New-York tribune., 1921-03-15
Income Taxes
Being Paid in
Frenzied Rush
Eve of Final Day to Remit
Sees Worst Jam on Rec
ord at Customs Offices and
Money Order Windows
Some Still Ask Advice
Time Expires Tonight; Re-
turns Mailed Before Mid
night Not Delinquent


"Big Bill" Edwards, Collector Of In
te-nal Revenue, sat in his office in the
Customs Building yesterday and de-
lvered his ultimatum on the income
tax question. Tonight the time of
payment is up. Those who have not
already done some vigorous arithmetic
on what percentage of their salaries
they owe the government had better
hurry up. Otherwise they may expect
penalty.
ALI Offices in the city where income
tax is collected we're besieged yester
day. The crowd in the Custom House
was without precedent. Sixtyfive at
taches of the Federal Reserve Bank
are assisting the regular employees.
Although two weeks were allowed in
which to make payments, there was all
the fever OF the last-minute rush, the
frenzied questioning that goes with
the filling in Of forms and the rustic
of bills as the taxpayer handed over
his quota with a disgruntled air.
The agitation was not confined to the
Custom House Money order clerks at the
main and branch postoftices throughout
the city were besieged by hordes of
income tax payers. At the general post
Office on Park Row more than 200 per-
sons were in line continuously all day.
Clerks worked at top speed handling
money order requests in the worst rush
they have ever had in their division.
Offices Open Till Midnight
Last night the Offices at the Gus
tom House and all the branches
throughout the city were open until
midnight. They will remain open to-
night till the same hour Mail for the
Internal Revenue Bureau was the
heaviest since the institution of the
income tax.
This is duo to the fact that all OF
Manhattan has been consolidated into
one district" said Mr.. Edwards. I've
are cleaning it up fast and the checks
and cash are sent to the Federal Re
serve Bank as soon s they arrive.
There have been more requests for eX-
tensions of time this year than at any
previous time. Extensions are granted
only in two emergencies, illness or be
cause of absence from the country
When an extension is granted for
thirty days interest is applied at the
rate of one-half Of one per cent a
month"
Collector Edwards advised taxpayers
to mail their returns with check or
money order payments. He said that
any letter which bore a postmark
showing that it had been mailed up to
midnight tonight will be considered
as within the time required by law.
Conscience Money Comes In
"Conscience money" continues to ar
rive. Persons who admit they lied
about their incomes last year send in
back payments. One letter was re
ceived yesterday with two dimes in the
envelope and the following remarks:
Enclosed please find 20 cents for the
tax on some money | won a rattle
but the inclosed 20 cents will cover the
tax. l thought of this after my paper
was stamped by a notary public"
Referring to this letter, Collector
Edwards said that while money won at
cards, horse racing and other games of
chance should be reported as income,
losses incurred in any of these games
are not allowed as deductions.
He emphasized the following rulings
issued by the Bureau of Internal Reve-
nue. at Washington:
Careful check is kept by the Bureau
of Internal Revenue on returns of nd-
vidual income. Under the Information
at source provision of the revenue act
cNc4E pcASOH, III III anu corporation pay
ing to another person, partne rship, per-
sonal service corporation or fduciary
$1,000 or more during 1920 is required
to make a report to the Commissioner
of Internal Revenue.
Bonuses Must Be Reported
"1n the payment of employees en-
ployers must consider payment fol
overtime, commissions, bonuses, shares
in the profits of the business and the
fair value of board and quarters fur.
nished as part payment for services.
Firms having branch Offices shoul(
include salary payments made to EN-
ployees of such Offices. The main offic,
should make the complete return, not
ing the location of each branch.
"a separate return for each employc,
whose salary is $1,000 or more is re
quired of employers.
Tenants who make directly to land
lords payments of rental amounting t,
$1,000 or more are required to file al
information return. Where the rent i
paid to an agent no return need b.
made
The revenue act requires report 0
payments of all fixed and determinabl
income, such as salaries, wages, rents
commissions and royalties The re
qulrements are not limited to period
cal payments, but a single payment O
sl'OoO or over as a fee to a lawyer. o
commission to a broker must ne IN
cluded."