Bisbee daily review., 1919-02-23
DETAILS OF INCOME TAX ANNOUNCED
Bachelor. Benedict. Widow and Maid, This Story Tells How Uncle Sam Plans to
 Effect Your Pocketbooks

WASHINGTON, D. C., Feb. 22.-Mr. Bachelor, was your net income for 1918. 5000 or mroe?
 MT. Benedict, was your net income for 1918, s2OOO or more?
 If SO, you are required to file an in- come tax return with the collector Of internal revenue for the district in which you live, on or before March 15.
 Congress has carefully dirrerenti- ated between the person who fails and the person who "willfully refuses to make a return and pay the tax within the time specified by the new revenue bill DeIinquents of the first class are subject to fine of not more than 5000 Those of the second class are subject to fine of not more than S10.000, or Imprisonment for one year, or both. For making a fraudulent re- turn, the penalty is a fine of not more than $10,000 or imprisonment for one year, or both. and an additional as- sessment of 50 per cent of the amount of tax eVaded
 For failing to make the return on time, in addition to the 5000 fine. there is an assessment of 25 per cent of the amount of tax due.
 Payment Earlier
 Taxes may be paid in full at the time of making the return, Or in four installments, 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 or before December Is.
 If any instsllment is not paid when due. the entire amount becomes due ten days after demand therefor by the collector. For failing to pay the tax when due there is a penalty of per cent of the amount unpaid, plus in- terest at the rate of per cent a month during which 1t remains un- paid
 Last year income taxes were due on or before June 15. The Bureau of internal revenue is seeking to em- phasize that this year, to avoid pen elty. the taxpayer must pay at least one-fOurth of his tax on or before March IS.
 With the passage of the new rev enue bill the question of how proper ly to make out an income tax return for 1919 presents itself to millions of taxpayers. The answer to this ques- tion was obtained from the bureau of internal revenue, the governments col lection agency.
 Many Changes
 The new revenue bill, as 1t affects individuals, differs materially from the war revenue act of October 3, 1917, and preceding acts. Probably the most important change is the rate, the exemptions of 5000 for single per sons and &2O00 for married persons 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 excess of 5000 and 2 per cent on the net in- come of married persons and heads of families in excess of S2000.
 The normal rate of tax under the new act is S per cent on the first 5000 of net income above the ex- emptious, and 12 per cent on the re- maining net income. This applies to citizens and residents of the United States Income from property in the United States owned by nonresident aliens is subject to the full normal tax of 12 per cent For 1919 and sub sequent years the rates are fixed at and per cent respectively. The sur tax rates have been changed, ranging from l per cent of the amount of the net income between $5000 and $600O to e5 per cent of the amount by which the net income exceeds S1,O00, 900.
 How It Affects Bachelors
 The single man with a net income for 1918 of $2000 will pay this year e tax of S6O. the man with an income of 5000 will pay S120. the $4OO0 man will pay $1S0 and the $500O man will pay S240. all at the rate of per cent on his net income above his personal exemption of 5000. The single man with an income for 1918 of $60OO will pay 3370 He is taxed at the rate of per cent on his first S40O0 above the exemption and at 12 percent on the remaining 5000, total of s36O In addition he pays surtax on $10, one per cent of the amount of his income between s5000 and S60O0.
 The taxpayer is allowed. in addition to his personal exemption of s200 for each person dependent upon for chief suppOrt, if such person is under the age of IS years or incapable of self support. Under the 1917 act the S200 exemption was allowed only for each dependent "child" of the person mak- ing the return. or. in the case of a head of a family. for each dependent child of the family. A head of a fam 1y-one who supports one or more porsons closely connected with him by