Williams news., 1920-02-27
U. s. INCOME TAX EXEMPTS NOBODY Every Person Who Had Income in 1919 Must Determine
 Own Liability.
MARCH 15 LAST FILING DATE.
surest Way Is to Follow Form 1o4oA 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 his return in on time if one is due
 With each return showing tax due payment must accompany the return in the full amount of the tax or at least one-Quarter of the tax.
 All returns for 1919 must be filed on or before March 15.
 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 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 out is to get Form 1O40A and follow the in- structions printed on it. That form will serve as a reminder of every item of income; and if 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 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 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 re- turn Then, if return must be filed, he should read carefully the instruc- tions for claiming exemption, and com plete his return 1> 8rs,,
 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 sf
 Heavy Penalties in Law
 For failing to make d return on time the penalty is fine of not more than $1 ,OOO and an addition of 25 per cent to the tax, if any. For making a false or fraudulent return the penalty is a fine of. not more than $1O,OOO or i'm prisonment not exceeding one year, or both; and, in addition, 30 per cent of the tax There are other penalties for failing to pay tax when due and for underStatement of the tax through negligence. s.rgs
 Many Sources of Income.
 Aside from what one may earn by his services, there are many other sources of income. If he sold any property during 1919 he must figure out the gain realized. If 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 common source of income and is taxable whether with credited to a depositor Is income to the depoSitor.
 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 in- come any excess received over the to-. tai of premiums paid.
 Members of partnerships or personal service corporations or beneficial ries of an estate or, trust must report their shares of income distributable to them or not actually withdrawn.
 Dividends of domestic corpora tions must be reported. Many other forms of income are taxable, unless specific ally exempted. -----7--7----- FlX ln: