New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1919-02-12
DRIVE FOR INCOME
TAX SOON TO COME
DETAILED STATEMENT TO BE
RETURNED BY FUTURE
TAX PAYERS
EXEMPTIONS ONLY FOR 81, 600
AND 1000 INCOMES
DURING 1918

Collector f. j. Lynch has sent out
a circular letter, calling attention to
the income tax collection drive about
to be inaugurated in the near future.
The income tax obligation, says the
circular, imposed by the old law, as
well as by the measure now in congress,
consists Of two distinct operations
One is to file return or statement of all
items of income and items or 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; and
neither of these obligations can be met
without a careful review of income and
expenditures for the tax year.
Forms To Be Distributed.
When the new bill is enacted into
law proper return forms will be dis
tributed throughout the district. and
everybody will be informed OF the date
when the sworn return must be fled.
1t is the plan Of the collector to send
his men out to central locations and
to have them travel through the dis
trict, aiding tax payers in the prepare
lions of the returns and in deciding
doubtful points.
s=G Exemptions, 5 5s B
! Anything that congress does now Will
not affect the amount Of ones earnings
for 1918. Guesses cannot be accepted
as basis of taxation and correct figures
must be compiled. Every unmarried
person who earned 81 900 or over during
the year 1918 and every person, who to-
gether with wife or husband earned
$4,000 or over is obliged to make a
sworn statement of the years income.
This statement must include the gross
income from all sources, including salary,
wages, overtime pay and any bonus
received as additional compensation.
A married man having having children under
18, who are working, must include the
earnings Of such children.
everything IHCluucu.
The return must also include profits
on property sold, rents; interests on
bank deposits, interest on bonds, divi-
dends On stocks, profits on merchan-
disc sold, profits on farm products, fees
for professional services and incomes
from any other sources not particularly
enumerated.
Interest received on municipal and
state bonds need not be included and
interest on liberty loan bonds must
be included only when held in large
amounts.
Deductions Allowed.
There are, of course, certain deduc-
tions from the gross income
Rent, fuel, wages, ETC., taxes, ex-
cept for local improvements, gifts and
requests, certain proceeds of life in
surance, annuities, dividends on unex-
PRED life insurance policies, alimony,
losses in business, in fires, storms or
other casualty, worthless past due ac-
counts, depreciation on property, on
farm machinery and work horses.
A farmer is allowed to deduct from
his total income his expenses Of the year
connected with the planting, cultiva-
ton, harvesting and marketing OF the
crop, but he is not allowed to deduct
the amount expended in 1918 in pur-
chasing stock for resale, but when such
.rtock is resold, its cost is to be deducted
from the sale price, in ascertaining the
gain to be included in his return Of in
come.
A warning against Fake Experts.
on Income Tax has been sounded by the
Internal Revenue Bureau. Business
houses and individual taxpayers are be
ing canvassed this year by numerous
so-called Income Tax Experts !, who
offer to use their magic wands Of Income
Tax wisdom to relieve the busy taxpayer
from all worries about his tax response
bilities. Commissioner Roper says:
desire to make public announce
ment, for the information Of taxpayers
that an investigation of the qualifca.
tons of many Of these experts will
Continued IN page 81 .ss