The Elk Mountain pilot., 1920-03-04
j. S. INCOME TAX
ExEMPTS NOBODY
Every Person Who Had Income
in 1919 Must Determine
Own Liability.
MARCH is LAST FILING DATE.
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
q 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 Is.
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 10 to
get a Form 1040A and follow the in
structions printed on 1t. That form
will serve as a reminder of every item
of income; and II a return Is due, 1t
tells how to prepare and file 1t.
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 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 II was
sufficient to require him to file re-
turn. Then, II return must be filed,
ne should read carefully the instruc-
tons for claiming exemption. and cono-
plete his return.
II In doubt on any point us TO income
or deductions, a person may secure
free advice md 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 failing to make n return on time
the penalty is a fine of not more than
$1,000 and an addition of % per cent
to the tax, II any. For making n false
or fraudulent return the penalty is n
fine of not more than $4,000 or i'm.
prisonment not exceeding one year. or
both and. in addition, so per cent OF
the tax. There are other penalties for
falling to pay tax when due and for
understateinent of the tax through
negligence.
Many Sources. Of Income.
Aside from what one may earn by
his services, there are many othe.
sources Of income. II he sold any
property during 1910 he must figure
out the gain realized. II he rented
buildings. land, apartments or rooms
such rents must be considered taxa
able. and he may claim deductions foi
necessary expenses incidental TO rents
Bank interest is a common source
of Income and is taxable whether with
drawn or not Any amount of Interest
credited to depositor is income Il
the depositor.
Interest on mortgages and notes Is
taxable; also bond interest receive.
from corporations.
A taxpayer who cashed his insu:
ance during 1919 must report MS In
come any excess received oser the 10
tai of premiums paid.
Members of partnerships or persoKp
service corporations or beneflciaries o'
an estate or trust must report the'l
shares OF income distributable 10 thsu
whether or not actually Withdrawn.
Dividends of domestic corporations
must be reported. Many o.her fora'
OF Income arc taxable, unless spec-.c
ally exempted.
49,, - wv