Norwich bulletin., 1920-01-15

anc,e f. to be pail upon -o:ice and demand by the collector.
 When a return is made in good faith and an understatement of the amount is not due to any fault of the tax payer no penalty accrues. If the understatement is due to negligence but without intent to defraud, there is added per cent. of the total amount of the deficiency, plus interest at the rate of per cent a month from the time the tax was due. If the un- derstatement is false with intent to evade the tax the penalty is a fine of not more than $10,000, or one year, s | imprisonment, or both, together with 1 the cost of prosecution, witr the added i assessment of 50 per cent. of the l deficiency.
 1 Heavy Penalties Provided. For failing to make a return on time 1 the penalty is a fine of not more 1 than $1, 900 and an additional assess ment of 25 per cenA of the amount due. ''Wilful refusalN to make a. re- turn and pay the tax On time is pun i ishable by a fine of not more than l $1O,0O0, or one years Imprisonment, or both, together with the cost of prose- cution. If collector of internal reve- l nue suspects that an amount of in- 1 come is understated in a return, he 1 may, on his own initiative, take up i the matter with the taxpayer and, on becoming convinced that the amount was understated, may increase the 1 tax, subject to the right of the tax payer to appeal to the Commissioners 1 of Internal Revenue. The commits 1 sioner, without the intervention of col
 
 diction in case of understatement. The Bureau of Internal Revenue has at it's command innumerable avenues 1 of information for checking up de- linquents. Under the information at the source" provision of the act re- ports of payments to others of $1, 00t or more during the year 1919 must be made by all individuals, trustees guardians and other fiduciaries, and by partnerships and corporations. 1 A separte return of each employee l whose salary for 1919 was $1,000 or more is required of employers.
 The bill provides that whenever nec- essary the names and addresses of the recipient of the income shall be fur nished by the person, corporation ol partnership paying it. The returns must show whenever possible, whether
 the recipient is single, married or the head of family.
 Regardless of the amount, informa-
 ton returns may be required in the
 case of payment of interest upor l bonds and mortgages, deeds of trust or other obligations of a corporation ] uds nbf
 | Information Returns.
 Returns of information must be filed
 with the Commissioner of Interne
 Revenue at Washington. Collectors O internal revenue are not authorized tt receive such returns. Forms on wicf the returns must be made may be ob- tained, however, from the offices O. collectors.
 Approximately S,5oo,ooo returns O
 information were received by the bu
 reau for the year 1918. In addition
 the bureau received 4,s00, 900 owner
 ship certificates revealing the paynen of bond interest, dividends, and for, eign items of income. Information re
 turns, this year, at last, will be paced
 in the hands of deputy collectors 0 internal revenue for use in roundin; !, up delinquents.
 Revenue agents will visit ever,
 county in the United States to assis 1 taxpayers in making out their incom
 tax forms for 1919. The date of thei
 arrival and the location of their office
 will be announced through the press . or may be obtained on inquiry at of
 fees of collectors of internal revenue post offices, or banks The service } of these experts is offered withou cost to the taxpayer. Failure to talk advantage of them, however does no ] relieve the taxpayer from his obliga . tions under the law. In the paymen
 of an income tax, the taxpayer is re 5 quired to seek the government, no the government the taxpayer.