Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1920-03-04
U. S. INCOME TAX
EXEMpTS NOBODY
Every Person Whs Had Income
in 1919 Must Determine
Own Liability.
MARCH IS LAST FILING Date.
Surest Way Is to Fellow FERN 1o4oA.
Free Advice in Deubtful 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 IL one is due.
With each return showing tax due
a payment must accompany the return
in the full amount of the tax or at
least one-quarter OF the tax.
An returns for 1919 must be filed on
or before March Is.
Must Show True Figures.
In fguring 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 whether
his or her net income was sufficient In
amount to require an Income Tax re-
turn. The best way to find cut is to
get a Form 1040A and follow the in
structions printed on 1t. Thai form
will serve as reminder OF every item
of income; and II a return is due, IL
tells how to prepare and file 4
One OF the important points TO 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-
Sidered, unless specifically exempted.
Another thing TO remember is that
the personal exemption allowed tax
payers by law has no relation whatever
to the requirement to ile 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 re-
turn. Then, II return must be filed,
he should read carefully the instruc-
lions 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 ba1Lng
hours.
Heavy Penalties In Law.
For failing to make return on time
the penalty is a fine of not more than
81 900 and an addition OF 25 per cent
to the tax. II any. For making a false
or fraudulent return the penalty is a
fine of not 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 fol
failing to pay tax when due and fol
understatement Of the tax through
negligence.
Many Sources of income.
Aside from what one may earn b,
his services, there are many othel
sources of income. II he sold an!
property during 1919 he must figur'
out the gain realized II he rente,
buildings, land, apartments or room
such rents must be considered taxa
able, and he may claim deductions 70
necessary expenses incidental to rents
Bank interest is common sourc
of income and is taxable whether with
drawn or not. Any amount OF integes
credited to a depositor is income 4
the depositor.
Interest on mortgages and notes 1
taxable; also bond interest receive,
from corporations.
A taxpayer who cashed his insur
ance during 1919 must report as in
come any excess received over the to
tai Of premiums paid
Members of partnerships or persona
service corporations or benefciaries o
an estate or trust must report thei
shares of income distributable TO then
whether or not actually withdrawn.
Dividends of domestic corporation,
must be reported M'ny other form,
Of income are taxable. unless specific
ally exempted.