Appendix D
Form 1040 for the Year 1913
Author's Note:
The federal
government wasted no time in levying income taxes after Secretary of State
Philander C. Knox declared that the so-called 16th Amendment had been
ratified. His fraudulent declaration
was made on February 25, 1913. The
first Form 1040 was printed to cover the period of March 1 to December 31,
1913. This form was entitled "Return
of Annual Net Income of Individuals (As provided by Act of Congress, approved
October 3, 1913.)"
A most
revealing part of this Form 1040 is found in the "Instructions",
which are reproduced verbatim on the following pages. In the first paragraph of these instructions, there is valuable
evidence which substantiates the validity of The Matrix discussed throughout
this book. This paragraph is repeated
as follows, in order to highlight key phrases:
This
return shall be made by every citizen of
the United States, whether residing at home or abroad, and by every person
residing in the United States, though not a citizen thereof, having a net income of $3,000 or over for the
taxable year, and also by every nonresident alien deriving income from
property owned and business, trade, or profession carried on in the United
States by him.
[Form 1040 for
the Year 1913]
[From March 1, to
December 31]
[Instructions,
Paragraph 1]
INSTRUCTIONS
1. This
return shall be made by every citizen of the United States, whether residing at
home or abroad, and by every person residing in the United States, though not a
citizen thereof, having a net income
of $3,000 or over for the taxable year, and also
by every nonresident alien deriving
income from property owned and business, trade, or profession carried on in the United States by him.
2. When
an individual by reason of minority, sickness or other disability, or absence
from the United States, is unable to make his own return, it may be made for
him by his duly authorized
representative.
3. The
normal tax of 1 per cent shall be
assessed on the total net income less the specific exemption of $3,000 or
$4,000 as the case may be. (For the
year 1913, the specific exemption allowable is $2,500 or $3,333.33, as the case
may be.) If, however, the normal tax
has been deducted and withheld on any part of the income at the source, or if
any part of the income is received as dividends upon the stock or from the net
earnings of any corporation, etc., which is taxable upon its net income, such
income shall be deducted from the individual's total net income for the purpose of calculating the amount of income on
which the individual is liable for the normal tax of 1 per cent by virtue of
this return. (See page 1, line 7.)
4. The
additional or super tax shall be
calculated as stated on page 1.
5. This
return shall be filed with the Collector of Internal Revenue for the district
in which the individual resides if he has no other place of business, otherwise
in the district in which he has his principal
place of business; or in case the person resides a foreign country, then
with the collector for the district in which his principal business is carried
on in the United States.
6. This
return must be filed on or before the first day of March succeeding the close
of the calendar year for which return is made.
7. The
penalty for failure to file the return
within the time specified by law is $20 to $1,000. In case of refusal or neglect to render the
return within the required time (except in cases of sickness or absence), 50
percent shall be added to amount of tax assessed. In case of false or
fraudulent return, 100 percent shall be added to such tax, and any person
required by law to make, render, sign, or verify any return who makes any false
or fraudulent return or statement with intent to defeat or evade the assessment
required by this section to be made shall be guilty of a misdemeanor, and shall
be fined not exceeding $2,000 or be imprisoned not exceeding one year, or both,
at the discretion of the court, with the costs of prosecution.
8. When
the return is not filed within the required time by reason of sickness or
absence of the individual, an extension of time, not exceeding 30 days from
March 1, within which to file such return, may
be granted by the collector, provided
an application therefor is made by the individual within the period for which
such extension is required.
9. This
return properly filled out must be made under oath or affirmation. Affidavits may be made before any officer authorized by law to administer
oaths. If before a justice of the peace
or magistrate, not using a seal, a
certificate of the clerk of the court as to the authority of such officer
to administer oaths should be attached to
the return.
10. Expense
for medical attendance, store accounts, family supplies, wages of domestic servants,
cost of board, room, or house rent for family or personal use, are not expenses that can be deducted from
gross income. In case an individual
owns his own residence he can not deduct the estimated value of his rent,
neither shall he be required to include such estimated rental of his home as
income.
11. The
farmer, in computing the net income from his farm for his annual return, shall
include all moneys received for produce and animals sold, and for the wool and
hides of animals slaughtered, provided such wool and hides are sold, and he
shall deduct therefrom the sums actually paid as purchase money for the animals
sold or slaughtered during the year.
When
animals were raised by the owner and sold or slaughtered he shall not deduct
their value as expenses or loss. He may
deduct the amount of money actually paid as expense for producing any farm
products, live stock, etc. In deducting
expenses for repairs on farm property the amount deducted must not exceed the
amount actually expended for such repairs during the year for which the return
is made. (See page 3, item 6.) The cost of replacing tools or machinery is
a deductible expense to the extent that the cost of the new articles does not
exceed the value of the old.
12. In
calculating losses, only such losses as shall have been actually sustained and
the amount of which has been definitely ascertained during the year covered by
the return can be deducted.
13. Persons
receiving fees or emoluments for professional or other services, as in the case
of physicians or lawyers, should include all actual receipts for services
rendered in the year for which return is made, together with all unpaid
accounts, charges for services, or contingent income due for that year, if good
and collectible.
14. Debts
which were contracted during the year for which return is made, but found in
said year to be worthless, may be deducted from gross income for said year, but
such debts can not be regarded as worthless until after legal proceedings to
recover the same have proved fruitless, or it clearly appears that the debtor
is insolvent. If debts contracted prior
to the year for which return is made were included as income in return for year
in which said debts were contracted, and such debts shall subsequently prove to
be worthless, they may be deducted under the head of losses in the return for
the year in which such debts were charged off as worthless.
15. Amounts
due or accrued to the individual members of a partnership from the net earnings
of the partnership, whether apportioned and distributed or not, shall be
included in the annual return of the individual.
16. United
States pensions shall be included as income.
17. Estimated
advance in value of real estate is not required to be reported as income,
unless the increased value is taken up on the books of the individual as an
increase of assets.
18. Costs
of suits and other legal proceedings arising from ordinary business may be
treated as an expense of such business, and may be deducted from gross income
for the year in which such costs were paid.
19. An
unmarried individual or a married individual not living with wife or husband
shall be allowed an exemption of $3,000.
When husband and wife live together they shall be allowed jointly a
total exemption of only $4,000 on their aggregate income. They may make a joint return, both
subscribing thereto, or if they have separate incomes, they may make separate
returns; but in no case shall they
jointly claim more than $4,000 exemption on their aggregate income.
20. In
computing net income there shall be excluded the compensation of all officers
and employees of a State or any political subdivision thereof, except when such
compensation is paid by the United States Government.
c2-7357
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