The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1921-01-21
WHAT IS YOUR INCOME KEPT IN HOSPITAL POST
That's the Question That Every
One Will Be Called On to
Answer
What is your income for 1920?


An answer to this question is re-
Quired by the government of every
single person oman, woman, or child)
in the United States whose net in
come for last year was $1,000 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 "willfully refuse" to comply.
The period for filling returns for
the calendar year 1920 is from jan
uary to March Is, 1921. The bureau
Of internal revenue estimates that
within this period there will be filed
100000 individual income tax re-
turns. 1t is certain a percentage of
these returns will be incorrect, not
because or dishonest intent on the
part of the taxpayer but because OF
error in making out of forms. Erro-
neous Interpretation of the law and
regulations governing the collection
of the income tax and carelessness
cause nunie rous mistakes and result
in the initial assessment and col
lection OF considerably greater or
lesser amounts than are actually due.
Frequently these mistakes result in
overpayment, return of which i3
Where, upon notification and audit,
underpayments are shown, taxpayers
as a rule are prepared promptly to
amend their returns and pay the ad
ditional tax due. In either event,
there is trouble for both the taxpay-
er and the government.
Bureau Aids Taxpayers
To the end that this year such err
'rors may be reduced to a minimum,
the Bureau of Internal Revenue is
maxim special effort to inform tax
payers OF their rights and duties un-
der the revenue act as interpreted
by rulings and regulations of the
Treasury Department.
There has been prepared with the
official approval of the bureau a
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 un-
usual difficulties. Errors most fire.
quently noted in the audit of pre-
vious returns have been divided into
classes, each of which will be treat
ed in an informative way. While
there is no actual change in tho law,
there have been issued during the
last year many rulings and decisions
bearing On its various sections, all
of which are Of benefit to the tax
payer in the making of correct re-
turn.
The 1920 Exemptions.
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 IL
years OF age or incapable Of self
support. The normal rate is 4 per
above the exemptions and per cent
on the remaining net income. This
applies to every citizen and resident
of the United States. Alien nonresi-
dents receiving 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 per cent ron income
between $4,000 and $4,000 to So per
cent on income in excess of $1,000
900. "Net income is gross income
less certain specified deductions.
May Pay ln-lstallments
The tax, this, year as last may be
paid in full at the time of filling the
return, or in four equal installments
due on or before March Is, June Is,
September Is, and December Is. The
first installment must accompany the
filing of the return. Forms 1040A for
incomes of $4,000 and less than 1040
for incomes of more than $4,000 have
been revised and contain instructions
which il carefully read and followed
will be of great aid to the taxpayer
in the making of his return.
Forms will be sent to persons who
last year filed returns Of 1919 income
Failure to receive form, however,
does not relieve person of his obli
cation to file return and pay the
tax on time. Copies may be obtained
from offices OF collectors Of internal
revenue, branch offices, and banks.
The return, sworn to before notary,
or other person authorized to ad-
minister oaths, must be filed with
the collector for the district in which
the taxpayer lives or has his princi-
pal place of business.