The diamond drill., 1921-01-22
INCOME TAX FACTS
Payments Are Now Due March l5 Is
"Deadllner- General Information

Nhat was your income Tor l9zO'
An answer TO this question Is re-
quired by the government of every
single person whose net income for
last year was $1,000 or more. and OF
every married person whose net in
come was $4,000 or more.
Heavy penalties are provided by
the revenue act for those who fail
or "wilfully refuse to comply. Rev
enue agents will be in the city and
will give all necessary information
and assistance 20 taxpayers.
General Information
Tile period for filing returns for
the calendar year 1920 Is from Jan
uary to March Is, 1921. The bureau
OF internal revenue estimates that
within this period there will be fled
100000 individual income tax re-
turns. II is certain a percentage Of
these returns will be incorrect. not
because Of dishonest intent on the
part OF the taxpayer, but because
Of error in making out the forms.
Erroneous Interpretation OF the law
and regulations governing the collec-
tion or the income tax and careless
ness 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
repayment. return OF which 1,
made upon a claim for refund. Where
upon verihcation and audit. under
payments are shown, taxpayers as a
rule are prepared promptly to amend
their returns and pay the additional
tax due. In either event there Is |
trouble for both the taxpayer and the !
government.
To the end that this year such err
rors may be reduced to a minimum. !
the bureau OF internal revenue Is /
making special effort to inform tax
payers of their rights and duties un- /
der the revenue act as interpretated
by rulings and regulations OF the
treasury department
There has been prepared with the
official approval OF the bureau a ser
ies OF short articles, Of which this &
the first, telling the taxpayer how
to make out his 1920 return. when and
where to fle it, and what TO do in the
event he meets with unusual Difficult
lies Errors most frequently noted
II the audit Of previous returns have
been divided into classes, each or
which will he treated in an informa
i've way While there is no actual
change IN the law, there have been
ssuod during the past year many rul-
ngs and decisions bearing on IT'S var
GUS sections. all OF which are OF
benefit 10 the taxpayer in the making
II a.correct return
The exemptions for 1920 are $1,000
'or single persons. $4,000 for married
persons and heads OF families. plus
1900 for each dependent II under is
iears OF age or incapable OF seif-sup-
port. The normal rate Is per cent
IN the hrst $4,000 OF net income a.
,ove the exemptions and eight per
.ent on the remaining net income.
This applies TO every citizen and res
dent OF the United States. Alien
receiving income from
sources within the United States are
axed 10 the full eight per cent on net
ncome from such sources. The sur
AK rate change from one per ce>-
,n income between $1,000 and $4,000
o 65 per cent on income In excess
n s1000,000. NET income" Is gross
income less certain specified deduc-
ions.
The tax. this year as last. may be
paid in full at the time OF filing the
-eturn. OF in four equal installments.
iue on or before March 15. June Is.
September 15, and December 15. The
irst instalIment must accompany the
iling Of the return. Forms 1040A
or incomes OF $4,000 and less and
040 for incomes OF more than $1,000
lave been revised and contain In
Itructions which n carefully read and
ollowed will be Of great aid to the