Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-01-26
THE INCOME TAX
Facts You Should Know for
Maxine 1921 Report

ful refusal TO HE Wltnlu the tiHiC Ply
scribed income tax returns for the cal
endar year 1920, and to pay the tax
on time. For failure to make a return
on time, on or before March Is, 1921,
the penalty is fine of not more than
$1,000. An additional assessment of
rs per cent of the amount due may be
applied unless a later return is fled.
and 1t is satisfactorily shown that the
delinquency was due to a reasonable
cause. "Wilful refusal" to make re-
turn and pay the tax on time is pun
ishable by a fine Of not more than
$40, 900 or one years imprisonment. or
both. together with the cost Of prose-
cution.
If the tax or any instailment thereof
remains due and unpaid for 10 days
after notice and demand by the col
lector Of internal revenue, a penalty
Of per cent is added. The instruc-
lions on the return serve as notice and
demand in the case of the first INSTALL
ment, as computed by the taxpayer.
ADDITIONAL TIME.
Where additional time for filing a
return Is required because Of illness
or absence of the taxpayer, the COL
lector Of internal revenue may grant
an extension of not to exceed 80 days
upon written application therefor
made before the return is Que. on or
before Marck Is. If before the end Of
80 days extensio an accurate return
can not be made, an appeal for further
extension must be made to the Com
missioner of Internal Revenue with
full recital of the causes for the delay.
The Commissioner will not grant an
additional extension without a clear
showing that a complete return can not
be made at the end of the 30-day
period.
When a return is made in good faith
and understatement of the amount is
not due to any fault of the taxpayer.
no penalty attaches. If the UNDER
statement is due to negligence, but
without intent to defraud, there Is
added 5 per cent of the total amount
of the deficiency, plus interest at the
rate of / per cent month from the
time the tax was due. If the under
statement is false, with intent to
evade the tax. the penalty is a fine of
not more than $4,000 or one years
Imprisonment, or both. together with
the cost of prosecution and an added
assessment of so per cent of the
amount of the deficiency.
CAREFUL CHECK MADE
The Bureau of Internal Revenue has
at it's command innumerable avenues
of information for checking up delin-
quents. One of these is the "informa .
La ;,so 80. no
nue. act, requiring reports of payments
to others of $1,000 or more during the
calendar year 1920. These reports are
carefully checked with the individual
return of the taxpayer to whom such
payments were made.
The Commissioner Of Internal Reve-
nue. and his assistants. whose duty 1t
is to see that the internal revenue
laws are properly complied with,
have authority to examine all books,
papers, and memoranda of taxpayers,
and to examine under oath persons
having information in the premises.
AS soon as practicable after March is
there is posted in the offices of coll
lectors of internal revenue, branch
offices, and post offices a list giving
the names and addresses of persons in
the collectors districts who have
filed returns.
PROMPT ACTION URGED
The Bureau of Internal Revenue
urges taxpayers not to delay in the
filing of their returns, and to pay the
tax, if possible. in full at tho date of
filing, or in as few installments as
possible. By far the greater number
of taxpayers whose income for the
year 1919 was less than 5000 paid in
full when filing their returns in 1920.
The number of such taxpayers was APP
proximately $4,000. while only $780,
900 took advantage of the installment
plan. The number of taxpayers with
incomes in excess of $4,000 paying in
full at the time of fling their returns
in 1920 was approximately $4,000
and the number making payments
under the installment plan was ap-
proximately $4,000.
Payment of the tax may be made by
cash, money order. or check. Checks
and money orders should be made out
to Collector of Internal Revenue"
The bureau advises that payment be
made by either check or money order.
as this method saves a trip to the
collectors office and insurcs avoidance
of congestion during the closing days
of the tax-filing period.