Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1921-01-27
TAX ACTs
YOU SHOULD KNOW

Heavy penalties are provided by the
revenue act of 1919 for failure or will
full refusal to file within the time pre-
scribed income tax returns for the
calendar year 1920, and to pay the tax
on time. For failure to make re.'-n
on time, on or before March IL, 1871,
the penalty is a fine of not more than
$1,000. An additional assessment of
25 per cent of the amount due may be
applied unless a later return Is fled,
and it is satisfactorily shown that the
delinquency vas due to reasonable
cause. "Wilful REFUSAL to make
return and pay the tax on time Is
punishable by a fine of not more than
$4,000 or one years imprisonment, or
both, together with the cost Of proseca-
ton.
If the tax or any installment 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 fnstruc-
tons on the return serve as notice
and demand in the case Of the first in
stallment, as computed by the taxpayer.
Additional Time.
When additional time for fling
| 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 so days up
| on written application therefor made be-
| fore the return is due, on or before
| March Is. If before the end Of 80
| days extension an accurate return can
| not be made, an appeal for further ex.
tension must be made to the commits
| sioner of internal revenue with a full
recital Of the causes for the delay.
The commissioner win act grant an
additional extension without a clear
showing that a complete rrlurn can
not be made at the end of the 3o-day
period.
When return is made In good faith
| and understatenent 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 /:
added per cent Of the total amount
Of the deficiency, plus interest a tht
rate of per cent. a month from the
time the tax was due. If the under
statement is false. with intent to evad,
the tax the penalty is a ine of no
more than $4,000 or one years i'm
prisonment or both, together with tn
cost OF prosecution and an added as
sessment Of 50 per cent Of the amour
Of the deficiency.
: carefal Check Made.
The bureau of internal revenue ha
at its command innumerable avenue.
of information for checking I'd deIin
quents. One Of these Is the "informa
ton at source" provision Of the revenu
act, requiring reports Of payments I
' others of $1,000 or more during the cal
: endar year 1920. These reports are care
fully checked up with the individual he
turn Of the taxpayer to whom such pay
ments were made.
, The commissioner Of internal revenu
and his assistants, whose duty 1t b t
see that the internal revenue laws ar
j. properly compiled with, have authorit
to examine all books, papers, and mem
VI oranda Of taxpayers, and to examine /
the premises. AS soon as practicabi
after March Is there 8 posted in tn
t offices of the collectors Of internal rev
d enue, branch offices, and post offices
list giving the names and addresses q
| persons in the collectors district VIII
q have filed returns.
Q Prompt Aetioa Urged.
The bureau Of internal revenue urge
taxpayers not to delay in the filing
r their returns in full at the date Of a
\ ing, or in as few instalinents as poss
BILE By far the greater number of ia,
payefs whose income f,r the year 1s1
| was less than $1,000 paid in full whe
r filing their returns in 1879. The nun
It Der of such taxpayers was approximate
q $4,000, while only 75o. 900 took adval