The Rice belt journal. (Welsh, Calcasieu Parish, La.) 1900-19??, 1921-01-22
INCOME TAX FACTS
TO INTEREST PUBLIC
A Series of Answers Given to
Solve PerpIexing Problem
70 Making Returns.

Washington. was your In
come for 1920?
An answer to this question is re-
uuired by the government OF every
single person (man, woman or child)
in the United States whose net In
come for the last year was S1ooo or
more, and of every married person
whose net income was $4,000 or more.
Heavy penalties are provided by the
revenue act for those who fail or will
fully refuse" to comply.
The period for filing returns for
the calendar year 1920 is from Janu-
airy l to March Is, 1921. The bureau
of internal revenue estimates that
within this period there will be filed
1000 900 individual income tax re-
turns. It is certain percentage OF
these returns will be incorrect, not be-
cause of dishonest intent on the part
of the taxpayer, but because OF error
in making out the forms. Erroneous
Interpretation of the law and reguia'
tons governing the collection OF the
income tax, and carelessness cause
numerous mistakes, and result in the
initial assessment and collection OF
considerably greater or lesser amounts
than are actually due. Frequently
these mistakes result in overpay-
ment, return of which is made upon
claim for refund. Where, upon Veri-
fication and audit, underpayments are
shown, taxpayers, as a rule, are pre-
pared promptly to amend their re-
turns and pay the additional tax due.
In either event, there is trouble for
both the taxpayer and the govern
ment.
To the end that this year such er-
rors may be reduced to minimum,
the bureau of internal revenue is max
ing special effort to inform taxpayers
Of their rights and duties under the
revenue act as interpreted by rulings
and regulations of the treasury de-
partment.
There has been prepared, with the
official approval of the bureau,
series of short articles. of which this
is the first, telling the taxpayer how
to make out his 1920 return, when and
where to file it, and what to do in the
event he meets with unusual Difficult
ties. Errors most frequently noted In
the audit of previous returns have
been divided into classes, each of
which will be treated in an informa-
tive way. While there is no actual
change in the law, there have been
issued during the last year many rul-
ings and decisions bearing on its vari-
Gus sections, all of which are of bene-
fit to the taxpayer in the making of
a correct return.
The exemptions for 1920 are $1,000
for single persons, $4,000 for married
persons and heads of families, plus
5000 for each dependent if under 1S
years of age, OF incapable of selfsup-
port. The normal rate is per cent
on the first $4,000 of net income above
the exemptions and per cent on the
remaining net income. This applies
to every citizen and resident of the
United States. Alien nonresidents re-
ceiVing income from sources within
the United States are taxed to the full
per cent on net income from such
sources. The surtax rates range from
l per cent on income between $4,000
and $4,000 to IS per cent on income in
excess of $1,00o,0O0 met income" is
gross income less certain specified re.
auctions.
The tax this year, as last, may be
paid in full at the time of filing the
return, or in four equal installments.
due on or before March Is, June Is,
September Is and December Is. The
flrst lnstallment must accompany the
flilng OF the return, Forms 1O4OA for
incomes of $4,000 and less and 1O40
for incomes of more than $4,000 have
been revised and contain instructions
which, If carefully read and followed
Will be of great aid to the taxpayer
in the making of his return.