South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-11-07
TAX AUTHORITY
DELIVERS TALK
Former United States Reven-
lie Man Addresses Fifty
Bankers at Oliver.

An explanation in detail. % the
federal income tax sor The coming
year aas tho subject % The ,sddresE
OF A. T. L.rdop, income ra1 expert
formerlT - the Cnised states rev
enue department. % more than 80
local and OF OF town bankers and
Industrial piart representative 10
the Turk5I room a: The oliver no
, tel. Thursday a1orEinE.
1lr LiEdop spoke OF the workings
o. the taX and especially empl lied
the dvty Of The bankers 10 educate
the farmers f. rec lie the necessity
OF giving the return on the income
serioue consideration. Failure % DO
so makes them liable to a 90 percent
increase and a specific fine Of from
$50 10 $50 for evasion. He SAID most
Of the mistakes and misunderstood
ings were due TO ignorance of the
workings OF the tax and gave
number of Instances showing the
point. He stated that banking houses
would gain prestige by educating the
farmers and thereby showing them
their gain in the end.
Describes Rate.
He went on with a description Of
the rate OF tax for the calendar year
Of 1918 saying that the normal in
come tax of every individual citizen
or resident of the United States is
at the rate OF six percent upon the
first 81 600 of the net income in ex-
cess of credits allowed and p per
cent upon the excess over that
4 in.
come in excess of $4,000 is liable 10
a surtaX of one percent upon income
from $1,000 to $4,000; two percent
upon income from $4,000 10 $4,000;
three percent upon income from
5000 TO $4,000 and so on in a like
proportion. III man is entitled to an
amount of credit, which is not tax
able. the amount is deducted from
the taxable income and not taxed.
Mr.. Lindop explained the credits
as follows, the amounts exempt
from taxation are those received as
dividends from a corporation which
is taxable within the United States
upon its net income, also the amount
received as interest upon obligations
Of the United States upon its net in
come and a number of personal eX-
emptions He followed relating
specific instances of all the phases
of gross income, deductions from
gross incomes, ordinary and neces-
sary expenses, depreciation, interest,
losses depletion. and gifts He ad-
vised trict attention to be paid to
good bookkeeping in order that
comprehensive report be made that
would ordinarily be excepted by the
government without question After
4 his talk Mr.. Lindop brought the
meeting to a question and answer
basis and a round table discussion
followed.
Andrew Smith Talks.
Andrew Smith, secretary of the In
diana State Bankers association.
gave a short address in which he ad-
vised the bankers to warn their
sients against the blue sky operat-
ors which are beginning 10 become
: menace in the state. He also ask
/ ed the small town bankers to be
/ careful 10 get adequate protection
against Liberty bond robbers. who
! seem to be at work in different sec
/ tons of the state The bonds are
/ especially desirable 10y them because
/ they are so easily negotiable He
/ suggested several methods of protec-
/ ton which could be employed. He
announced the distribution of the in
/ come tax primer for farmers which
/ has been prepared by the bureau Of
l internal revenue for the information