Roanoke Rapids herald. [volume] (Roanoke Rapids, N.C.) 1914-192?, 1920-09-10
U. S. INCOME TAX
ExEMPTS NOBODY

Nobody IL 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 II one Is due.
With each return showing a tax due
payment must accompany the return
In the full amount Of the tax or at
least one-quarter Of the tar.
All returns for 1919 must be nied On
or before March Is.
Must Show True Figures.
In figuring up his earnings for in
come tar 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 And out Is to
get a Form 1040A and follow the In
structions printed on II. That form
will serve as reminder Of every item
Of income; and II return Is due, II
tells how to prepare and Ole II.
One Of the important points to keep
In mind is that 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 ID that
the personal exemption allowed tar.
payers BY law has No relation whatever
to the requirement to file return. This
exemption Is not to be considered until
q person has figured out his net In.
come and determined whether Il was
sufficient to require him to file re-
turn. Then. II return must bs nled,
he should read carefully the instruc-
tons for claiming exemption. and com
plete his return.
II In doubt on any psint as to income
or deductions, q person may secure
free advice and aid from the nearest
Internal Revenue ONCE. Many banks
and trust companies are alse furnish
ing similar service during banking
hours.
Heavy Penalties In Law.
For failing to make return on time
the penalty Is q fine Of not more than
$1,000 and an addition Of 70 per cent
to the tax. IL any. For making false
or fraudulent return the penalty is q
fine of not more than $4,000 or i'm
prisonment not exceeding one year, or
both; and. in addition, 30 per cent Of
the tax. There are other penalties for
falling to pay tax when due and for
understatement Of the tax through
negligence.
Many Sources u income.
Aside from what one may earn By
his services, there are many other
sources Of income. II he sold any
pIVPcTty uuIinB lolo NC nunt Hkohs
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 q common source
Of income and is taxable whether with
drawn or not. Any amount Of interest
credited to q depositor is income to
the depositor..
Interest on mortgages and notes II
taxable; also bond interest received
from corporations.
A taxpayer who cashed his insur-
ancs during 1919 must report ~ in
come any excess received over the TO-
tai Of premiums paid a
Members Of partnerships or personal
service corporations Or benehciarfes Of
an estate or trust must report their
shares Of income distributable to them
whether or not actunMy withdrawn.
Dividends Of densssIe corporations
must Be reported. Many other forms
Of income are taxAnlA unless specific
ally exempted