The daily morning oasis., 1920-07-07
U. s. INCOME TAX
EXEMPTS NOBODY
Every Person Who Had Income
in 1919 Must Determine
Owl Liability.
MARCH IS LAST FILING DATE
Surest Way Is to Follow Form 10loA.
free Advice in Doubtful Cases.
Severe Penalties in

3
An obligation is laid directly on the
shoulders Of each citizen and resident
70 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 al
i least One-quarer 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 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
rurn is made under oath.
Everybody who had IN 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 104OA and follow the in
structiOns printed on 1t. That form
will serve as 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 persons net income
is found by computation prescribed
, in the law, and that each item of in
come from every source must he 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
person has figured ont his net in
come and determined whether It was
sufficient to require him 10 file re-
turn. Then, II return mist he fled,
he should read carefully the instruc-
tons 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 banke
and trust companies are also furnish
ing similar service during banking
hours.
Heavy Penalties In Law.
For failing to make return on time
rne penalty Is fine Of not more than
$1,000 and an addition of Is per cent
to the tax, IL any For making false
or fraudulent return the penalty is a
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
failing to pay tax when due and FOL
understatement 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. IL 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
drawn or not. Any amount of interest
credited to a deposition IL income to
the depOsitOr.
Interest on mortgages and notes IL
taxable; also bond interest received
from corporations.
| taxpayer who cashed his insur-
ance during 1919 must report as In.
come any excess received over the TO-
tal Of premiums paid.
Members of partnerships or personal
service corporations or beneflciaries of
an estate or trust must report their
! shares of income dtstributable 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.