The Butler County press. [volume] (Hamilton, Ohio) 1900-1946, 1920-03-05
U. S. INCOME TAX
EXEMPTS NOBODY
Every Person Who Had income
in 1919 Must Determine
Own Liability.
MARCH is LAST FILING DATE.
Surest Way ls TO Follow Form 1o4oAs
Free Advice In Doubtful CassA
Severe PenaItlss Ia
Lave.

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 II one is due.
With each return showing tax due
a payment must accompany the returx
in the full amount Of the tax or at
least one-quarter Of the tax.
All returns for 1919 must be sled en-
or before March 10.
Must Show True Figures,
In figuring up hia earnings fog In
come tax purposes a person must take
into consideration all ltems Of taxable
income, and each item itself must be
accurate In amount. GuesSes and eS-
Inmates must be avoided, for tbs rer
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 a Form 1040A and follow the In
structions printed on t. That form
will serve as a reminder Of every item
OF income and If a return is due. W
tells how to prepare and Ole t.
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 mast be ccn-
sidered. unless specifically exempted
Another thing to remember is that
the personal exemption allowed tsx~
payers by law has no relation whatever
to the requirement 70 ale return. This
exemption Is not TO be considered until
q person has figured oUt his net In
come and determined whether 1t was
sufficient TO require him to ale re-
turn. Then, IL a return must BE hleds
he should read carefully the instruc-
tions for claiming exemption, and COM
plete his return.
If 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 aiso furnish
ing similar service during banking
hours
Heavy Penalties In Law.
For failing TO make return on time
the penalty Is q fne of not mere than
81 .0OO and an addition Of 25 per cent
to the tar. If any. For making false
or fraudulent return the penalty is q
fne of not more than $4,000 or Ina
prisonment not exceeding one year, oF
both; and, in addition. so per cent Of
the tax. There are other penalties for
falling to pay tax when due and for
understatemen OF ths tax threGgh
negligence.
Many Sources Of income.
Aside from what one may earn by
his services, there are many other
sources Of income II hs sold any
property during 1919 be mast aguFs
out the gain realized. II ne rented
buildings, land, apartments or rooms
such rents must be considered taxa.
able, and he may claim deductions for
necessary expenses incidental to renta
Bank interest is q common E0uFcs
OF income and is taxable whether with
drawn or not Any amount Of interest
credited to a depositOr Is income Il
the depositor.
Interest on mortgages ana notes ID
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-
tai Of premiums paid.
Members Of partnerships or personal
service corporations or beneficiaries oi
an estate or trust must report theil
shares Of income distributable to them
whether or not actually withdrawn.
Dividends of domestic corporation
must be reported. Many other forms
OF income are taxable, unless specific
ally exempted.