Arizona republican., 1922-02-14
Income Tax Facts
You Should Know
Series Of Fifteen Articles Prepared
by the Bureau of lntsrnal
Revonuc Of informative
Value to Millions.

No. 10.
Heavy penalties are provided by
the revenue act of 1921 for failure or
"willful refusal" to make a required
income tax return and pay at least
one fourth of the tax on time-on or
before March Is If the return is filed
on a calendar year basis. II tax
payer makes his return on the basis
of fiscal year ii should be filed on
or before the 18th day of the third
month following the close of the fis-
cal year.
For failure to file a return on time
a taxpayer becomes liable TO a pen
atty of not more than $1,000 and
| further penalty of 25 per cent of the
amount of the tax. unless he later
| files a return and it Is satisfactorily
shown that the delinquency was due
| to a reasonable cause and not to will
! flll neglect. For willful refusal to
make a return and pay the tax on
time a taxpayer becomes subject to
a fine of not more than $4,000 or
one years Imprisonment, or both. to-
! gether with the costs Of prosecution,
and a penalty of 25 per cent of the
i amount of the tax. If any installment
is not paid when due the whole
amount OF the tax unpaid becomes
due and payable upon notice and de-
mand by the collector. and If not paid
within 10 days after such demand a
per cent penalty accrues with in
terest at the rate of / per cent a
month until paid.
When Penalty Attaches
When a return lis made in good
faith and an understatement of the
amount of the tax therein is due to
no fault of the taxpayer, no penalty
attaches. but interest attaches to the
amount of the defiency at the rate OF
one-half of per cent per month. II
the understatement Is due to negli-
gence or TO intentional disregard OF
authorized rules and regulations with
knowledge thereof. but without in
tent to defraud. there is to be added
per cent of the total amount of the
deficiency plus iterest at the rate Of
per cent a month from the time the
tax was due. II the understatement Is
false with intent to evade the tax the
penalty is a fine of not more thar
$40, 900 or one years imprisonment
or both. together with the costs oi
! prosecution. and 90 per cent of ths
total amount Of the deficiency which
. Is added by assessment to the tax.
II for any reason a return can no
! be filed by the due date, application
| may OS UldQG 10 the CO4lt1NOA u AiA'
ternal revenue of the district in which
the taxpayer lives. or has his prime
ipal place of business, setting fortl
the facts as to the taxpayers in
ability to file on time. Upon show
ing a reasonable excuse. such as alb
sence, illness, etc. the collector ma,
grant an extension OF time is re
quired application must be made I
. the Commissioner of Internal Reven
ue, the collector having authority I
: grant oYiy an extension not TO eXcee
80 days.
The commissioner may grant a
extension on a reasonable caus
shown. not exceeding six months
I This six months limitation. howeve
!. is not applicable TO taxpayers VIII
= are abroad. When the payment of
! quarterly installment is postponed I
;. the request of taxpayer there
added as part OF such installInen
until paid. interest at the rate Of ons
: half of ! per cent month from Il
T date the installment would have bee
q due IL no extension had been granite
: Receipts Given On Request
Collectors, If request is made. al
0 required to give to taxpayers write
/. or printed receipts for income, ea
J. cess profits and war profits take
stating the amount paid and II
4 particular account for which sue
n payment was made. Payments ma