The Bluffton news. [volume] (Bluffton, Ohio) 1875-current, 1943-01-07
YOU AND YoD
INCOME TAX

F0ft0lrtng rs one OF u StTttS "
articles issued by the Bureau OF
Internal Revenue designed to help
clarity requirements of the 1912
| Revenue Act for those acho are
/, neo income tdr payers.-EDIToR-
WHAT is INCOME TAX?
The federal income tax is, as the
name implies a tax levied upon in
comes, and it is payable in relation
to the amount of income. Income,
| for Federal income tax purposes,
means in general any compensation
| for ones services, whether the COM
pensation be in money or in goods
or other services; it includes also
the net value received for the pro-
duct of ones labor, as farm produce
in the case of farmer; income
from investments; profit from busi-
ness operations; and other gains
from sales and exchanges of goods
and property. Certain limited cate
gories of income are, however, tax
exempt, and to the extent of such
exemption are excluded in computing
| the tax.
Because of exemptions from the
tax given to persons having less
than certain stated amounts of in
come, as we'll as because of various
deductions and credits allowable,
only small proportion of the num-
Der of persons receiving income have
until recently been subject to the
tax. Thus, of the estimated 55 mil
lion persons in this country who re-
/ ceived income in one form or another
during the calendar year 1941, only
some 26 million persons were re-
quired to file Federal income tax
returns for that year, while of these
same 26 million, more than mil
| lion were not taxable due to credits
and deductions allowable.
AS the result of the lowering of
exemptions, many more persons are
now subject to the Federal income
tax than before, and for the calen-
dar year 1912 it is estimated that
more than 35 million persons will file
Federal income tax returns. For the
large number of persons now subject
to the Federal income tax, who have
never reported income before for
Federal tax purposes, an understand
ing of the law and applicable regu-
lations is of prime Importance.
An income tax return is a declar-
alton on the part of the taxpayer of
his total taxable income for the year
, together with the various deductions
! exemptions, and credits to which he
) is entitled. 1t is in reliance upon
: voluntary disclosure, and the integ,
: rity of taxpayers generally, that the
cost of administration of the incom,
tax can be kept at minimum
Though the return is a voluntar,
statement, any person who willfull,
n makes return which he does no
believe to be true and correct il
every material matter is subject t
S the penalties provided by law.
The first requirement of the Law
9 is the filing of an appropriate re
turn. For individuals generally, thi
: must be done by March Is following
$ the end of the calendar year. TIL
return must be filed with the ap
propriate Collector of Internal Reve
nue. for the district in which is lo
Il Gated the legal residence or principa
place of business of the person max
/ ing the return.
y Under the present law ever
y single person, and every marie
person not living with husband o
wife, having a total income learn
ings, together with other income) O
$500 or more, and married person
living with husband or wife through
out the taxable year, who have a
aggregate income (total earnings O
both husband and wife, together wit
other income) of $1,000 or more, re
gardless of the amount of net in
come, must file a return.