The Mellette County pioneer. [volume] (Wood, Mellette County, S.D.) 19??-1971, 1920-03-12
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 1o4oA.
Free Advice in Doubtful Cases.
Severe Penalties in
MARCH IS LAST FILING DATE.

Nobody is exempt from Income Tax.
An obligation j., laid directly on the
shoulders Of each citizen and resident
to consider his case and 10 get his
return IN on time if one rs due.
With each return showing a tax due
a payment must accompany the return
In the full amount of The tax or al
least o~ne-qua"tcr cf the tax.
All returns for 1919 must be filed on
or before March -.
Must Show True FIGURES.
In figuring up his earnings for IN
come tax purposes a person must take
into consideration all items Of taxable
income, and each itom itself must be
accurate in amount. Guesscs 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 nm Income Tax re-
turn. The best way 10 find out is to
get a Form lOl0A and follow the IN
struCtions printed ON il. That form
will serve n, a reminder Of every item
Of income and II a return is due, it
tells how To prepare and file It.
one Of the important points to keep
I'm 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
sidercd, unless specifically exempted.
Another thing TO remember is that
the personal exemption allowed tax
payers by law has no relation whatever
TO the requirement 10 file return. This
exemption is not to be considered until
a person has figured out his net in
come and determined whether it was
sufficient 20 require him TO file a re-
turn. Then, if a return must be filed,
he should read carefully the instruc-
tons for claiming exemption, and com
plete bis return.
If in doubt on any point as to income
or deductions, Il 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 fine OF not more than
$1,000 and an addition Of - per cent
to the tax, if any. For making a false
or fraudulent return the penalty Is a
fine Of not more than $4,000 or i'm
prisOnment not exceeding one year, or
both and, in addition, 80 per cent Of
the tax. There are other pC,alties for
failing TO pay tax when due, and for
understatcmCnt Of the tax through
negligence.
Many Sources of Income.
Aside from what one may carr by
his services, there are many other
sources Of income. If he sold any
property during 1910 he must figure
out the gain realized. If he rented
buildings, land, apartments or rooms
such rents must be considered taxa
BILE. and he may claim deductions for
necessary expenses incidental to rents.
Bank interest is a common source
of income and is taxable whether with
drawn or not Any amount of interest
credited to a depOsitor is income to
the depOsitOr.
Interest on mortgages and notes Ia
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 person
81 service corporations or beneficiaries
Of an estate or trust must report their
shares of income distribNtable to them
whether or not actually withdrawn.
Dividends of domestic corporations
must be reported. Many other forms
IF income are taxable, unless specifical-
~ exempted.