The Wolf Point herald. (Wolf Point, Mont.) 1913-1940, 1920-03-11
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 Gases.
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 a tax due
a payment must accompany the return
in the full amount of the tax or at
least o%ne-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 a person must take
into consideration all items of taxable
income, and each item itself must be
accurate in amount. Guesses and es-
Inmates be avoided, for the re-
turn is made under oath.
Everybody wha had an income dur
ing 1919 must nov 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 a Form 1040A and follow the in
structions printed on it. That form
will serve as a reminder of every item
of income and if a return is due, it
tells how to prepare and file it.
One of the important points to keep
in 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-
sidered, unless specifically exempted.
Another thing to remember is that
the personal exemption allowed tax
payers by law has NJ 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 it was
sufficient to require him to file a re-
turn. Then, if a 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 to income
or deductions, a 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
81, 900 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 t
prisonment not exceeding one year., or s
both and, in addition, so per cent of t
the tax. There are other penalties for I
to pay tax when due and for 5
understatement of the tax through :
negligence. q
Many Sources of Income. t
Aside from what one may earn by t
his services, there are many other n
sources of income. If he sold any /,
property during 1919 he must figure =
out the gain realized. If he rented l.
buildings, land, apartments or rooms o
such rents must be considered taxa +
able, and he may claim deductions for D
necessary expenses incidental to rents. Il
Bank interest is a common source Il
If income and is taxable whether with
lrawn or not. Any smount of interest
,redited to a depositor is income to
he depositor. .
Interest on mortgages and notes is =
axable; also bond interest received
rom corporations. a
A taxpayer who cashed his insur- AT
nee during 1919 must report as in P,
any excess received over the to- ia
al of premiums paid. w
Members of partnerships or personal II
ervice corporations or benefciaries of ~
estate or trust must report their :.
hares Of income ~distributable to them %,
or not actually withdrawn. h.
OF doInestlc corporations SUI
be reported. Many other forms Is
f income are taxable, unless specific be
exempted. CT
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