Missouri Valley times. [volume] (Missouri Valley, Iowa) 1874-1931, 1920-03-04
q. S. INCOME TAX !.
|. E|xEMPTS NOBODY
Every Person Who Had income
n 1919 Must Determine
Own Liability.
MARCH Is LAST FILING DATE.
esrsss way IL 70 Follow Form 1o4oA.
Pre- Advice In Doubtful Cases.
\ severe Penalties in
Law.
MARCH. Is LAST FILING DATE.

Nobody 10 exempt from Income Tax.
A obligation IL laid directly ON the
shoulders Of each citizen and resident
- consider his own case and to get his
return IN on time II one is due.
With each return showing tax due
payment must accompany the return
- tie full amount Of the tax or at
least ene-quarter Of the tax.
All returns for 1919 must be fled on
- before March 10.
Must Show True Figures.
In figuring up his earnings for In
cone tax purposes person must take
int consideration al items Of taxable
Income. and each item itself must be
accurate In amount. Guesses and es-
ttnatss must be avoided, for the re-
turn u made under oath.
Everybody who had an income dur
Ing 1919 must now determine whether
his o. her net income was sufficient in
amount to require an Income Tax re-
turn. The best way to find out 10 to
get Z Form 104OA and follow the in
structions printed on It, That form
will serve ~ reminder Of every item
Of income; ard II a return is due, 1t
tells how to prepare and Ale it.
One Of the important points to keep
in mind is. that a persons net income
q 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 nle 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 ale re-
turn. Then, If return must be fled,
he should read carefully the instruc-
lions for claiming exemption, and COM
plets his return.
Il In doubt on any point as to income
o. Deductions, person may secure
bee advice and aid from the nearest
lntsrnal Revenue once. Many banks
and trust companies are also furnish
hS similar service during banking
hours.
Heavy Penalties In Law.
For failing to make a return on time
the penalty 10 a fine of not more than
$1,000 and an addition Of % per cent
to the tax, II any. For making false
or fraudulent return the penalty is a
me Of not more than $4,000 or I'm
prfsonment not exceeding enc year, or
both; and, In addition, so per cent Of
the tax. There are other penalties for
failing to pay tax when due and for
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 If he sold any
property during 1919 he must figure
ont the gain realized. II 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
tuNN Va my dIuOult VI llltGlCSt
credited to 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 1910 must report as in.
come any excess received over the to-
tai Of premiums paid.
Members of partnerships or personal
service corporations or hene6ciaries OF
| an estate or trust must report their
| shares of income distributable 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.