The Washington herald., 1921-01-27
Income Tax
Facts You
Should Know

I'-I Income Tax Facts You ShouId
Know
The Bureau of Internal RevAnue
mas at its command innumerabIe
2"uL CeS Tor checking up deIinquents
Hut+ the Information at source"
provision Of the revenue act report
mast be made by all persons. trus-
ices guardians, fiduCiaries. and hv
par ItnerShips, personal service cor
poratIonS, and organizations, of nav
ment to others during the wear
I9-O Of $1,000 or more Tho act
requires report of payments of all
hHed and detcrminabIe income -
such as salaries, wages. rents com
missions. and royalties. The re-
quIrement is not limited to period-
icaI payments. but a single nav
ment OF $1,000 or over as 4 fee to
Z lawyer or commissions to 4 broker
must be included
\ separate return of informatio1
Tor each employee whose salary for
1920 was $1,000 or more is required
OF employers. The return must
show the namc and address of each
recipient and the amount paid. Part
n"TShip, personal service cOrpora-
ton and fiduciary returns must dis
close the prOpOrtiOnate share paid
or credited to each member of the
7a-tnrrship, personal service corpo-
ration, or to each beneficiary re-
Gardless Of the amount. Inforra-
tion returns may be required also
REGARDLESS Of the amount in the
case Of payment Of interest upon
bonds, mortCa -Cs. deeds Of trust or
other obligations Of 4 corporation.
Filed at Washington.
Returns Of information must be
filed with the Commissioner Of In
tcrnal Revenue, Sorting Section,
Washington. d. c. Collectors of
internal revenue ARE not authorized
to receive such returns Forms on
which the returns must be made
may be obtained. however, from the
offices OF collectors
Approximately 100000 informa-
ton returns showing payments dur
ing 1919 Of $1,000 or mora of wages
rents. commissions, etc, were re-
ceived in. tho year 1920. In addi-
ton the bureau received $500, 900
ownership certificates revealing the
payment of bond interests and l.
100000 reports of the payment of
interest and dividends on bonds and
stocks Of foreign countries and cor
pOratiOns, which are collected
through tn domestic Offices of
these corporations and through the
regular banking system of the
United States
Returns Carefully Checked.
When directed by the Commits
s!oner of Internal Revenue or by
general regulations brokers may be
required to render a return showing
the names and addresses of Custo-
mers to whom payments were made
or for whom business was trans
acted.
Information returns are carefully
checked with the returns Of indf-.
Viduals, and where it is shown that
a payment of $1,000 or more has
been made to John Doe and John
Doe has failed to report this paw
ment in his individual return quick
action by the Bureau of Internal
Revenue follows. Thousands of de-.
inquents have been discovered, and
delinquent taxes, penalties and in
terest aggregating hundreds of
thousands of dollars have been col
lected as the result of this audit.
The period FOR filing returns of
information is from January l to
March Is, 1921. Persons required TO
make such returns and who fair TO
do so are subject-t to the same penal
ties which apply to a person failing
to make a return of individual in
come.