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Show MUST FILERETURH ALL SUBJECT TO INCOME TAX REQUIRED TO SUBMIT STATEMENTS STATE-MENTS BY MARCH 1. HEAVY PENALTY FOR FAILURE Returns Will Be Rigidly Checked and Assistance Given Taxpayers by Officials Of-ficials in Every County Tips to Farmers. Washington. All pood Americans who are making a fair living are now-called now-called upon to pay, in the way of an income tax, their share of the cost of the war. Whether or not he is subject sub-ject to this tax is the question every man must settle at once. In a few words this is the answer : Every unmarried un-married man whose net income is $1,-000 $1,-000 or more and every married man or head- of a family whose income is $2,-000 $2,-000 or over must pay the tax. Before March 1, 1018, he must file his return with the collector of internal revenue in the district in which he lives or has his principal place of business. The man who thinks to evade this tax is making a serious error, llevenue oflicials will be in every county to check returns. Failure to make a correct cor-rect return within the time specified involves heavy penalties. "Net income" means gross Income less certain deductions provided for by the act. The law defines income as profit, gain, wages, salary, commissions, commis-sions, money or its equivalent from professions, vocations, commerce, trade, rents, sales and dealings In property, prop-erty, real and personal, and interest from investments except interest from government bonds, or state, municipal township or county bonds. Incomes from service as guardian, trustee or executor; from dividends, pensions, royalties, or patents, or oil and gas wells, coal land, etc., are taxable. Normal Rate Is 2 Per Cent. The normal rate of tax is 2 per cent on net incomes above the amount of exemptions, which is $2,000 in the case of a married person or head of a family fam-ily and $1,000 in the case of a single person. A married person or head of a family is allowed an additional exemption ex-emption of $200 for each dependant child if under eighteen years of age or L.capable of self-support because defective. The taxpayer is considered to be the head of a family if he is actually supporting one or more persons per-sons closely connected with him by blood relationship or relationship by marriage, or if his duty to support such person is based on some moral or legal obligation. Debts ascertained to be worthies and charged off within the year PDd taxes paid except income taxes and those assessed against local benefits are deductible. These and other points of the income tax section of the war revenue act will be fully explained by revenue officers who will visit every county in the United States between January 2 and March 1 to assist taxpayers tax-payers in making out their returns. Officers to Visit Every Locality. Notice of their arrival in each locality local-ity will be given In advance through the press, banks and post offices. They will be supplied with income tax forms copies of which may be obtained also from collectors of Internal revenue. The bureau of internal revenue is seeking to impress upon persons subject sub-ject to the tax the fact that failure to see this official In no way relieves them of the duty imposed by law to file their returns within the time specified. speci-fied. The government Is not required to seek the taxpayer. The taxpayer Is required to seek the government. The penalty for failure to make the return on time is a fine of not less than $20 nor more than $1,000, and In addition 50 per cent of the amount of the tax due. For making a false or fraudulent return, the penalty Is a fine not' to exceed $2,000 or not exceeding ex-ceeding one year's imprisonment, or both, in the discretion of the court, and in addition 100 per cent of the tax evaded. As to the Farmers. The number of farmers who will pay Income taxes has not been estimated by the government oflicials. hut it Is certain they will form a large percentage percen-tage of the 0,000,000 persons assessed who never before have paid an income tax. The average farmer does not keep hooks but If he avails himself of Ihe services of government experts who will be sent to aid him, It will not be diflicull for him to ascertai'i the amount of his net income. The farmer is making out his return may deduct depreciation In Ihe value of property and machinery used in the conduct of his farm, and loss by fire, storm or oilier casualty, or by theft If not covered by Insurance. Expenses actually Incurred In farm operation may be deducted, hut not family or living liv-ing expense. Produce raised on the farm and traded for groceries, wearing apparel, etc., is counted as living expenditures ex-penditures and cannot he deducted. |