The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1920-03-03
U. 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 1o40A.
Free Advice in Doubtful Cases.
Severe Penalties in
Law.

Nobody is exempt from Income Tax.
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 tax due
payment must accompany the return
in the full amount of the tax or at
least one-quarter of the tax.
Ali 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
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 1913 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 q Form 1040A and follow the in
structions printed on it, That form
OF income; and il return Is due, 1t
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 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 6Ie return. This
exemption is not to be considered until
person has figured out his net in
come and determined whether it was
turn. Then, il return must be filed,
he should read carefully the instruc-
tions for claiming exemption, and COM
plete his return.
Ii In doubt on any point as to income
or deductions, q person may secure
free 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 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
fine Of not more than $4,000 or i'm
prisonment not exceeding one year, or
both; and, in addition, 80 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. IL he sold any
| property during 1913 he must figure
out the gain realized II he rented
buildings, land, apartments or rooms
/ such rents must be considered taxa,
able, and he may claim deductions fol
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 depositor is income ts
| the depositor.
| Interest on mortgages and notes is
taxable; alse 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
| tai Of premiums paid.
Members Of partnerships or persona
service corporations or benefciaries OF
/ an estate or trust must report theil
/ shares Of income distributable TO then
whether or not actually withdrawn.
Dividends of domestic corporation.
must be reported. Many other forms
| OF income are taxable, unless SPECIFIC
| ally exempted.