Imperial Valley press., 1921-12-12
INCOME TAX
QUESTIONS ARE
ANSWERED HERE
Continued from Page u

on the amount of his taxable income
of S2500, or S100, plus the amount by
which his net income exceeds $4,000.
Many inquiries are received rea-
tive to the surtaX rates.
Taxpayers in the preparation of
! their returns should be careful to note
that the surtaX rates for the calendar
year 1921 remain unchanged. The
surtaX rates on incomes for 1921
range from 1 per cent on the amount
of net income between $4,000 and
$4,000 to 50 per cent on the amount Of
net income in excess of S1,000,000.
For the calendar year 1922 and each
calendar year thereafter, the surtax
ranges from l per cent on the amount
of net income between $4,000 and S10,-
600 to so per cent by which the
amount of net income exceeds $780,
/ 900.
Returns are required of every sim
gle person whose net income for 1921
was $1,000 or over, every married per-
son not living with husband or wife
whose net income was $1,000. and
every married person living with nus
band or wife whose net income was
$4,000 or over. Every person whose
gross income for the year was $4,000
or over must make return regardless
of the amount of net income. This re-
qulremert was not contained in the
ravenuc act of 1918. Every married
couple living together must make a
return, either separate or joint as 0e-
sired, if their aggregate net income
was $4,000 or over, or if their aggre-
gate gross income was $4,000 or more
Gross income includes practically
every dollar the taxpayer received
during the year 1921. Net income is
gross income less the exemptions and
deductions specifically provided for by
the act.
The period for filing returns is from
January l to March Is, 1922, when
made on the calendar year basis. If
the taxpayer makes his return on the
fiscal year basis, the return must be
filed on or before the fifteenth day of
the third month following the close of
the fiscal year. Nonresident aliens
must make return on or before the fif-
teenth day of the sixth month follow
ing the close of the fiscal year, or. if
the return is made on a calendar year
basis on or before June Is.
The Commissioner of Internal Rev
enue may grant a reasonable extension
of time for filing returns Except in
the case of taxpayers who are abroad,
no such extension shall be fora period
of more than six months. The re-
turn must be filed with the collector
of internal revenue for the district in
which the taxpayer lives or has his
principal place of business. If the
taxpayer has no legal residence, the
return must be filed with the collector
of internal revenue at Los Angeles.
This year, at least, the tax may be
paid in full at the time of filing the
return, or in four quarterly install
ments, due on or before March Is,
June Is, September - and Decem-
Der IS. If any installment is not paid
when due, the whole amount becomes
due and payable upon notice and de-
mand from the collector. The pen
atty for failure to fill ca return or pay
the tax within the time prescribed is a
fine Of not more than $1,000. For
"Willful refusal" to make return or
pay the tax on time the penalty is a
fine of not more than $4,000, or one
years Imprisonment, or both, together
with the cost of prosecution.