Askov American., 1943-01-07
More Persons To
Pay Into Federal
Income TaxFund
Lowering of Exemptions
Widens Field; 35,OOO,-
600 to be Reached.

Approximately 100000 Minnesota
taxpayers soon will receive 1912 Fed
eral income tax blanks from the Col
lector of Internal Revenue at ST. Paul
These blanks will be mailed to all
taxpayers who filed returns last year
and blanks are also to be mailed to
additional taxpayers who may be
liable this year due to decreased per-
sonal exemptions.
Every single individual whose gross
income for the year 1912 exceeds $500
and every married person whose in
come exceeds $1,000 will be liable
for the filing of an income tax re-
turn. Last year these figures were
$3.50 and $500 respectively The
returns must be filed on or before
March Is in order to avoid penalty.
Explains Changes.
A series of 10 articles, explaining
recent changes in the income tax law
and giving many other important
facts, will be published weekly in
this paper. The first article is pub
lished below:
The Federal income tax is, as the
name implies 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 product
of ones labor, as farm produce in the
case of farmer; income from in
vestments; profit from business opera
tions; and other gains from sales and
exchanges of goods and property
Certain limited categories of income
are, however, tax exempt, and to the
extent of such exemption are ex-
cluded in computing the tax
Because of exemptions from the
tax given to persons having less than
certain stated amounts of income, as
well as because of various deductions
and credits allowable, only a small
proportion of the number of persons
receiving income have until recently
been subject to the tax. Thus, of the
estimated SIS million persons in this
country who received income in one
form or another during the calendar
year 1941, only some 26 million per-
sons were required to file Federal in
come tax returns for that year, while
of these same 26 million, more than
9 million were not taxable due to
credits and deductions allowable.
s5,o0o,ooo to File.
AS result of the lowering of ex-
emptions, many more persons are
now subject to the Federal income
tax than before, and for the calendar
year 1912 it is estimated that more
than 35 million persons will file Fed
eral income tax returns. To the large
number of persons now subject tc
the Federal income tax, who have
never reported income before for Fed
eral tax purposes, an understanding
of the law and applicable regulations
is of prime importance.
An income tax return is declara.
ton on the part of the taxpayer o1
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 vol
untary disclosure, and the integrity
of taxpayers generally, that the cos
of administration of the income tas
can be kept at a minimum. Though
the return is voluntary statement
any person who willfully makes &
return which he does not believe tC
be true and correct in every materia
matter is subject to the penalties
provided by law.
File Appropriate Return.
The first requirement of the law
is the filing of an appropriate re-
turn. For individuals generally, this
must be done by March Is, follow
ing the end OF the calendar year
The return must be filed with the
appropriate Collector of Internal
Revenue for the district in which is
located the legal residence or prih-
cipal place of business of the person
making the return.
Under the present law every single
person, and every married person not
living with husband or wife, having
a total income earnings, together
with other income) of $500 or more
and married persons living with hus-
band or wife throughout the taxable
year, who have an aggregate income
(total earnings of both husband anG
wife, together with other income) OF
$1,000 or more, regardless of the
amount of net income, must file q
return.