Norwich bulletin., 1921-01-14

may be reduced to minimum, the bu- | reau of internal revenue is making spe- l cial effort to inform taxpayers of their | right and duties under the revenue act as interpreted by rulings and regulations of the treasury department
 There has been prepared with the off, cial 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 difficulties Errors most frequently noted in the audit of previous I'returns have been divided into classes, each of which will be treated in an in- formative way. While there is no actual change in the law, there have been is-
 sued during last year many rulings and
 decisions bearing on its various sections, all of which are of benefit to the taxpay- CT in the making of correct return. | The exemptions for 1920 are $1 900 for single persons, S2,0OO for married per sons and heads of families, plus $200 for each dependent if under Is years of age 1 or incapable of self-support The nor. nal rate of per cent on the first S4,000 ! 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
 receiving income from sources within the United States are taxed to the full s | per cent on net income from such l sources The sur-tax ranges from per
 cent. on income between 5000 and S6,- i 900 to 65 per cent. on income in excess of i s1 .000. .000 .Net income" is gross ip- i come less. certain specified deductions. May Pay in Installments.
 The tax, this year, as last, may be -, 4I,A i turn. or in four equal installments, due on or before March 15, June 15, Sept. 15 and Dec 15., The first instalment must l accompany the filing of the return. Forms 104QA for incomes of 5000 and l less and 1O40 for incomes more than S5,- i GOO have been revised and contain in- structions which, if carefully read and followed, will be of great aid to the tax payer in the making of his return.
 i Forms will be sent to persons who last year filed returns of 1919 income. Fail ure to receive form, however, does not l relieve a person of his obligation to file
 return and pay the tax on time. Copies ] may be obtained from offices of collec- i tors of internal revenue, branch offices | and banks. The return. sworn to be- 1 fore a notary or other person authorized 1 to administer oaths. must be filed with the collector for the district, in which 1 the taxpayer lives or has his principal [ place of business
 New Tax Ruling Explained.
 Corporations taking advantage of a re-
 cent treasury ruling. allowing them in i their 1920 income tax returns to again change the manner of reporting their in- ventories to either a cost basis or a'"cost or market. whichever is lower," basis, are reminded by Collector James J, Wals!l, that the inventories of corpora
 tiGns on whatever basis taken will be subject to investigation and taxpayers
 are required to show the correctness of
 the prices adopted. Previous to this new ruling, the act Of 1918 specifically granted authority tc provide for the taking of inventories on
 any basis consistent with sound commer-
 cal practice and which would reflect 8