The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-01-22
1921 Income Tax Facts You Should
Know.

What was your income for 1920?
An answer to this question as re
puircd by the government Of every
single person Oman, woman. or child)
III The United States whose net income
for last year was 900 or more, and
OF every married person whose net in
come WAS $1,000 or more. Heavy pen
"l""S arc provided by the revenue act
Tor those who fail or "willfully re-
fuse" 10 comply.
IN" period for filing returns for the
calendar year 1920 is from January L
10 March 10. 1921. The bureau of
internal rcNcnu" estimates that with
IN this period there will be filed A.
ooo,on0 individual income tax returns.
II Is certain percentage of these re-
'"fhS Will be incorrect. not because Of
UShon"St intent on the part of the
taxpayer but because of error in maxi
ih& ont the forms. Erroneous inter-
pretaton of the law and regulations
governing the collection of the income
tax and carelcssness cause numerous
! mistakes, and result in the initial
assessment and collection OF consid-
! 'fab!y greater or lesser amounts
than are actually due. Frequently
these mistakes result i'm oVerpay-
mcnt, return of which is made upon
a claim for refund. Where, upon YER
! ification and audit, underDavments
are shown, taxpayers as a rule are
prepared 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
mont
Bureau Aids TAXPAYERS.
/ 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 interpreted by
rulings and regulations of the treas
ury department.
There has been prepared with the
official approval of the bureau a Sc
ries Of short articles of which this is
the first, telling the taxpayer how to
make out his 1920 return when and
where to file ii, 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 infor-
NATIVE way. While there is no ac-
tual change in the law, there have
been issued during the last year many
rulings and decisions bearing on its
various sections, all Of which are of
benefit to the taxpayer in the making
of Il correct return.
1920 Exemptions.
The exemptions for 1920 are ST.
900 for single persons, $4,000 for
married persons and heads of fami-
lies, plus 5000 for each dependent if
under Is years of age or incapable
of Self-support. The normal rate is
per cent on the first $4,000 of net
income above the exemptions and 8
per cent on the remaining net income.
This applies to every citizen and res
ident of the United States Alien
nonresidents receiving income from
; sources within the United States are
: taxed TO the full per cent on net
income from such sources. The Sur
tax rates range from l per cent on
p income between $4,000 and $4,000 to
: 60 per cent on income in excess of
, $1.0OO,OO0. NET income" is gross
income less certain specified deduc-
tions.
May Pay i'm InStallmcntS.
: The tax, this year as last. may he
paid in full at the time of filing the
return, or in four equal installments
due on or before March Is, June Is
september Is, and December Is. The
5 first lnstallment must accompany the
filing of the return. Forms 1040A for
incomes Of $4,000 and less and 1O4O
; for incomes Of more than So 900 have
been revised and contain instructions
which ii carefully read and followed
will be of great aid to the taxpayer
in the making Of his return.
Forms will be sent to persons who
last year filed returns of 1919 income
Failure TO receive form, however,
does not relieve a person of his obli-
cation TO iile a return and pay the tax
time. Copies may be obtained from
offices of collectors of internal reve-
nue., branch offices, and banks. The re-
turn. sworn to before notary, or
other person authorized to admins
ter oaths, must be filed with the col
lCct0r for the district in which the
taxpayer lives or has his principal