Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1920-02-05
SIX Weeks TO
INCOME TAX DAY
No Reason, However, Why an
Earlier Return May Not Be
Made-Internal Revenue Blu
reau Imparts Information for
Benefit of Those Interested

The income tax blanks for individuals
whose incomes are under 5000 have not
yet arrived at the internal revenue Of
flee, although they are expected soon.
When they arrive they will be sent 10
all these who paid tax last year. Those
who do not receive the blanks, but who
are eligible to membership in the tau
paying fraternity this year must call or
send for blanks.
The bureau Of internal revenue has pre-
pared the following article to meet
demand for information:
Figuring income tax is an easy Job for
the professional man. BY education and
training, he is accustomed to drawing up
statements. He has records of transac-
tons involving income, and Keeps well
in touch with his expenditures.
just what he is allowed to deduct as
professional expense, in figuring his net
income, is what he wants to know eoch
year as tho tax season arrives. Therefore
a review of the items in general is CIV
en- in this article.
RETURNS FOR 1919
The present income tax law requires
that returns for 1919 be filed on or before
March Is, 1920, at the office of the COL
lector OF internal revenue for the district
in which the tax payer lives At least one
quarter of the tax due must accompany
the return.
| An unmarried person must file a re-
turn If his or her net income was $1,000
or over; and a married person living with
wife Cor husband) must file If their joint
net income was s2,0oc or over A widow
or widower, or a married person living
apart from wife Cor hushand) is class ed
as a single person.
The requirement to file a federal in.
come tax return is not contingent upon
there being a tax due.
| Form 1G:0-A is used for net income Of
not more than 5000; form 1910 for net in
come over 5000. Instructions and a work.
ing sheet accompany each return form.
| Every firm of professional men operat-
ing as n corporation must make an an
nual return of net income on form 1920;
If operating as partnership. return on
form 1865 must be filled.
GROSS INCOME.
An individuals gross income from
profession includes all compensation for
mis- services.
! Where services are paid for with some
thing. other than money. the fair market
value of the thing taken in payment is
the amount to be included as income. If
the services were rendered at a stipulated
price, in the absence of evidence to the
eohtrar! sucn price Will De presumed 10
pe me iaii 'aAue VI the compensation re-
ceived.
| III the case oi salary receNeu' inns
snouiu DE SHOWN separately IN BLOCK b.
of the return. Many professional men and
"omeh-la"yers' medical examiners
teachers, accountants. etc, are officers
or employees of a State. or a political sub
division of State, such as city. town or
county. lheir saiarles or wages as such
oilicers or employees are exempt from the
iedera! income tax. Inc exemption also
IT. ,o,,,..,;,..to,, ~. ~ -, ., ~
missions of receivers anno,nted hv state
courts
! AS TO foes for ser,ices tn cIiante m
TENTS etc these should he included IL,
the gross income for tho tax,hIe vear Il,
which received unless thew are included
when thew accrue tn him in accordance
With an onnroyad r.tbod Of .ccoun+ing
followed by him
c,c,r,,e,e
!
professional man may make his return
Oh tle OASIS OF cash intake ana actual
expenditures Tor the year. 1t should be
hoteo mere that taxpayer Is deemed to
nave received income winch mas been
credited to or set apart for him without
irestrictloh'
! A more exact and equitable method of
figuring net income Is on the 'accrual
OASIS inns means computation ON the
OASIS OF income earned ana expenses IN
lcuileu' "he'ner paio or not that actually
pertain 10 the taxable year, eXciuolhs
income earned and expenses incurred III
previous or succeeding years profes-
slohai man VINO Keeps books OF account
bic aooowntin,. ,,at,.' s,,.
employed and shows a correct net in
come
DEDI-crroNC
| ma" ma! ei"'iii DIS ue-
uuo.iohS ''e 'oSt vi supplies useo oy MN
III the pfae'iee Vi ms Proiessioh' expenses
n p s a.o.i anu iepair Vi an
, $50 ~ iiaN,'e
ais uu.' ~ pfoiessioh'ii societieS' anu
ip'io" 10 Proiess'oha' Jourhdis'
."o ron. pau LOT Office roofhs' 'he eA
~ 'no iuci' 'snt' wafer .e-epi'ohe.
80 u'eu IN such oiiices' anu the hire OF
oii'co ass'stants' Amounts EXPENDED Tor
oooNs' iu,i'i'ure ana professional 'nslru
" i "i'u eau'p'nen' OF permanent
ai1 my a''o "ap'e "s oeouc'io"s'
=" 'no oeuuv'io,is from sross income
po''y pa'S pe'e'he' hS''s
oNpenseh'
:" Wv ,dse u protess'onai man WV"
a' iesuiii pace OF business ana VINO