The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1920-12-10
INCOME TAX REPORTS
NO LONGER INCUBUS
Chattanooga Business Hardly
Needs Services of
Bookkeepers

Chattanooga manufacturers are look
ing upon the approach OF the time for
making out Of 1920 income tax returns
with more equanimity than they have
felt since the introduction of the fed
eral law on this subject, according to
views being expressed by local business
men.
In the past few years their expan-
sion OF business and multiplicity of tax
and other reports has caused them to
surround themselves with competent
help, including bookkeepers of expe-
rience and ability. Experience in in
come tax returns in the past two years
mas AIDED markedly In Chattanooga In
the making OF the returns.
According to officials of the internal
revenue department, there is no one
system Of accounting insisted upon by
the federal government; II is inter-
ehted solely In securing information,
and with every request for information,
whether in the form of an income tax
return or reports of another character,
complete instructions are given for
preparing the figures desired.
There Is no set rule as to the amount
OF depreciation that may be charged Off
by business, as the authorities have
recognized that the percentage for
v
the annual depreciation on a concrete
structure Is much less than on frame
house. Suppose a building ls erected
on leased ground: at the termination
OF the lease these buildings will auto
matlcally become the property OF the
landowner; In this case the value of
the property must be charged Off pro
rata each year so that II will have been
entirely absorbed at the expiration of
the lease.
ADULTS Necessary.
The suggestion that no audit or APP
praisal OF a property should be made
unless the information arising from 1t
was helpful IN the preparation OF an
income tax report had an unfavorable
reception, as audits and appraisals are
not necessary or advisable, solely upon
the advent OF an income tax return"
according to william Rowles, Jr., an
expert accountant of the city.
According TO this auditor, an audit
verifies the bookkeeper's work and Of
fers opportunity for recommendation
looking to the betterment OF this de-
partment Of the business.
An appraisal fixes sale value on
property real or personal.
And no one, whether accountant or
following any other profession, knows
the value OF any commodity better than
the Individual owner of that property.
The value Of an article or com
HOully 10 INC actual COST OF replace
ment-nothing more, nothing less.
Amy bookkeeper OF ordinary expe-
rience and intelligence. who has COM
piled or made out an income tax return
in the past, can make out another one.
There are men in Chattanooga today
who do not profess any knowledge OF
accounting who can make out income
tax returns, even without the assist
ance OF their bookkeepers.
1t will be we'll OF course, for every
one to do all that Is necessary to in
sure the correct compilation of the In
come tax return. and where there Is
any doubt about being able to do this
work. advice should be sought even
from a paid expert.
Uncle Sam Is not in the habit Of
asking the impossible He Is strict in
enforcing his rules. but the way of
obedience is always clearly pointed out,
so there is no cause for worry: there
Is no special system Of accounting
necessary; that to eliminate audts at
the usual periods would not be wise;
and II figures are not available to
prove any claim as to the worth Of
fixed assets, these should be secured.