The spectator., 1920-03-02
U. 5. INCOME TAX
 ExEMPTS NOBODY
Every Person Who Had Income in 1919 Must Determine
 Own Liability.
MARCH IS LAST FILING DATE.
ovrest Way 10 e Follow Form 104oA. Free Advice Ia Doubtful Cases oevers PenatNies h
 Law.

Nobody is exempt from Income Tax. An obligation is laid directly on the shoulders of each citizen and resident ts consider his own case and te get his return in sn time If one is due.
 With each return showing tax due . payment must accompany the return h the full amount of the tax or at least one quarter of the tax.
 All returns for 1els must be filed on sf 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 accurate in amount Guesses and es- inmates must be avoided, for the re turn Is made under oath.
 Everybody whe had an income dur ing 1919 must now determine whether his CT her net income was sufficient in amount ts require an Income Tax re turn. The best way to find out is to
  structions printed on It. That form will serve as a reminder of every item of income and if a return is due. 1t tells how to prepare and hle it.
 One of the important points to keep is mind Is that . persons net income Is found by 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 tile q re turn Then. If . return must be filed, he should read carefully the instruc- tions for claiming exemption and com plete his return.
 If In doubt on any point as te 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 8 return on time the penalty Is fine of not more than xl 900 and an addition of 25 per cent 10 the tax. if any For making q false or fraudulent return the penalty Is a nne of not more than S10,0OO or i'm prisonment not exceeding one year. or both: and, In addition, 50 per cent of the tax. There are other penalties for failing to pay tax when due and for uaderstatement of the tax through negligence.
 Many Sovrees Of Income.
 Aside from what one may earn by his services, tAsrs are many other sources of income. If he sold any property during 1919 he must figure out the gain realized If he rented buildings. land. apartments or room such rents must be considered taNa- able, and he may claim deductions for necessary expenses incidental 10 rents
 Bank interest is Il common source of income and Is taxable whether with. Irawn or not. Any amount of interest credited to a depositsr Is income to the depositor.
 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 tu, tai of prem ums paid.
 Members of partnerships or persona service corporations or benehciaries Of an estate or trust must report their shares of income distributable 10 them whether or not actually withdrawn
 Dividends of domestic corporations must be reported. Many other forms uf income are taxable. unless spec iic ally exempted