for the year.
Interest on bank deposits whether
Withdrawn or added to his bank
balances, must be included in all cal
culations of Income. Bond interest
received during the year must also
be included, except interest on NUM- |
cipaI county or state bonds. Interest
on United States Bonds need not be
included by the ordinary. bond holder |
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 applying |
to tax on such interest.
Dividends on stock shares are in !
come, and must be included in the /,
gross figures, although the law does !
not impose tho normal tax on distri- |
butionsnlade by domestic corporations. |
Anyone buying and selling mer- |
chandise must find 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 wear !
and the purchases of goods on hand !