The daily banner. (Cambridge, Md.) 1897-2008, 1921-02-10
1927 Income Tax Facts You Should
Know

Heavy penalties are provided by
the revenue act of 1918 for failure
or willful refusal to file within the
time prescribed income tax returns
for the calendar 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 81 900. An addi-
uonal assessment of 25 per cent OF
The amount due may be applied un-
less a later return is filed, and it Is
satisfactorily shown that the delin-
qucncy was due TO a reasonable
cause. ''Willful refusal to make
return and pay the tax on time Is
punishable by fine of not more than
$4,000 Or ore years Imprisonment,
or both. together with the cost OF
prosecution.
If the tax or any installment there
OF remains due and unpaid for 10
days after notice and demand by the
collector of internal revenue. a pen
atty of 5 per cent is added. The in
structions on the return serve as
notice and demand in the case of the
first installment, as computed by the
taxpayer.
Additional Time
Whore additional time for filing
return is requireGcSpecause OF Illness
OF absence of the taxpayer, the col
leCtor of internal revenue may grant
an extension of not to exceed 80 days
upon written application therefor
mace before t}fa return . due, on OF
before March 159@ If before the ann
of 80 DAYS extension an accurate re-
turn can not be made, an appeal Tor
further extension must be maze to
the Commissioner of Internal Reve-
nue. with q full recital of the causes
for the delay The Commissioner
will not grant an additional extern
sion Will out q clear showing that
complete return can not be made al
the end of the. 30-day period.
When 4 return is made in gooo
faith and understatement OF the
amount is not due to any fault of the
taxpayer, no penalty attaches. IL
tho -undGrslatement is due to negliS-
ence but without intent TO defrauo.
thorc is added per cent OF the totai
amount on The deficiency, plus inter-
esi ~ Tie rate of l per cent month
J from the time the tax was due. II
Iic under,latement is false, with IN
ta.+ 10 lvade the tax the penalty Is
=. a;n,. OF not more than $4,000 or
CY. wears Imprisonment, or both.
to1e, her with the cost of prosecution
and an added assessment OF oo per
cont of the amount of the deficiency.
Careful Check Made
The Bureau of Internal Revenue
,,rNo.N r,Ihl a l-
nues OF information for checking up
delinuuents. One OF these IS tue
"informatiOn at source provision vi
the revenue act, requiring reports vi
naVments TO others or Sl,VoU oi
more during the calendar year l9ZV.
These reports are carefully checked
with The individual return of taXpay-
er 10 whom such payments were
made.
The Commissioner OF Internal
Revenue and his assistants, whose
|duty il. is 10 see that the internal
revenue laws are properly complied
with have authority to examine ali
books papers, and memoranda OF
taxpayers, and to examine unueI
oath persons having information IN
the premises. AS soon as practicable
after March Is there is posted in the
! omces of collectors of internal reVe-
nup. branch offices, and post Offices
list giving the names and address
IS of persons in the collectors dlS-
rricts who have filed returns.
Prompt Action Urged
| The Bureau of Internal Revenue
/ urges taxpayers not to delay in the
/ fling of their returns, and to pay the
fax. if possible. in full at the date
/ of filing. or in as few installments as
! nossible. By far the greater number
/ of taxpayers whose income for the
/ yrar 1919 was less tnan $4,000 paid
! in fun when filing their returns Ii
Iq.u. The number of such taNpa5
ers was approximately ), 3,l4o,"VV
while only 730 900 took advantag"
] of the installment plan. The mum
/ her OF taXpay ers with incomes Ill eH-
! vess of $4,000 paying in full at tht
J time OF filing their returns III l9Io
was approximately 1873 900, ana the
numbcr making payments under tne
inslalimont plan was approximately
$50, ,0HQ.
PAYMENT OF the tax may be made
hr cash, money order, or check
= Checks and money orders should be
I made out to Collector OF Internal
Revenue" The bureau advises that
payment be made by either check oil
+ money order as this method saves d
trip TO the collectors Office and in
, sures avoidance OF congestion dur
ing the closing days of the taX-flins
period.
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