The Nevada County picayune., 1920-03-18
U. $. INCOME TAX
 ExEMpTS NOBODY
Every Person Who Had Income in 1919 Must Determine
 Own Liability.
MARCH 15 LAST FILING DATE.
Surest Way Ia to Follow Form fo4OA~ Free Advice in Doubtful CaseA. Severe Penalties in
 Law

Nobody Is exempt from Income Tax
 An obligation is laid directly on the
 shoulders of each citizen and resident l to consider his own case and to get hIs
 return in on time if one is due With each return showing tux due
 payment must accompany the return l in the full amount of the tax or at 1 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 person must take into consideration all items of taxable l income, and each item itself must be
 accurate fin amount Guesses and es- | inmates must be avoided, for the re- 1 turn Is made under oath.
 Everybody who had an income dur | Ing 1919 must now determine whether | his or her net iAcome was sufficient in l amount to require an Income Tax re- turn. The best way to find out is 10 get q Form 1oiOA and follow the in struetions printed on it. That form
 will serve as a reminder of every item | of income and If a return Is due, it l 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 to ,t,nr tn .
 tho 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 10 file re- | turn. Then, if return must be filed.
 he should read carefully the instruc-
 tions for claiming exemption, and com
 plete his return
 If in doubt on any point as 10 income
 or deductions, person may secure | free advice and aid from the nearest | Internal Revenue office. Many banks l and trust companies are also furnish | ing similar service during banking | hours.
 Heavy Penalties In Law. For failing to make return on tiWs | the penalty Is fine of not more than | s1,000 and an addition of 9 per cent | to the tax. if any. For making false or fraudulent return the penalty is | fine of not more than S10,000 or i'm prisonment not exceeding one year, or | both: and in addition, 50 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 out the gain realized If he rented bHildings, land. apartments or rooms such rents must he considered taxa able. and he may claim deductions for 1 necessary expenses incidental to rents. Bank interest is a common source | of income and Is taxable whether with drawn ar not. Any amount of interest
 credited to 6 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-
 tal of premiums paid
 Members of partnerships or personal
 service corporations or beneficiaries of
 an estate or trust must report their
 shares of income distributable to them
 whether or not actually withdrawn. Dividends of domestic corporations
 must he reported. Many other forms
 of income are taxable, unless specific ally exempted.