El Nuevo mexicano., 1919-01-30

tax.
II am not waiting for the final pas
sage OF the new revenue bill by con
gress," said Collector Alfred Frandlin
Of the New Mexico district, NOR fol
the new regulations and blank form;
to be issued. To get this big tax il
and get 1t accurate. and complete,
urge that we all begin now.
THE income tax obligations i'm
posed by the old laws, as well al
the measure now in congress, consist
of two distinct operations. One is, tC
file return or statement of all it,
items Of income and items OF deduc
lions allowable by law, and to do this
within the period named in the law
The other is, to pay the tax, II any
is due.
"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. II Is my plan to send
my men out to central locations, and
to have them travel through the dis
| trict, aiding taxpayers in the prepare
| ton 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 done1ts full patriot
ic duty toward the governments sup
port.
meanwhile, let us say again, there
is no need OF delaying the prepare
tiop Of figures. Anything that, CON
gress does now will not affect the
amount of a persons earnings for 1918,
Let us avoid the belated throwing to-
gethor Of figures that may hit or miss.
Guesges cannot be accepted as the
basis Of taxation, 1t is clearly the
duty of every person to compile cor
rect 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 Wash
ihgton is that a million citizens and
residents will make this year, their,
first income tax returns.
ran signs indicate that the income.
tax this year viii reach nearly every
working man and woman, and nearly
every merchant. shop, keeper and far
mer. Not all will have to pay the tax,
but nearly all will be obliged to make
a return of the years income.
III am therefore advising every UNI
married person who earned $1,000 or.
over during the year 1918, and every
married person, who together with
wife 0 husband, earned $4,000 to col
lecd all data as follows:
.'He must ascertain accurately his
gross income from all sources. There
is his salary or wages, including over.
time pay and any bonus received as
additional compensation. A married
person having children under Is who
are working should include the earn
ings Of such children.
IF he sold any property at a profit
the gain must be computed and in
cluded in gross income. II he rented
any property to other persons, the
total rents received in the year must
be ascertained, and from that figure
a deduction may be taken for taxes
paid on rented property, the neces-
sary minor repairs, fire insurance, any
he may have paid on mort
page. and a reasonable allowance for
nnual wear and tear of the rented
The balance Is included In
gross income for the year.
"Interest on bank deposits, wheth-
or 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 municipal,
county or state bonds. Interest on
United States bonds need not be in
cluded 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 apply
ing 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 the normal tax on distribu-
tions made by domestic operations.
"A person buying and selling mer-
chandise must find his profits for the
year on the following basis: First,