The Medina sentinel. [volume] (Medina, Ohio) 1888-1961, 1919-02-28

to the extent provided for in the lib
erty bond acts. Interest on liberty
bonds to the par value of $4,000 is
exempt from all taxation. Holders
of large amounts of liberty bonds
are advised to consult their bankers or
collectors of internal revenue as to
interest exemptions.
Amounts received through accident
or health insurance, or under work.
mems compensation acts, plus the
amount of damages received, whether
by suit or agreement, on account OF
such injuries or sickness.
Amounts received during the war by
person in the military or naval
forces for active service, not to ex-
ceed $4,000.
Husband or wife whose combined
net income for 1918 equaled or ex
ceeded $4,000 must file a return, eth
er separate or jointly as desired. If
separate returns are filed either one
may claim the personal exemption Of
$4,000, or they may divide it. A
widow, a woman living apart from
her husband, or a maid must file a
return if her net income was $1,000
or more.
The bureau of internal revenue is
seeking to impress on the public the
necessity for compliance with that sec
ton of the law requiring return OF
income whether or not the income is
taxable. The single man with an
exact income of 81 900, or the married
man with an exact income of $4,000
who decides that, because his income
is not taxable, he need not bother
about filing a return, is making mis-
take.
However, a single man or married
man whose salaries are lower thar
81 900, or $4,000 respectively, neet
make no return.
, A checking system will inform thu
bureau of internal revenue of delin
quents. Under the information a
, source" provision of the act, every in
: dividual, corporation or partnership
which paid in 1918 to another indi
vidual corporation or partnership
81, 900 or more, must make returl
of such payment to the commissions
of internal revenue.
! These returns are required of EN-
> ployers, lessees and mortgagers 0
= real estate, and fiduciaries, and mus
y include rents, salaries, premiums an
annuties. Employers are require
: to make a separate return of eac
K payment of $1,000 or more to EN-
y ployees and wherever possible, mus
state whether the recipient is single
: married, or the head of a family.
Congress has carefully differentiat
ed between the person who "fails" an
n the person who "willfully refuses" t
t make a return and pay the tax with
}, in the time specified by the new reve
o nue. bill. Delinquents of the frs
f class are subject to fine of not nor
y than $1,000. Those of the secon
+ class are subject to a fine of nc
n more than $4,000, or imprisonmer
for one year, or both.
= For making fraudulent return tn
penalty is a fine of not more tina
It $4,000 or Imprisonment for one yea
t, or both, and an additional assessmel
: of so per cent of the amount of ia
evaded.
$. For failing to make the return G
J. time, in addition to the $1,000 fin
there is an assessment of rs pt
+ cent of the amount of tax due.
e Taxes may be paid in full at Il
e time of making the return or in for
e installments, the first Of which is dr
J. on or before March Is, the second c
or before June Is, the third on or b.
fore September Is, and the fourth G
~ or before December Is.
v, If any installment is not paid whe
l. due, the entire amount becomes dl
a. ten days after demand therefor by Il
n collector. For failing to pay the ia
m when due there is a penalty Of 5 pt
cent of the amount unpaid, plus il
- terest at the rate of / per cent
y y month during which it remains unpai