The Challis messenger. (Challis, Idaho) 1912-current, 1920-03-03
!. s. INCOME TAX
ExEMPTS NOBODY
Every Person Who Had income
. IN 1919 Must Determine
Own Liability
MARCH IS LAST FILING DATE.
surest Way ID to Follow Form 1o4oA,
Free Advice In Doubtful Gases.
eevere Penalties in
Law. -

Nobody is exempt from Income Tax.
An obligation is laid directly Oh the
shoulders bf each citizen and resident
10 consider his own case and to get his
return in on time IL one Is due.
win each return showing tax due
payment must accompany the return
III the full amount Of the tax or at
least 0ne-quartcr OF the tax.
All returns for 1919 must be filed on
or before March -.
Must Chow True Figures.
In figuring up his earnings for III.
come tax purposes Il person must take
into consideration all items of taxable
Income, and each item itself must be
accurate In amount. Gsesses and es-
Inmates must be avoided, for the re.
turn is made under OATH
Everybody who had am 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
slructions printed on IT, That form
VIII serve as ii reminder OF every item
OF Income: and If a return is due. it
tells how to prepare and file it.
one OF the important points to keep
IN mind Is that Il 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
a person has figured out his net in
come and determined whether 1t was
sufficient to require him to file a re-
turn. Then, If return must be filed,
he should read carefully the instruc-
lions for claiming exemption, and COM
plete his return.
Ii In doubt on any point as to income
or deductions, person may secure
free advice and aid from the nearest
Internal Revenue Office. Many banks
and trust companies are also furr ish-
ing similar service during banking
hours.
Heavy Penalties in Law,
For falling to make return on time
the penalty is fine of not more than
$1,000 and an addition of % per cent
to the tax, If any. For making a false
or fraudulent return the penalty is
fine of not more than $4,000 or i'm
prisOnment not exceeding one year, or
both; and. in addition, 20 per cent of
the tax. There are other pc ,alties for
railing to pa" tax when due, and for
uuderstatement 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. II he sold any
property during 1919 he must figure !
out the gain realized. If he rented
buildings, land, apartments or rooms
such rents must he considered taxa.
bic. and he may claim deductions for |
necessary expenses incidental to rents, |
Bank interest is a common source |
of income and Is taxable whether with. |
drawn or not. Any amount of interest
credited to depOstor is income tc I
the deposltor.
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.
tai of premiums paid.
Members Of partnerships or person.
nj servEe corporations or beneficiaries
Of an estate or trust must report their
shares of income distributable to them
or not actually withdrawn.
Dividends of domestic corporations
must be reported. Many other forms
IT iscome are taxable. unless specitical-