Sequachee Valley news. (Sequachee [Sequatchie], Tenn.) 1896-1952, 1920-03-04
U. S. INCOME TAX
EXEMPTS NOBODY
Every Person Who Had income
in 1919 Must Determine
Own Ii ;".,J
MARCH is LAST FILING DATE.
surest Way Is to Follow Form 1o4oA.
Free Advice In Doubtful Cases.
Severe Penalties in
Law.

NoDOuS IL exempt lTOIl INCOME ldA.
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 return
in the full amount of the tax or at
least one-quarter of the tax.
All returns for 1919 must be filed on
or before March 10
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 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
structions printed on it. That form
will serve as reminder of every item
of income; and If a return is due, 1t
tells how to prepare and file 1t.
One of the important points to keep
in mind Is that a 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-
tons for claiming exemption, and COM
plete his return.
If in doubt on any point as to income
or deductions, a 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 falling to make a return on time
the penalty is fine of not more than
1000 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 yed1, or
both; and, in addition, so per cent Of
the tax. There are other pc 1alties 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 If he sold any
property during 1919 he must figure
out the gain realized. II he rented
buildings, land apartments or rooms
such rents must be considered taxa
BILE, 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 a depositor is income to
the depositor.
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
al service corporations or benefciaries
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 srecifical-
ly exempted