Newark leader. ([Newark, Ohio]) 1917-1946, 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 lo4oA.
Free Advice in Doubtful Cases,
Severe Penalties in
Law

Nobody is exempt from Income Tax.
An obligation is laid directly on the
shoulders Of each citizen and resident
TO consider his own case and to get his
return in on time if one is due.
With each return showing tax due
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 dled Oh
or before March Is.
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 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 10 require an Income Tax re-
turn. The best way to find out is to
get Form l040A and follow the in
structions printed on it, That form
will serve as a reminder Of every item
of income aud If Il return is due il
tells how 10 prepare and file il.
One of The important points 10 keep
in mind Is that a persons net income
Is found by computation prescribed
In the law, and that each item Of in
come from every source must be con
sldered, unless specifically exempted.
Another thing 10 remember is that
The personal exemption allowed tax
payers by law has no relation whatever
10 the requirement 10 file return. This
exemption is not 10 be considered until
person has figured out his net in
come and determined whether II was
sufficient 10 require him 10 file d re-
turn. Then, if return must be fled
he should read carefully the instruc-
tons for claiming exemption, and com
plete his return
II IN doubt on any point as 10 income
or deductions, a person may secure
ffee 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 Oh time
The penalty is fine OF not more than
$1,000 and an addition OF % per cent
td the tax, if any. For making false
or fraudulent return the penalty Is
hnH nf SIN mn frn
prisonment not exceeding one year, or
both and, ia addition, 30 per cent Of
the tax There are other penalties for
falling TO pay tax when due and FOR
understatement or the tar through
negligence
Many Sources Of Income.
Aside from what one may earn by
his services, there are many other
sources of income II he sold any
property during 1919 he must figure
out the gain realized II he rented
buildings, land, apartments or rooms
such rents must be considered taxa
able, and he may claim deductions for
necessary expenses Incidental to rents.
Bank interest is common source
OF Income and is taxable whether with
drawn or not. ANY amount OF interest
credited TO depositor Is income to
The deposition
Interest on mortgages and notes is
taxable; also bond interest received
from corporations
taxpayer who cashed his insur
ance during 1919 must report as ia
come any excess received over the 10,
tai Of premiums paid.
Members OF partnerships or personal
service corporations or beneficiaries OF
an estate or trust must report their
shares Of income dlstributable 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