The Coconino sun., 1919-01-24
INCOME TAX |S NEXT
 B|G GOVERNMENT DRIVE

The big income tax drive of 1911 is now under way, and every prepa ration is being made to handle tn largest collection in the history of in come tax.
 "I am not waiting for the fina passage of the new revenue bill by congress-" said collector Franklin "nor for new regulations and blanl forms to be issued. To get this biz tax in and get it accurate and com plete, l urge that we all begin now
 "The income tax obligations impos ed by old laws, as we'll as the meas ure now in congress, consist of two distinct operations. One is, to file ant return statement of all items of in come and items of deductions allow able by law, and to do this within thu period named in the law. The other is, to pay the tax, if any is due.
 "When the new bill is enacted into law, 1 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. It is my plan to send my men out to central locations, anc to have them travel through the dis trict, aiding taxpayers in the prepa- aration of the returns and Tn deciding doubtful points. We will go right to the people with the income tax and with the cooperation which the peo- pie 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 dis trict will have done its full patriotic duty toward the governments SUD- port.
 Meanwhile, let me say again, there is no need delaying the preparation of these figures. Anything that con gress does now will not affect the amount of a persons 1918 earnings Let us avoid the belated throwing to- gether of figures that may hit or miss, Guesses cannot be accepted as the basis of taxation. It 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 statement
 "The year 1918 was 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 ington is that a million citizens and residents will make this year their first income tax returns.
 "All signs indicate that the income tax this year will reach nearly every working man and woman, and nearly every merchant, shop keeper and farmer. Not all will havel to pay the tax, but nearly all will be obliged to make a return of the years income.
 "I am therefore advising every un" married person who earned SlOOO or over during the year 1918, and every married person, who together with wife or husband, earned S2OOO to col feet 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 marrlea person having children under Is who are working should include the earn ings of such children.
 . "If he sold any property at profit, the gain must be computed and includ- ed in gross income. If he rented any property to other persons, the total rents received in the year must be as- certained and from that figure a de- duction may be taken for taxes paid on rented property, the necessary mi nor repairs, fire insurance, any inter est he may have paid on mortgage, and a reasonable allowance for annual wear and tear of the rented property The balance is included in gross in- come for the year.
 "Interest on bank deposits, whether withdrawn or added to his bank 6al- ance, must be included in all calcu- lation of income. Bond interest re- ceived 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 CTS 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 dis tributions made by domestic corpora tions.
 "A person buying and selling mer- chandise must fine his profits for the year on the following basis: First, ascertain the gross sales or total cash receipts. Then add together the in- ventory at the beginning of the year and the purchases of goods for resale, From this latter sum subtract the in- -------------------- -------------------------