Free trader-journal. (Ottawa, Ill.) 1916-1920, 1920-01-10
us. DEPUTIES CLEAR
DECKS FOR BIG RUSH
OF INCOME TAXWORK
OTTAWA POSTOFF,CE AND BANKS
PREPARE FOR HEAVY VOLUME
or BUSINESS WHICH IS SOON
TO BEGIN.

Bank and postolice employees are
getting their houses IN order for
the grand rush. which begins prupab-
~ next week. of income tax business.
Preparations are being made for
handling the large volume OF work in
clock like fashion and once the rush
starts filters will be taken care of
az speedily as they appear to make
out their schedules. Deputy t. s.
Collector Walter Nerwin, who has
his headquarters in Ottawa will have
general charge Of the work, and viii
be assisted by special experts who
probably will be sent here to give
him n lift in cleaning up the great
coolies Of information they will have
to impart.
While forms 1910 and lei0-A, gen
eral income tax blanks. have not been
received in Ottawa, they are expect
ed al any moment, and it is probable
they will be on hand for the coming
week.
Many Fined in 1918.
Twenty thousand persons last ye.r
paid a fine of s. each for failure to
Tile an income.taX return for 1918, al
tho their income for that year was not
taxable.
The revenue act provides an eX-
emption of $1,000 for single persons.
S2,oe0 for married persons and head
of families. and an additional eXemp-
ton of 5000 :or each person depend.
"nt upon the taxpayer if such person
ig under 1S of nr IL.
of self.support The delinquents last
year were persons whose incomes ex-
actly equaled the amount Of the eX
emptions and who considered it un.
necessary. therefore, to file return
and others whose income was non
taxable because of dependents. and
who were under a similar mistaken
impression
For example. single man with Il
net income Of 5 900 was supporting
sistor for whom he was allowed an
exemption Of $500, placing his income
in the non-taXable list For this rea-
son he did not file return When
his delinquency was discovered thru
return filed by his employer. who
is required to report payments Of
$1,000 or more. in each employe, no
was fined s..
Must File Return,
TO avoid penalty. every person
whose income for the last year equal
ed or exceeded $1,000, or 1000, ac.
cOrding to their marital status or
their status as the head Of a family.
must file a return The law makes
no exceptions. the penalty for failure
being fine OF not more than 81 900
Head of Family
Whether or not a person is the
head of a family" and entitled to a
$1,000 exemption is a question to be
determined largely by circumstances
surrounding each individual case
The fixing Of his status decides, ir
many instances, whether his income is
taxable or non-taXablc.
a head of a family is defined by
treasury regulations as "a person who
actually supports and maintains one
or more individuals who are closely
connected with him by blood rela-
tionship, relationship by marriage. or
by adoption. and whose right to eXer-
else family control is based upon
some moral or legal obligation" A
single person is the head of family
if he is the sole support o. relatives
living in the same house with him
and If he exercises control of house
hold affairs The words sole sup
port" are used in the sense that there
is no other person to whom the de
pcndents may look for support. In.
come from other sources, such as in
terest on bonds, stock dividends.
pensions. etc, If meagre enough still
to leave the recipient dependent does
not preclude claim for exemption.
such income. however. must be in
cluded in the return of the head Of
the family
Can Not Divide Exemption.
The s. 900 additional exemption al.
lowed the head of family can not be
divided between two single members
of a household division of respon.
sibility excludes the parties from
such claim A single person who does
not qualify as the head of a family
may still claim an exemption of $3.50
for each person dependent upon him
Tor support, If such person is under
~ years of age or incapable of self
support. son who has left home
hut sends his mother more than hal.
me sum required Tor her support is
entitled to the 5000 exemption. pro
vlded the mother can not support her
self. Otherwise the amount must be
considered as gift, and therefore is
not deductible. A son living at home
and supporting his mother may claim
the $4,000 exemption allowed the heaG
of family, but not an additional ex-
emption Of 5000 unless the mother is
incapable of sel.-support.