Appendix D
Form 1040 for the Year 1913
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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]
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Appendix D
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
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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.
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Appendix D
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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