The Richmond Virginian. (Richmond, Va.) 1910-1920, 1920-01-17

YOU SHOULD KNOW
NO.

NO. 10
Tar returns Are examined by the
bureau Of internal revenue as soon
rs practicable after they are fled. II
he amount found due proves to be
xreater. or less than Shown in the re-
urn. the installments will be recon :
,uted. II it Is shown that the amount
,aid is in excess, such excess Will DC
credited against the subsequent IN
stallments, whereas IL the difference 10
n favor OF the government, the naf
arice Is to be paid upon notice anu
demand by the collector.
When a return IS made in good faitn
and an understaternent of the amouh@
Is not due to any fault OF the
payer no penalty accrues IL LIZ
understatenent Is due to negisence
but without intent to defraua' me-
Is added S per cent of the totAi
amount OF the deficiency. plus inter
est at the rate OF per cent month
from the time the tax was due. II inc
understatenent is false with intent 70
evade the tax, the penalty Is g. me o.
not moro than $4,000. or one year
Imprisonment, or both, fogether WIN
the cost of prosecution, with an 71ded
asse ssnent of so per cent .. Inc
amount OF the deficiehcy.
HEAVY PENALTY PROVIDED
Far failure to make a return on
time the penalty is a fire OF not more
than $1,000 and an additional assess
ment of IS per cent OF the amount
due sswiiiful refusal to make re
turn and pay the tax on time Is
punishable by fno OF not more thah
10000, or one year imprisonment
or both, together with the cost OF
prosecution If O. collector OF internal
revenue suspects thai su amount OF
income Is uuderstated in return. he
man, on his own initiativ take UP the
matter with the tax payer and, on
Incoming convinced that the amount
was understated. may increase the tax
subject to the right of the taxpayer
to appeal to the commissioner of IN
tsrnal revenue. The Commissioners,
without the intervention OF collec-
tors. may exercise original jurisdiction
N Gases of ADVERTISEMENT IT, -
The bureau Of internal revenue has
at its command innumerable avenues
of Information for checking up de-
nnouents Under the information at
the source" provision Of the act re
ports Of payments TO others, Of $1,000
or n1ors during the year 10 must -
made by all individuals. trustees.
guardians. and other fiduciarieS. ana
by partnerships and corporations.
A separate return Of each crploye
whose sAlary for 1919 was $4,000 or
more is required OF employers
The bill provides that whenever
necessary the names and addresses of
the recipient OF the income shall be
furnished by the person. corporation
or partnership paving IL The returns
must show. whenever possible,
whether the recipient is single, mar
RED. or head Of a family.
Regardless Of the amount, intorr1s.
ton returns may be required in the
case of payment of interest upon
bonds and mortgages. deeds OF trust
or other obligations of a corporation.
INFORMATION RETURNS
Returns OF information must be
Aisd with the commissioner or inter
nal revenue at Washington, Coilec-
tors of internal revenue are not au-
fhorked to receive such returns.
Forms on which tfs returns must be
made may be obtained. however,
from the Offices Of the collectors
Approximately $500 COO returns Of
information were received by the bu-
reau for the year 1918. In addition
the bureau received A SEQ, 600 owner
ship certificates revealing the pawn emit
of bond interest, dividends and for
eiSn items at income Information re-
turns this year, at iast, will be placed
in the hands OF deputy collectors OF
intsrnai revenue for Use in rounding
up delinquents.
Revenue agents will visit every
county in the United States TO assist
taxpayers in making cut their income
tax forms for 1919. The date of their
arrival and the location of their Offices
will be announced through the press.
or may b., obtained or inquiry at Of
fees OF collectors of internal reve-
nue., postoftices or banks The servi-
ces OF these experts Is offered with
out cost to the taxpayer. Failure TO
take advantage of them however.
does not relieve the taxpayer from, his
ohligatio under the law. In the
payment Of an income Tax. the tax
payer Is required to seek the govern
nent not the government the tax
payer.