Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1920-02-26
Q. INC0 [ / !: !! Ak !! ( !.
ExEIN|p IS | NOBODY / !.
Every Person WHO Had Income
in 1919 Must Detefa,irHe
s. s. Own Liability.
MARCH us LAST FILING GA j
sar..t Way Is 70 Follow Form 1904
Fro. Aasise in. Doubtful Cases.
Severe Penalties il
Law.

Nobody Is exempt from Income Tax.
Al obligation is laid directly on the
shoulders Sf each citizen and resident
to consider his own case and to get his
return ia on time II onetis due. /,
with each return showing tax due,
a payment must accompany the returiii,,
In the full amount OF the tar OF al.
least onesquarter Of the. tax. ~ !,
All returns for 1919 must be filed on
or before March t. s :
Must Show True Figures,
In. figuring up his earnings for In
come tax purposes a person; must take:
into consideratio,i 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
ng 1919 must now determine whether
his or her net income was sufficient in
smount to require an Income Tax re-
turn. The best way to find out is 10
get a Form, 1O40S and, follow the in
stluctions printed ON it. That form
will serve ASA reminder OF every item
of income; and it Il return is due, it
tells how to prepare and file. it.
One Of the Important points TO keep
in mind is that q persons net income
is found by computation prescribed
in the Iaw, and that ench item OF IN
come from every source must be con-
sidered. unless specifically exempted.
Another thing TO remember is that
Tic personal exemption allowed tax-
PAYERS by law has no relation whatever
"a the requirement TO file return. This
exemption is not to he considered until
person has figured out his net in
come and determined whether it WAS
sufficient to require him - file re-
turn. Then, il a return must be filed,
lie Should "cad 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
fee advice and 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 return on time
the penalty is fire OF not more than
$1,000 and an addition Of % per cent
to the tax. if 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. % per cent OF
the tax. There are other penalties for
failing TO pay tax when due and for
ilnderstatement of the tax, .thTSagh
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 ne must figure
out the gain realized. II he rented
buildings. land, apartments or rooms
such rents must be cOnsincrcd taXu'
able, and lie 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 q dcpositor is income 10
the deposilor.
Interest on mortgages and notes is
taxable: also bono interest received
! from corporations.
A taxpayer who, caShed his insur-
ance during 1919 must report as in
come any excess received over the To-
tai Of premiums paid.
Members Of partnerships or persona!
service corporations or bencticiarics 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.