The Pascagoula chronicle., 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 1o40A'
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 MS
return In on time II one is due.
With each return showing tax due
payment must accompany the return
In the full amount of the tax OF NJ
least one-Quarter OF the tax.
All returns for 1919 must be filed on
or before March 10.
Must Show True Figures
In figuring up his earnings for IN
come tax 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 Wheti'er
his or her net income was sufficient IN
amount to require an Income Tax re-
turn. The best way to find out is 70
get Form 1040A and follow the in
structiOns printed on it. That form
will serve as a reminder of every item
of income and IL a return is dre, It
tells how to prepare and file II.
One Of the important points 10 keep
In mind Is that persons net ii.colGe
Is found by a computation prescribed
in the law, and that each Item OF IN
come from every source must he con-
sidered, unless specifically exe!apted.
Another thin; to remember is that
the personal exemption allowed lax
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 file re-
turn. Then, If a return must be filed,
he should read carefully the instruc-
ions for claiming exemption, and com.
plete his return.
If in doubt on any point as to 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 falling to n - Il return Oh time
the penalty is aofne Of not more than
$1,000 and an addition Of q per cent
to the tax, IL any. For making false
or fraudulent return the penalty Is a
fine Of moi more than $4,000 or i'm.
prisonment not exceeding one year, OF
both; and. in addition. so per cent of
the tax There are other penalties for
falling 10 pay tax when due and for
underSta tenent of the tax 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 renli2ed n he rented
buildings, land, apartments or rooms
such rents must he considered taxa.
able, and he may claim deductions for
necessary expenses Incidental to rents
Bank interest Is a common source
Of income ana Is taxable whether with.
drawn or not, Any amount of interest
credited to a depositor is income to
the deposition.
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 Ia,
come any excess received over the to- |
tai of premiums paid
Members of partnerships OF personal
service corporations or beneficlaries OF |
an estate or trust must report theit
shares Of income distributabl4 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.