Smyrna times., 1922-01-18
FEDERAL INCOME TAX AND
THE LAW FOR FILING SAME
COLLECTOR OF INTERNAL REV.
ENUE ISSUES STATEMENT
Approach of Expiration Date Finds
Office Swamped With Inquiries and
the Following Statement Issued

Oince Swamped With Inquiries and
the Following Statement Issued
The following statement is issued
by Collector of Internal Revenue H.
I. Graham, District of Delaware,
Forms 1040A, revised and simpli-
fled, for filing individual returns of in
come for the calendar year 1921 of
$4,000 and less will be available on
Wednesday, January Is at the office of
Collector of Internal Revenue H. T.
Graham, Post Office Building. A copy
will be mailed to taxpayers who last
year filed a return, but failure to re-
ceive the form does not relieve a tax
payer of his obligation to file return
on time-on or before March Is, 1922
The form has been reduced from six
to four pages, two of which are de-
voted to instructions which should be
carefully read by the taxpayer before
/ filling in the blanks. A study of these
instructions will greatly lessen diff
culties heretofore encountered in cor
rectly making out the returns.
On page l, under the head of "In-
come" are spaces for reporting the
following items: salaries, wages, COM
missions, ETC.; income from partner
ships, fiduciaries, ETC.; rents and roy
alties; profit (or loss) from business
or profession; profit (or loss) from
sale of real estate; profit (or loss)
from sale of stocks, bonds, ETC., and
other income. Beneath are spaces for
entering deductions, such as interest
and taxes paid during the year; losses
by fire, storm, shipwreck, or other cas-
ualty or by theft, contributions, bad
debts, etc.
On page are spaces for entering
explanations of the various items; i.
e., the total amount of income from
business or profession, with descrip-
tion ("grocery", "retail clothing
"drug store" laundry" doctor
"lawyer," "farmer') from rents, anC
royalties, sale of property, etc.
= Returns are required of every sin
I gle person and every married persOr
not living with husband or wife
whose net income for 1921 was $1,000
or more, and of every married person
| living with husband or wife whose ne
income was $4,000 or more. If th'
/ combined net income of husband anC
| wife and dependent minor children
| equalled or exceeded $4,000, or if th'
| combined gross income of husband
wife and dependent minor children
equalled or exceeded $4,000, all sucl
| income must be reported on a join
| return or in separate returns of hus
band and wife. If single and the ne
income including that of dependen
| minors, if any, equalled or eXceede,
$1,000, or if the gross income equalle'
| or exceeded $4,000, a return must b
filed. A minor, however, having a ne
income of $1,000 or $4,000, according
to martial status or gross income o
$4,000, must file a return. The re
quirement to file a return of gross in
come, regardless of the amount of ne
income, upon which the tax is assess
ed is a new provision.
| "Net income" is gross income les
certain deductions which are explain
ed on the form.
| Under each of the above conditions
a return must be filed even though n
tax is due. The exemptions are $1OO
for single persons and married PEI
sons not living with husband or wifi
$2500 for married persons living wit
husband or wife whose net income fC
1921 was $4,000 or less and 5000 fC
: such persons whose net income W;
n more than $4,000. The exemption
U for depedents "a person under -eigl
W teen years of age or mentally or phi.
NJ sically defective" has been increase
W from 5000 to $400.
N A head of family-a person WI
w actually supports, in one househo
W one or more persons related to hi
W Cor herr by blood, marriage or ado
81 ton, is granted the same exemption
W allowed a married person.
W The normal tax rates are unchan;
M ed, per cent of the first $4,000 of n,
W income above the exemptions and
" per cent on the remaining net incom
~ The tax this year, as last, may
W paid in full at the time of filing Il
" return, or in four equal installment
W due on or before March Is, June l
W September Is and December Is.
W Heavy penalties are provided
~ the new revenue act for failure to fl
W a return and pay the tax on time.
~ Announcement will be made throue
~ the press of the date of release
W Forms 1040 for filing individual r
~ turn of income of more than $4,000.