The Bridgeport times and evening farmer., 1919-01-20
PLANS. FOR COLLECTION OF GREAT
 INCOME TAX FOR THIS YEAR
Preparation Already Under Way and Individuals Should Be gin to Figure Their Stand ng to Facilitate Work of Col lectors, Which Will Excell That of Last Year.

The big Income Tax drive of 1919 is now under way, and every prepara- ton is being made to handle the largest collection in the history of Income Tax. "I am not waiting for the final passage of the new revenue bill by Congress- said Collector James J. Walsh today, mar for the new regulations and blank forms to be issued. To get this big tax in and get it accurate and complete, l urge +hat we all begin now.'
 The income tax obligations impos- ed by the old laws, as well as the measure now in Congress, consist Of two distinct operations. One is, to file return or statement of all items of income and items of deductions allowable by law, and to do this with in the period named in the law. The other is, to pay the tax, if any is due. Neither of these obligations can be met without careful review Of income and expenditure for the tax year. That is the big job right now, and that is why I say the Income Tax drive Is already under way. Every where the pencil Is busy. The old year is done; all its fruits are glean- ed; and every person who fared well, or earned a good competence, must analyze his own case in cold figures. When the new bill is enacted isso law, I will have the proper return forms distributed throughout the dis trict, and everybody will be informed of the date when the sworn return ic nla my men out to central locations, and to have them travel through the dis trict, aiding taxpayers in the prepara- ton of the returns and in deciding doubtful points. We will go right to l the people with the Income Tax, and with the cooperation which the pub-' lie can give the government men, the l returns will be filed by everybody | who comes under the laws provis- ions, the right taxes will be paid, and | the district will have done its full | patriotic duty toward the govern ments support.
 Meanwhile, let me say, again | there Is no need of delaying the pre- paration of figures. Anything that | Congress- does now will not affect the
 amount of g. persons earnings for 1918. Let us avoid the belated throw
 ing together of figures that may hit 1 or miss. Guesses cannot be accepted ] as the basis of taxation. It Is clearly ] the duty of every person to compile 1 correct figures and ascertain whether 1 his income for 1918 was sufficient tc
 make necessary g. sworn return The year 1918 was banner year l for salaries and wages, and the high war prices brought unusual profits tc the average small tradesman and t ington is that million citizens and
 residents will make this year theil
 first income tax returns.
 "AlI 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 have to pay
 the tax, but nearly all will be obliged
 to make a sworn statement of the years income.
 T am therefore advising every un married person who earned s1 900 ol
 over during the year 1918, and everJ
 
 wife or husband, earned S2,000 t'
 sharpen his pencil and figure out how
 he stands.
 He must ascertain accurately hi
 gross income from all sources
 There's his salary or wages, including
 overtime pay and any bonus received
 as additional compensation. A mar ried person having children under Il
 who are working should include tn
 earnings of such children.
 If he sold any property at a profit the gain must be computed and in . cluded in gross income. If he rented
 any property to other persons, tn , total rents received in the year mus be ascertained, and from that fgur P deduction may be taken for taxe
 paid on rented property, the neces sary minor repairs, fire insurance
 any interest he may have paid ol mortgage, and g. reasonable allow ance for annual wear and tear of tn
 rented property. The balance Is in cluded in gross income for the year.
 Interest on bank deposits, whethe withdrawn or added to his bank bal , ances. must be included in all calcula tio-3 of income. Bond interest receiv ed during the year must also be in cluded, except interest on municipa f county or state bonds. Interest O.
 United States bonds need not be in
 cluded by the ordinary bond holde who purchased small amounts
 Holders of large amounts of Libert
 bonds, however, should ask thei
 bankers to write to my office for tn rule applying to tax on such interest
 Dividends on stock shares are in come, and must be included in tn gross figures. although the law doe not impose the normal tax on distri
 buttons made by domestic corpora ! tons.
 "A person buying and selling mer chandise must find his profits for tn year on the following basis: F'irst
 ascertain the gross sales or total cas receipts. Then add together the in ventory at the beginning of the yea and the purchases of goods for re
 sale. From this latter sum subtrac the inventory of goods sold. Thi | cost plus necessary expenses in