The Fayette falcon. (Somerville, Tenn.) 190?-current, 1920-01-02
Income Tax

measure. but 1T HAS COME TO STAY.
And the next thing 10. for the benefit
of the smaller merchants especially,
that it is not the intention of the gov
ernment to work a hardship upon any
one. nor to put anyone to unnecessary
expense by making him employ book
keeper: but from this time on, each
and every merchant, and for that mat
ter every Individual, whose income is
anything near taxable amount, must
keep some systematic account of what
he RECEIVES and his EXPENSE :, so
that he can "give reasonable account
of himself" or bis business. each year.
And it is with the hope that some prac.
tical suggestions given in this article
may be of helpful assistance to those
who heretofore have never tried to
keep track of their business.
The small merchant out in the coun.
try, and in the small town, not only
buys from the wholesale merchant, but
he buys produce, brought to his store
by the farmer. Let him keep one book
(not an expensive, nor a very large
book. just strongly bound book) large
enough to hold the years business, and
enter in that HAT HE BUYS-both
the produce and from the wholesale
merchant. Then another book tsame
kind) on which to enter his CREDIT
sales and each days CASH SALES.
Both these books should be used only
Tor the purpose for which each is in
tended, strictly. At the end of each
month add them both up. and enter the
TOTAL purchases to merchandise &C.
count" 10 your ledger (left hand side),
ard the TOTAL SALES ON THE
RIGHT HAND side of your merchan.
d se account. The first of every year
you must take stock" take an in-
ventory Of the goods you have on hand.
Oh course, you will keep an EXPENSE
ACCOUNT, put down what you pay
tor freight, taxes. clerk hire and in
surance, your business expense.
Now comes how to tell what you have
made, and if you have done what has
been suggested above and what Uncle
Ssm will expect Of you to do from now
on. the rest is easy, like this:
DEBTS
Inventory January l. 19l9.~....-.................
Bought in 1919
Expenses in 1919 .............................. -.
Iotsl
CREDITS
Cash and credit sales in 1919-..... ...........
Inventory January /, l92O........................
tOtal
The difference between the two to-
tails (the credit side being the larger),
will show what you have made during
the year. This is your NET INCOME,
unless you have rents from property,
interest on money loaned, or profit on
property sold, then this is to be added.
Now just one thing more. There has
been, very generally, misunderstand-
ing of that part Of the law as to wheth-
er or not a person has to MAKE A
RETURN If his EXEMPTION is MORE
THAN MS NET INCOME. The law Is
that u single person has net income
Of 81. 100 OR OVER. he or she must fie
report, and married person Tor
head OF family, who has net Ia
come of $1,000 or over. must make
return. And partnership has to make
return. regardless of whether they
make or lose. anu no matter what their
gain or loss Is, on or before March Is
1t Is with desire to help the tax
payer and t. save bin from fines and
penalties (called tor in this law, for
failure TO comply with the law). that
has called forth this Information from
me. &. b. MOUNT,
Deputy Revenue Collector.
Somerville. Tenn.