Norwich bulletin., 1921-01-11
INCOME TAX FACTS
YOU SHOULD KNOW

What was your income for 1920? \ An answer to this question is requir- ed by the government of every single person (man woman, or child) in the United States whose net income for last year was 5000 or more and of every married person whose net income was $2,000 or more. Heavy penalties are provided by the revenue act for those who fail or 'willfully refuse" to comply.
 The period for filing returns for the calendar year 1920 is from January l to March IS. 1921. The Bureau of h. ternal Revenue estimates that within thls period there will be filed 4,0O0,000 in dlvidual Sncorne tax returns. It is cer- tain percentage of these returns will b9 incorrect, not because of dishonest in
 tent on the part of the taxpayer but because of error in making out the forms. Erroneous interpretation of the law and regulations governing the col ! lection of the income tax and careless ness cause enumerous mistakes and re- suit in the initial assessment and col
 lection of considerably greater or less CT amounIs than are actually due. Ire quently these mistakes result in over payment return of which is made upon a claim for refund. Where, upon Yer l ification and audit, underpayments are | sdlow1, taxpayers as 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 errors ! may be reduced to a minimum, the Bu- ! reau of Internal Revenue is making special effort to inform taxpayers Of
 their rights and duties under the revenue act as interpreted by rulings and res
 ulations O. the treasury department | There has been prepared with the of- | fcial approval of the bureau a series of
 Ahort articles, of which this is the first | telling the taxpayer how to make out
 his return for 1920, when and where to
 file 1t, and what to do in the event he
 meets with unusual difficulties, Errors l most frequently noted in the audit of l previous returns have been divided into
 classes, each of which will be treated
 in an informative way While there
 is no actual change in the law, there have
 been issued during the last year many | rulings and decisions bearing on it's va | rious sections, all of which are of benefit
 to the taxpayer in the making of a cor
 rect return,
 The exemptions for 1920 are s1.OOO
 for single persons, S2,0OO for married persons and heads of families, plus S2Oo
 for each dependent if under IS years of
 age or incapable of self support. The
 normal rate is 4 per cent. on the first
 $4,0oO Of net income above the exemption
 and per cent. on the remaining net
 income. This applies to every citizen anc resident of the United States Alien non residents receiving income from sourc es within the United States are taxed tC the tull per cent. on net income iron such sources. The surtax rates rang, l; from Iper cent on income between S5, , 900 and S6,00O to 65 per cent on in
 come in excess of S1.0OO 900. Net in
 come" iA gross income less certain speci
 fled deductions.
 : The tax, this year, as last. may b
 paid in full at the time of fling the re ! i turn, or in four equal installments. d,i on or before March 15, June l5, Septem Der 15, and. December I5 The frs installment must accompany the filing o
 the return. Forms 104OA for income i of 5000 and less and 104O for income e of more than 5,0G0 have been revise a and contain instructions which if care 2 fully read and followed will be of grea d a1d to the taxpayer in the making c
 his return.
 -I Forms will be sent to persons wh 2 last year nled returns of 1919 inco4n, r Failure to receive form, however, doe
 not relieve person of his obligatio n to file return and pa- the tax O. q time. Copies may De oDtaineI from of l. fees of collectors of internal revenue n branch offices and banks. The return Q sworn to before notary. or other perso l. authorized to administer oaths must b e filed with the collector for the distric q in which the taxpayer lives or has hi
 principal place of business.