The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1919-03-07
INCOME TAX
RETURNS FOR
1918 ASKED
Passage of New Revenue Bill!
Puts Problem Up to Millions
Not Before Affected
RATE IMPORTANCE CHANGE
Exemption of $1,000 for Singles
and $4,000 for Doubles Re-
mains as Last Year

With the passage of the new revC.
nue. bill the problem of making out an
income tax return for 1918 is present
ed to millions OF taxpayers.
Last year the taxpayers had to keep
in mind the provisions Of the 1916 and
1917 acts. both of which were effec
tive. This year he has only one Law
to consider. The new revenue bill
however, contains a number Of i'm
portant changes, win which, In order
fully to comply with the law. taxpay
ers must acquaint themselves.
Probably the most Important cha 1ge
affecting individuals is the rate, the
exemptions OF $1,000 for single per
sons and $4,000 for married persons
and heads Of families remaining the
same as under the 1917 act The nor.
NAL rate of tax under the new act is
per. cent on the first $4,000 of net
income above the exemptions and ~
per cent on the remaining net income
This applies to every citizen and resi-
dent OF the United States. Alien non
residents Of the United States having
property here are taxed on the in
come from that property to the full
IL per cent of the normal tax. For
1919 and subsequent years tHe rates
are fixed at and s per cent, re
spectively. Under the 1917 act the
normal rate was 2 per cent on net in
comes in excess of the exemptions.
Under the 1916 act the normal rate
was was 9 per cent on the net income
of single persons in excess of $3,ODS
and 2 per cent on the next income OF
married persons and heads of families
in excess of $4,000. The normal rate
Of tax on incomes in excess of the OK
emptions provided for by the 1916 act
therefore. was per cent.
=, The new bill provided an addition
al exemption of $500 for each person
! dependent upon the taxpayer fol
chief support, if such person is un
able of selfsupport. Under the 1871
act the $4,000 exemption was grant
cd only for each dependent child 0
the person making the return, O.
/ when the return was made by tn
head of a family for each dependen
child of family. A head. of famil.
is one who supports one or more pei
sons closely connected with him b.
blood relationship, relationship b.
marriage or by adoption. ~
The period for filing ends Marc.
u.s. The tax may be, paid in full a
I the time Of filing the return, or in f)u
Einstallments, the first of which IS du'
on or before March Is, the second OF
or before June Is, the third on or be
fore September ID, and the: fourth OF
or before December 15.i = E5 l,.G J.
tHeavy penalties are provided TO
persons who fail or "wilfully refuse
to file their return and pay the ia!
within the time specified by law. Fail
ure to file a return the penalty is
fine of not more than $1,000 and al
additional assessment of 25 per cen
of the amount of tax due. For Evil
fully refusing to make a return tn
penalty is fine of not more thai
$4,000 or one years Imprisonment
or both. A similar penalty is provid
ed for making a fraudulent return, and
in addition, an assessment of so pc
cent of the amount due. Person
who fail to pay the tax when due ar
subject to fine of not more than ST
900 and an assessment of per cen
Of the amount unpaid. plus per cen
interest for each full month durin
which 1t remains unpaid.
Forms for making returns may b.
obtained from offices of collectors q
internal revenue. Taxpayers with in
come of les sthan $4,000 should as
for Form 104OA Those with income
of more than $4,000 should ask TO
Form 104H