Abbeville progress. (Abbeville, Vermilion Parish, La.) 1913-1944, 1921-01-15
INCOME TAX FACTS
TO INTEREST PUBLIC
A Series of Answers Given to
Solve Perplexing Problem
70 Making Returns.

come for 1920?
An answer to this question Is re-
duired by the government OF every
single person oman, woman or chlIuj
in the United States whose ret IN
come for the last year was $1,000 or
more. and Of every married person
whose net income was $1,000 or more.
Heavy penalties are provided by the
revenue act for those who fail or will
fully refuse" to comply.
The period for filing returns Tor
the calendar year 1920 Is from janu-
airy / to March IS, 1922 The bureau
OF internal revenue estimates that
within this period there vii! be filed
900 900 individual income tax re-
turns. Il is certain 4 percentage or
these returns will be Incorrect not be-
cause of dishonest intent Oh the part
of the taxpayer. but because OF error
I'm making out the forms. Erroneous
INTERPRETATION of the law and regula-
tions governing the collection of the
income tax, and C,.rolessnesS cause
numerous mistakes, and result in the
initial assessment and collection OF
considerably greater or lesser amounts
than are actually due. Frequently
these mistakes result in overpay-
ment. return of which is made upon
a claim for refund Where. upon yeri-
fication and audit. underpayments are
shown. taxpayers, as a rule, are pre-
pared promptly to amend their re-
turns and pay the additional tax due.
In either event, there is trouble for
both the taxpayer and the govern
ment.
To the end that this year such er-
rors may be reduced to minimum,
the bureau of internal revenue is max
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-
partment.
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 difficult
ties. Errors most frequently noted in
the audit of previous returns have
been divided into classes, each of
which will be treated in an informa-
tive way While there is no actual
change in the law, there have been
issued during the last year many rul-
ings and decisions bearing on its vari-
GUS sections, all of which are of bene-
fit to the taxpayer in the making OF
q correct return.
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-sup-
port. The normal rate is per cent
on the first $4,000 of net income above
the exemptions and s per cent on the
remaining net income. This applies
to every citizen and resident of the
United States. Alien non-residents re.
ceiving income from sources within
the United States are taxed to the full
s per cent on net income from such
sources. The surtax rates range from
per cent on income between $4,000
and $4,000 to 65 per cent on income In
excess of $1,000. 900 Net income" Is
gross inco.Ie less certain specified re
auctions.
The tax this year, as last. may b,
paid In full at the time OF filing the
return. or In four equal installments
due on or before March 10. June Is
September Is and December Is. Tn,
first installment must accompany tn,
filing of the return. Forms l040A 70
incomes of $4,000 and less and I04
for incomes of more than $4,000 hav,
been revised and contain instruction
which. il carefully read and followed
will be OF great aid to the taxpaye
In the making of his return.