Perth Amboy evening news., 1920-01-05
Income Tax Facts
You Should Kn0W

Were you one of thousands OF per
sons who last year, with unqucstioncd
honesty ofp urpose, filed an Incorrect
income tax return? Are you, or have
you been a claimant for refund OF
taxes O~Vcrpaid2 Have YOU been call
cd upon by the Bureau OF Internal
Revenue for payment Of amounts
owed the Government through mad
I v~ertcnce or omissions IN making out
your income tax form? To sum If up,
have you experienced trouble Of any
kind in fling your income tax return
for 1887
II so, this is written for your bene-
fit and for the benefit Of more than
100000 taxpayers who, on or before
March 10, will file income tax returns
! for the year 1919. 1t is certain a per
centage Of these returns will be in
correct. II IS equally certain that the
percentage Of errors may be largely
reduced IL taxpayers will ocquaint
themselves with the income tax pro-
vision Of the act of February "a,
1919, known as the reyenue act Of
1918. which provides for the collec-
ton of taxes for the ear 1915 and
subsequent years.
Bureau Aids Taxpayers.
As an aid to taxpayers there has
been prepared with the official ap-
proyaI Of the Bureau of International
Revenue. a series Of short articles. OF
which this is the first, telling how to
make out an income tax return for
1919, when and where to file it. and
what to do in ease you meet with I'M
usual difficulties. BY making note Of
the information contained therein, il
Is believed that most Of the difficult
ties heretofore encountered may be
avoided.
Change in Normal Rate.
Probably the most important
change affecting the average taXpay-
err is in the normal rate, the eXemp-
tons of $1,000 for single persons and
81, 900 for married persons and heads
Of families remaining the same as for
1918. The normal rate for 1918 Is
4 per cent on the first $4,000 of net
J income above the exemptions and s
percent on the remaining net income,
The normal rate for 1915 was 6 and
70 per cent, respectively. This APP
plies to every citizen and resident of
the United States. Alien nonresidents
receiving income from sources within
! the United States are taxed to the full
5 per CEN on the income from such
sources.
The surtax rates, which range from
1 per cent on the amount of net in
come between S. 5000 and 5 5000 to s.
per cent on the amount of income II
excess of $1,000, 900, remain unchang.
ed.
May Fay in lnstallmcnts.
The tax. as in 1919. may be paid II
full at the time of filing the return
or in four installments, the first O
which is due on or before March Is
the second on or before June Is, tht
third on or before December Is. TIL
first installment must accompany tn
, filing of the return. The period 70
!, filing Is from January l to March Is
: Heavy penalties are provided 70
persons who fail or "wilIfully refuse
to file their return and pay the Ia
within the time prescribed.
Forms for making returns may b
obtained from offices of collectors o
internal revenue and deputy collec
tors, post Offices. and banks, If you
! income for 1919 was $1,000 or les:
ask for Form 1910 A. If 1t was NOR
that $4,000 ask for Form 1040. Re
turns must be filed with the collecto
of internal revenue for the district i
which the taxpayer lives or has hi
principal place Of business.