Mohave County miner and our mineral wealth., 1920-03-06

SoAPASeS ASe4hhot DOSAA VI AhehNAu uals and corporation, must be in the hands of collectors of internal revenue on or before March 15, 1920. Exten- sions will be granted only in specific cases where urgent need for additional time in preparing the returns is shown.
 Where additional time is actually required, because of illness or absence, the collector of internal revenue may grant an extension of not to exceed 90 days upon written application therefor made before the return is due. Last years plan of granting extension of 45 days when tentative returns were filed has been abandoned as conditions which justified such ex- tension do not exist this year.
 It is urgently requested that re- turns be filed now to avoid any pen alties.
 Payment of Tax
 The tax may be paid in full at the time of filing the return or in four installments, the first of which must accompany the filing of the return. The subsequent installments are due on or before June 15, on or before September 15, and on or before Dec ember 15.
 If the return is not filed within the time specified the taxpayer is subject to a penalty of $1,000 and to an ad- ditional assessment of 25 per cent of the amount of the tax due.
 The return should be sent to the col lector of internal revenue for the dis trict in which the taxpayer has his residence or principal place of busi- ness.
 When a person required to make a return is unable to do so because of illness, minority, absence, or nonres-- idence, it may be done by an agent having sufficient knowledge of such persons affairs to enable him to make a complete and true return.
 Payment may be made in cash, bank check, or draft. Collectors will re- ceive uncertified checks and the tax will be considered paid as of the date the check was received, provided it is not later dishonored. If check is not paid upon presentation, liability for the tax and all penalties are re- vived.
 Before making any deduction for bad debts on an Income Tax return, the taxpayer should make sure that he is entitled to do so, and that the bad debts are of such nature that they are clearly deductible items.
 Just because the personal Income Tax form provides spaces in which to claim an allowance against income for uncollectible debts does not mean that the taxpayer may search his memory for a flock of personal loans and put them down on his return.
 The space in Block A for Bad Debts is for use only by business and pro- fessional men who are entitled to ad. just their income. And such adjust. ment can be made only in cases where certain accounts have been included in the gross income and have since during the taxable year, been found to be uncollectible.
 In other words, only those who re. port their gross income on the ac. crual basis, that is, include their en. tire sales or charges, are entitled te an adjustment to cover sales or charg. es that have been definitely determin. ed to be worthless. A return on the basis of cash receipts and disburse, ments must not show a deduction fol worthless debts; for the taxpayer has shown as income the accounts which have proven to be good.
 Arbitrarily "writing down" debts ol bills receivable is not tolerated by In come Tax. Such anticipated losses which the reserve for bad debts con stitutes, are wholly contrary to tho spirit of the law. The individua debt itself, together with the circum stances in respect to it's becoming worthless, will alone be taken int consideration when determining whether it is deductible.
 One other fact with respect to un collectible accounts is emphasized b! the Internal Revenue officials. Tha is that any bad debt charged off ant later recovered is taxable income fo the year when recovery is made.
 Bad debts may arise, not only in l business or profession but als' through bonds, notes, loans, mortgag es and other items of indebtedness wherein the assets of the taxpaye sustain an actual determined loss. Il these latter items any actual losse sustained by an individul my be claim ed as a deduction as Item 5, Block of his return.
 Holders of bonds which have becom, worthless because of dissolution ant utter bankruptcy of the issuing cor poration revealing no assets for dis tribution to the bondholders are entit