The Bridgeport times and evening farmer., 1919-02-24
DELINQUENT TAX PAYERS
 TO RECEIVE HEAVY PENALTIE

MT. Bachelor, was your net incoms for 1918 $1,oOO or more?
 MT. Benedict, was your net income for 1918 $2,000 or more?
 If so, you are required to file an income tax return with the collector of internal revenue for the district in which you live on or before March Is. Congress has carefully differentiat- ed between the person who fails and the person who "wilful1y refuses to make a return and pay the tax with | in the time specified by the new reve- nue bill. DeHnQuents of the first class are subject to a fine Of not more than S1.00O. Those of the second class are subject to a fine of not more than $1O,000, or Imprisonment for one year, or both. For making a fraudulent return, the penalty is a fine of not more than $10,00O or i'm prisonment for one year, or both, and an additional assessment of 50 per cent of the amount of tax evaded. For failing to make the return on i time, in addition to the $1,000 fine, there is an assessmglL of 25 per cent of the amount of tax due.
 Taxes may be paid in full at the time of making the return, or in four insta11ments, the first of which is due on or before March Is, the second on or before June Is, the third on or be- fore September Is and the fourth on 1 or before December 15.
 If any installment Is not paid when due, the entire amount becomes due ten days after demand therefor ! by the collector. For failing to pay 1 the tax when due there is a penalty i of per cent of the amount unpaid, 1 plus interest at the rate of l per cent a month during which 1t remains unpaid.
 l Last year income taxes were due l on or before June Is. The Bureau of Internal Revenue Is seeking to em- l phas1ze that this year, to avoid pen alty, the taxpayer must pay at least l one-fourth of his tax on or before March Is.
 i With the passage of the new reve- nue bill the question of how properly to make out an income tax return for 1918 presents itself to millions of tax payers. The answer to this question was obtained from the Bureau of In ternaI Revenue, the governments col ! lection agency.
 i The new revenue bill, as 1t affects 1 individuals, differs materially from ! the War Revenue Act of October 3, ! 1917, and preceding acts. Probably 1 the most important change Is the rate, 1 the exemptions of S1,000 for single persons and $2,000 for married per sons and heads of families remaining ! the same as under the 1917 Act.
 The normal rate of tax under the Act of 1917 was per cent on the net income of single persons in ex- cess of $1,0o0, and 2 per cent on the net income of married persons and heads of families in excess of S2,0oO. | Under the 1916 act the normal rate of tax was per cent on the net in i come of single persons in excess of i S3,00O and per cent on the net in ! come of married persons and heads of families in excess of $4,000. Tax 1 payers whose net income exceeded ] the amount of the exemptions provid- ed for by the Act of 1916 were taxed under both the 1916 and 1917 acts,
 This year the taxpayer has only one | act to consider. The normal rate of 1 tax under the new act Is per cent on the first 5000 of net income above the exemptions, and 12 per cent on the remaining net income. This ap- plies to citizens and residents of the United States. Income from property in the United States owned by non- resident aliens Is subject to the full normal tax of 12 per cent For 1913 | and subsequent years the rates are | fixed at 4 and per cent respective Iy. The surtax rates have been changed, ranging from 1 per cent ot the amount of the net income be
 tween $5,o0O and s6,o0O to 65 per cent of the amount by which the net
 Income exceeds $1,000.o00. The single man with & net income for. 1918 Of $2,000 will pay this year a tax of $60, the man with n income
 of $3,0OO will pay s120, the s4,00O
 man will pay s1So and the s5,00O man will pay $24o, all at the rate of per
 cent on his net income above his per sonal exemption of S1,o0o. The sin gle man with an income for 1918 o1
 s6,00o will pay s370. He is taxed al
 the rate of per cent on is first
 $4,o00 above the exemption and at F | per cent on the remaining s1,O00, 8
 total of s360. In addition he pays a
 amount of his income between $5,0oC
 and $6,000.
 The married man will pay $30 on ]
 net income of $2,5oo in excess of his
 personal exemption, $60 on a $S.00O
 income, $12O on $4,oo0 income, S1SO
 on a S5,o00 income, and S250 on a
 $6,000 income, which includes his
 surtax of S10.
 These figures are based on the in
 come of taxpayers without dependent
 other than the husband or wife The
 
 personal exemption Of $200 for each
 person dependent upon for chief sup
 port, if such person is under eighteen
 years of age or incapable of se1f-sup- port. Under the 1917 act the $200 ex-
 emption was allowed only for each
 dependent "chfld" of the person mak
 ing the return, or, in the case of g
 head of a family, for each dependent
 child of the family. A head of g , family one who supports one ol more persons closely connected with
 him by blood relationship, relation ship by marriage, or by adoption-!s entitled to all the exemptions granted a married person.
 In his return the taxpayer is re. quired to state specifically each item of gross income. Gross income is de } fined as gains profits and income de rived from salaries, wages or compen , sation for personal service of what
 ever kind and in whatever form paid
 or from professions, vacations, trade
 business, commerce, or sales or deal
 tngs in property. whether real or per } sonal. growing out of the ownership , or use of such property, also iron interest, rent, dividends, securities, ol
 the transaction of any business car 1 riad for ai1,o or prnfit. inS 0,