The Yale expositor., 1920-03-04
U. S. income TAX
EXEMpTS NOBODY
Every Person Who Had income
in 1919 Must Determine
Own Liability.
MARCH is LAST FILING DATE.
Surest Way Is to Follow Form 104oA.
Free Advice in Doubtful Cases.
Severe Penalties in
Law.

Nobody is exempt from Income Tax.
An obligation is laid directly on the
shoulders Of each citizen and resident
to consider his own case and to get his
return i'm on time If one Is due.
With each return showing tax due
payment must accompany the return
in the full amount of the tax or ut
least one-quarter of the tax.
All returns for 1919 must be filed on
or before March Is.
Must Show True Figures.
In figuring up his earnings for in
come tax purposes person must take
| into consideration all items Of taxable
income, and each item itself must be
accurate in amount. Guesses and es-
Inmates must be avoided, for the re-
turn is made under oath.
Everybody who had an income dur
| ing 1919 must now determine whether
his or her net income was sufficient in
| amount TO require an Income Tax re-
| turn. The best way TO find out is to
get a Form 1040A and follow the in
strnetlOns printed on 1t. That form
will serve as reminder of every item
| OF income; and If return is due, 1t
tells how TO prepare and file it.
| One OF the important points to keep
in mind is that a persons net income
is found by a computation prescribed
| in the law, and that each item of In
come from every source must be con-
sidered. unless specifically exempted.
Another thing TO remember Is that
the personal exemption allowed tax
payers by law has no relation whatever
to the requirement to file return. This
| exemption is not to be considered until
person has figured out his net In
come and determined whether 1t was
sufficient to require him to file, a re-
turn Then, If return must be filed,
ne should read carefully the instruc-
tons for claiming exemption, and COM
| plete his return.
| If In doubt on any point as TO income
or deductions, a person may secure
free advice and aid from the nearest
| Internal Revenue Office. Many banks
and trust companies are also furnish.
ing similar service during banking
hours.
Heavy Penalties In Law.
For failing to make return on time
| the penalty is fine OF not more than
| 81 900 and an addition of % per cent
to the tax, IL any. For making a false
| or fraudulent return the penalty is a
fine of not more than $4,000 or inn
| prisonment not exceeding one year, or
both; and, in addition, so per cent of
| the tax. There are other penalties for
failing to pay tax when due and for
understatement of the tax through
negligence.
Many Sources Of income.
| Aside from what one may earn by
| his services, there are many other
sources OF income. If he sold any
property during 1919 he must figure
out the gain realized II he rented
buildings, land, apartments or rooms
such rents must be considered taxa
| able, and he may claim deductions for
necessary expenses Incidental to rents
Bank interest is common source
| of income and is taxable whether with.
| drawn or not. Any amount Of interest
| credited to a deposltor Is income to
the deposition.
Interest on mortgages and notes is
1 taxable; also bond interest received
from corporations.
A taxpayer who cashed his insur'
ance during 1919 must report as in
| come any excess received over the to.
tai of premiums paid.
Members of partnerships or personal
service corporations or beneficiaries OF
an estate or trust must report their
shares Of income distributable to them
whether or not actually withdrawn.
Dividends of domestic corporations
mist be reported. Many other forms
of income are taxable, unless specific
j ally axamntad