The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1919-02-27
revenue BILL
CHANGES TAX RATE
MILLIONS OF CITIZENS TRYING
TO SOLVE PROBLEMS OF NEW
REVENUE BILL.
PAST EXPERIENCE NO help
HEAVY PENALTIES IF REPORTS
ARE NOT FILED BY THE
FIFTEENTH OF MARCH.

With the passage of the new Rev.
enue Bill the problem of making out
an income tax return for 1918 is pre-
sented to millions of taxpayers.
Last year the taxpayer had to keep
in mind the provisions of the 1916
and 1917 acts, both of which were
effective. This year he has only one
law to consider. The new Revenue
Bill, however, contains a number of
important changes, with which, in
order to fully comply with the law,
taxpayers must acquaint themselves.
Probably the most important
change affecting individuals is the
rate, the exemption of $1,000 for
single persons and $4,000 for married
persons and heads of families remain
ing the same as under the 1917 act.
The normal rate of tax under the new
act is per cent on the first $4,000
of net income above the exemptions
and IL per cent on the remaining net
income. This applies to every citizen
and resident of the United States.
Alien non-residents of the United
States having property here are taxed
on the income from that property to
the full IL per cent of the normal
tax. For 1919 and subsequent years
the rates are fixed at a and 8 per cent,
respectively. Under the 1917 act the
normal rate was per cent on net in
come in excess of the exemptions.
Under the 1916 act the normal rate
was 2 per cent on the net income of
single persons in excess of $4,000 and
per cent on the net income of mar
ried persons and heads of families in
excess of $4,000. The normal rate of
tax incomes in excess of the ex-
emptions provided for by the 1916
act, therefore, was per cent.
The new bill provides an additional
exemption of 5000 for each person de-
pendent upon the taxpayers for chief
support, if such person is under
eighteen years of age, or incapable of
self-support. Under the 1917 act the
5000 exemption was granted only for
each dependent child of the person
making the return, or when the re-
turn was made by the head of the
family, for each dependent child of
family. A head Of family is one who
supports one or more persons close
ly connected with him by blood re-
lationship, relationship by marriage
or adoption.
The period for filing ends March
18th. The tax may be paid in full at
the time of filing the return, or in
four installments, the first of which
is due on or before March 18th, the
second on or before June 18th, the
third on or before September 18th
and the fourth on or before Deem
Der 18th.
Heavy penalties are provided for
persons who fail or "Willfully re-
fuse" to file their return and pay the
tax within the time specified by law.
For failure to file return the penalty
is fine of not more than 81 900 and
an additional assessment of 20 per
cent of the amount of tax due. For
"willfully refusing" to make return
the penalty is fine of not more than
1000 and one years imprisonment, or
both. A similar penalty of not more
than $4,000 or one years imprison-
ment, or both, and, in addition an
assessment of so per cent Of the
amount due, or making FRAUDULENT
return. Persons who fail to pay the
tax when due are subject to a fine
of not more than $1,000 and an as
sessment of 5 per cent of the amount
unpaid, plus 1 per cent interest Tor
each full month during which it re-
mains unpaid.
Forms for making returns may be
obtained from Offices of collectors OF
Internal Revenue. Taxpayers with in
i comes of less than $4,000 should ask
for Form 1940-A. Those with incomes
of more than $4,000 should ask for
| Form, 10I0