The circle banner. [volume] (Circle, Mont.) 1914-1939, 1920-03-05
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
Law.

Nobody is exempt from Income Tax
An obligation is laid directly on tn,
shoulders of each citizen and residen
to consider his own case and to get hi:
return In on time IL one Is due.
With each return showing q tar due
payment must accompany the return
in the full amount of the tax or al
least oDe-quarter of the tax.
All returns for 1919 must be fled 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 Form 1040A and follow the In
structions printed on it. That form
ia oCA FC dc n iCthinaCA vi SfCIy lttD
of income: and IL return is due, 1t
tells how to prepare and ale 1t.
0ne Of the important points to keep
In mind is that q 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.
AnnfHar thing tN ksr t.,f ho1
thu 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
a person has figured out his net in
come and determined whether 1t was |
sufficient to require him to file re-
turn. Then, If a return must be filed,
he should read carefully the instruc-
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 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 i'm
prisonment not exceeding one year, or
both; and, in addition, 80 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 r
sources of income. If he sold anyf +
during 1919 he must figure :
out the gain realized. If he rented q
buildings, land, apartments or rooms n
such rents must be considered taxa. I,
able. and he may claim deductions for II
necessary expenses incidental to rents.
Bank interest Is a common source
If income and is taxable whether with !,
lrawn or not. Any amount of interest y
,redited to a depositor is income to y
he depositor. 81
Interest on mortgages and notes is
axable; also bond interest received
rom corporations ~
A taxpayer who cashed his insur
nee during 1919 must report as in. a. a.
ONE any excess received over the to. -
al Of premiums paid ~
Members of partnerships or personal "
ervice corporations or beneficiaries of &c
n estate or trust must report their
nares Of income distributable to them gu
neither or not actually withdrawn. "a
Dividends of domestic corporations uu
ust be reported. Many other forms ga
income are taxable, unless specific. na u,
ly exempted. oe'
ser
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