The L'Anse sentinel., 1920-03-05
y. S. INCOME TAX
ExEMPTS NOBODY
{. Every Person Who. Had Income
in 1919 Must Determine
Own Liability.
MARCH IS LAST FILING DATE.
Surest Way Is to Follow Form t04oA.
Free Advice in Doubtful Cases.
Severe Penalties In
Law.
MARCH IS LAST FILING DATE

1NODOuy 10 tAeiupt iIOiu iHCoIiic iuA
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 IL one is due.
With each return showing a 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 1910 must be filed on
or before March 10.
Must Show True Figures.
In figuring up his earnings for in
come tax purposes 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 1040A and follow the In
structions printed on 1t. That form
will serve as a reminder Of every item
OF income; and IL return Is due, 1t
tells how to prepare and file It.
One of the important points to keep
in mind h that n 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
n person has figured out his net In
come and determined whether 1t was
sufficient to require him to file a re-
turn. Then, II n return must be filed,
ne should read carefully the instruc-
lions 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 neares,
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 return on timt
the penalty Is fine of not more thar
! $1,000 and an addition q % per CEN
to the tax, II any. For making false
or fraudulent return the penalty Is 8
! fine of not more than $4,000 or i'm
| prisonment not exceedirsy one year, OF
both; and. in addition, so per cent Of
the tax. There are other penalties fol
failing TO pay tax when due and fol
understatement of the tax through
negligence.
| Many Sources Of Income.
Aside from what one may earn b,
sources of income. If he sold an!
property during 1910 he must figure
out the gain realized. If he rentet
buildings. land, apartments or rooms
such rents must be considered taxa
able, and he may claim deductions TO
necessary expenses incidental to rents
Bank interest Is q common source
OF income and is taxable whether with
drawn or not. Any amount Of interes
credited to depositor Is income Y
the deposition.
i Interest on mortgages and notes I
taxable; aIso bond interest receive'
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 persona
service corporations or beneficiaries o
an estate or trust must report thei
shares of income distrlbutable to then
whether or NOT actually Withdrawn.
Dividends Of domestic corporation
must be reported. Many other form
Of income are taxabIe. unless SPECIFIC
ally exempted.