The Washington herald., 1920-03-07
Income Tax Facts
You Should Know

Complete returns. both Of individ-
uals and corporations, must be in
the hands of collectors OF internal
revenue on or before March Is, 1920.
Extensions will be granted only in
specific cases where urgent need
for additional time in preparing the
returns is shown
Last year, If for good and sum-
cient reasons it was found impossi-
BILE to complete a return by March
rs, corporations and individuals
were permitted to file on or before
that date a tentative return and
were given an extension of forty
five days in which to file a complete
return Conditions which justified
such extensions do not exist. this
year. ~
Where additional time is actually
required. because of illness Or ss-
sence. the collector of internnR FeS~-
enue may grant an extension OF not
to exceed 80 days upon written sp-
plication therefor made before the
return is due II before the end OF
the 3e-day extension an accurate re-
turn cannot be made, an appeal for
further extension must be made to
| the Commissioner of Internal Reve-
nue., with a full recital of the causes
for the delay. The commissioner
will not grant an additional extern
sion without a clear showing that
complete return can not be made
at the end of the 30-day period.
| Payment on 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 INSTALL
ments are due on or before June Is.
on or before September is, and on
or before December Is.
If the return is not filed within
the time specified. the. taxpayer is
subject to a penalty of $1,000 and
to an additional assessment of 25
lper cent of the amount of tax due
I The return should be sent to the
Icollector of internal revenue for the
district to which the taxpayer has
his residence or principal place OF
business.
When a personyrequired to make
a return is unable to do so because
of illness, minority. absence. or
nonresidence, IL may be done by
/ an agent ndNIuk SuulCACuI huOWl-
edge of such persons affairs to
enable him to make q complete and
true return.
bank check, or draft Collectors
will receive uncertified checks and
the tax will be considered paid as
of the date the check was received
provided it is not later dishonored.
4 nAA a..
entation. liability for the tax and
all penalties are revived.
Penalties for Evasion.
| Where a return is wilfully false
or fraudulent or contains false or
fraudulent statements made with
intent to evade the tax. the PEN
atty is a fine of not more than
$4,000 or Imprisonment for not
more than one year, or both, to-
gether with an additional assess
ment of SO per cent of the amount
of tax evaded. Where the UNDER
statement is due to negligence with
out intent to defraud, the penalty
is 5 per cent of the amount of the
deficiency. plus interest at the rate
of 1 per cent per month on such
amount from the time when It was
payable. II the return is made in
good faith andNan understatement
Is made without any fault of the
taxpayer, there is no penalty. but
the tax will be increased to the
proper amount.
Taxpayers are urged by the Bu-
reau of Internal Revenue not to
delay in the fling OF returns and
to pay taxes in as few INSTALL
ments as possible. During the
closing days of the period for nj
ing returns collectors of internal
revenue are overwhelmed with
work and cannot devote as much
time as is desired to the instruc-
tion and assistance of taxpayers.
Prompt action means better service
and the avoidance OF probable Ia
ter difficulties.