Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-01-10
the INCOME TAX
Facts You Should Know for
Making 1921 Report

what was 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 income
for last year was $1,000 or more, and
of every married person whose net in
come was $1,000 or more. Heavy pen
alties are provided by the revenue act
for those who fail or "wilfully re-
fuse" TO comply:
ThSperiod for filing returns for the
calendar year 1920 is from January /
Internal Revenue estimates that with
in this period there will be fled A.
100000 individual income tax returns.
1t is certain percentage Of these re-
turns will be incorrect. not because of
dishonest intent on the part of the tax
payer but because of error in making
cut the forms. Erroneous interpreted
tion of the law and regulations govern
ing the collection of the income tax
and ca"ele5SneSS cause numerous mis-
takes, and result in the initial assess
ment and collection Of considerably
greater or lesser amounts than are
actually due. Frequently these mis-
takes result in over-payment, return
of when is made upon a claim for re-
fund. Where, upon vcritication and
audit, underpayments are shown, tax
payers as rule are prepared prompt
ly to amend their returns and pay the
additional tax due. In either event,
there is trouble for both the taxpayer
and the Government.
BUREAU AIDS TAXPAYERS
To the end that this year such errors
may be reduced to a minimum, the
Bureau of Internal Revenue is maxi
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-
partmont.
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 unusual difficulties.
Errors most frequently noted in the
audit of previous returns have been
divided into classes, each Of which
will be treated in an informative way.
While there is no actual charge in the
law. there have been issued during
the last year many rulings and de-
cisions bearing on it's various Sec
lions, all of which are of benefit to
the taxpayer in the making of cor
rect return.
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 IS
years of age or incapable of self
support. 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
apphes to every citizen and resident
of the United States. Alien nom
residents receiving income from
sources within the United States are
taking the full s per cent on net in
comes from such sources. The surtax
rates range from 1 per cent on income
between $4,000 and $4,000 to s5 per
cent on income in excess Of $1,000 900.
met income" is gross income less GER
tain specified deductions.
MAY PAY IN INSTALLMENTS
The tax. this year as last, may be
paid i'll 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
first installment must accompany the
filing of the return. Forms 1040A 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.
Forms will be sent to persons who
last year filed returns of 1919 income.
Failure to receive a form. however.
does not relieve a 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 a notary
or other person authorized to adminis-
ter oaths. must be filed with the COL