Shepherdstown register. [volume] (Shepherdstown, Va. [W. Va.]) 1849-1955, 1920-03-11
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, to.oA
Free Advice in Doubtful Cases.
Severe Penalties in
Law

Nobody l. exempt from Income Tax
An obligation is laid directly on the
shoulders Of each citizen and resident
10 consider his own case and TO get his
return in on time II one is due.
with each return showing IA tax due
payment must accompany the return
In the full amount of the tax or nj
least one quarter OF the tax.
All returns for 1919 must be flied on
or before March 10
Must Show True Floures
In hguring up his earnings for in
come tax purposes person must take
into consideration all items of taxable
Income, and each item itself must he
accurate in amount. Guesses and es-
Inmates must he 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 Form i0l0A and follow the in
structions printed on it, That form
will serve as reminder of every item
OF income; and IL IA return is due, II
tells how to prepare and file 1t.
One of the important points to keep
In mind Is that u persons net income
Is found by computation prescribed
in the law, and thar each item of in
come from every source must he con-
sidered, unless specifically exempted.
Another thing 10 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 he considered until
person has figured ont his net in
come and determined whether il was
sufficient TO require him to file a re-
turn. Then, If Il return must be filed,
he. should read carefully the nstruc-
tons for claiming exemption. and com
plete his return
Ii In doubt on any point as to income
or deductions, 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 a return on time
the penalty is a~fne of not more than
$1,000 and an addition of % per cent
to the tax, if.any. For making a false
OIL fraudulent return the penalty is n
fine of not more than $4,000 or inn
priSOnment not exceeding one year. or
both: and, in addition. 30 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
I out the gain realized If he rented
buildings. land, apartments or rooms
/ such rents must he considered taxa
| able, and he may claim deductions for
! necessary expenses incidental to rents.
Bank interest Is Il common source
/ Of income and is taxable whether with
! drawn or not. ANY amount of interest
| credited to n deposition is income to
! the dcpositOr.
J Interest on mortgages and notes is
/ 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 bencficiaries Of
an estate or trust must report their
shares OF income dStributable to them
/ whether or not actually withdrawn.
Dividends of domestic corporations
! must be reported. Many other forms
! of income are taxable, unless specific
ally exempted