The herald and news. [volume] (Newberry S.C.) 1903-1937, 1920-03-09
Every Person Who Had Income
in 1919 Must Determine
Own Liability.
MARCH IS LAST filing DATE.
Surest Way is to Follow Form 1040A.
Free Advice in Doubtful Cases.
Severe Penalties in
Law.

NODOQV is exempt from lncOfne Il dAs
An obligation is laid directly on the
shoulders of each citizen aid resident
to consider his own case and to get his
return in on time if one is due
With each return showing tax due
a payment must accompany the return
in the full amount of the tax or at
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 taxah.e
income, and each item itself must he
accurate in amount. Guesses and es'
Inmates must be avoided, for the re-
turn Is made under oath.
Everybody who bad 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 f1nd out is to
get Form 1040A and follow the IN
structfons printed on it. That form
will serve as reminder OF every item
of income; and if return is due, Il
tells how to prepare and file it.
One Of the important points TO keep
in mind is that persons net income
is found by a computation prescribed
in the law, and that each item OF IN
come from every source must he 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. rms
exemption is not to be considered until
= person Las figured Cd. h!S net IN
c3,.p and determined whether it was
sufficient 10 require him 10 IL" Il re-
ty,r,: Then. # Il return ;ul.SI be flied
he should read carefully the inStruc'
tons for c,;, ming exemption. and COM
rleia his return.
If in doubt on any point "s 10 income
or deductions, persGn N!;ly secure
free advice and aid from TIE 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 Il return on time
the penalty is fine of not more than
$1,000 and an addition of % per cent
to ;he tax if any. For making false
or fraudulent return the penalty is
fine of not more than $l0,00o or inn
prisonment not exceeding one year, OF
both; and. in addition. so per cert OF
the tax. There are other penalties fol
failing TO pay tax when due and fol
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 an!
property during 1919 he must figure
out the gain realized. If he rented
buildings, land, apartments or rooms
such rents must be considered taNa
able, and he may claim deductions fol
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 depositor is income tc
the dnnoSitOr.
Interest on mortgages and notes is
taxable: afS1 bond interest received
from corporations.
A taxpayer who caSAcd his inSur'
ance during 1919 must report as in
come any excess received over the tc'
tai Of premiums paid.
Members OF partnerships or personal
service corporations or hene'iciarieS OF
an estate or trust must report thrit
shares of income GiStributahie to them
whether or not actuall, withdrawn.
Dividends Of domestic corporations
must be reported. Many other forms
of income are taxable, unless specific
ally exempted.