The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1922-02-25
NCOME.TX FACTS.

Heavy penalties are provided by the
revenue act of 1921 for failure or will
| ful refusal, to made required in
come tax return any at least one
| fourth OF the tax on time-on or be-
| fore March Is if the return is filed on
calendar year basis. If taxpayer
makes his return on the basis of a
fiscal year il shuold be filed on or be-
fore the 18th OF the tihd month fol-
lowing the close OF the fiscal year.
For failure to file return on time
taxpayer becomes liable to a penalty
Of not more than $1,000 and farther
penalty of % per cent. OF the amount
of the tax. unless he later files a re-
turn and it is satisfactorily shown that
the delinquency was due 10 rseason-
able cause and not to willful neglect.
For willful refusal to make Il return
and pay the tax on time a taxpayer
becomes subject to fine Of not more
than $4,000 or one years imprison-
ment, or both, together with the costs
Of prosecution, and penalty OF % per
cent Of the amount OF the tax. II any
istallment is not paid when due the
whole amount OF the tax unpaid be
comes due and payable upon notice
and demand by the collector, and if
not paid within 10 days after such de-
mand 5 per cent. penalty accrues
with interest at the rate of | per cent.
a month until paid.
When a return is made in good
faith and an understatement of the
of the tax therein is due to
no fault of the taxpayer, no penalty
attaches, but interest attaches to the
amount Of the deficiency at the rate OF
OF l per cent per month. Ii
the understatement is due to negli- !
yence or TO intentional disregard OF |
authorized rules and regulations with |
thereof. but without intent |
o defraud. there is to be added 3 per
'ent. of the tolta mauno of the defic-
ency plus intereste at the rate of !
yer cent. per month from the time the
AK was due. II the understatemcnt is
alse with intent to evade the tax the
,enalty is fine of not more than
10000 or one years Imprisonment. or
9TH together with the costs of prose-
ufion, and 80 per cent. of the total
mount of the deficiency which is add
d by the assessment to the tax.
II for any reason a return can not
g filed by the due date, application
lay be made to the collector or inter-
al revenue of the district in which
he taxpayer lives or has his principal
lace Of business, setting forth the
acts as to the taxpayers inability tot
lie on time. Upon showing a reason
BILE excuse, such as absence. illness, ,
C., the collector may grant an extern
on of time not to exceed 80 days in
hich to file the return. If further
tension Of time is required applica-
ust be made to the Commissioner of
lternal Revenut, the collector having .
to grant only an extension
" to exceed 80 days.
The commissioner may grant an ex-
nslon on a reasonable cause shown, I
It exceeding six months. This six Z
onths' limitation, however. is not ap-
icable to taxpayers who are abroad.
hen the payment of parterly in
allment is postponed at the request Z
a taxpayer theer is added as part of )
CHI installment, until paid, interest
the rate Of one-half Of / per cent.
months from the date the Install Z
ent would have been due II no ex- ;
nsion had been granted.
Collectors, II request Is made, are
quired to give to taxpayers written
printed receipts for income, excess
Gifts and war-profits taxes, stating
Q amount paid and the particular
count for which such payment was I
lde. Payments may be made either \
the Offices OF COLLECTORS OF internal 4
venue or branch Offices, either In
nh or by money order or check y
ecks and money orders should be
ide out TO the collector OF Internal q
venue In the city In which the col =
tors Office is located, For example v
nllcct0r of Internal Revenue, Bnlli' {
no. Md" Tho Bureau Of Internal r
venue advises that payments BIO =
do either by check or money order, y
this method caves trip 10 the coll
tors Office and Insures avoidance OF =
Igestion during tho closing days OF =
tar filing period II check re-
sed by tho collector Ia not paid by j