The Washington times., 1922-02-23
INCOME TAX
IN NUTSHELL

LIN NUlOHLLL
WHOi Single persons who had
net income Of $1,000 or moro,
or gross income OF 5000 or
more. Married couples who had
, net income OF 1000 or moro, or
gross income Of 5000 or more.
WHENf March Is, 1879, 10 final
date for filing returns and max
Ing first payments.
WHERES Collector Of internal
revenue for the district In
which the person lives, or has
his principal place Of business.
HOWL Four per cent normal tax
on taxable income up to $4,000
in excess of exemption. Eight
per cent normal tar on balance
Of taxable income. Surtax from
per cent to IS per cent on net
incomes over 5000 for the year
1921.
Income Tax Facts.
Heavy penalties are provided by
the revenue act of 1921 for failure
or "willful refusal" to make a re-
uired income tax return and pay
time-on or before March IL IL the
return is filed on a calendar year
basis. II taxpayer makes his re-
turn on the basis of a fiscal year
II should be filed on or before the
18th day Of the third month follow
ing the close of the fiscal year.
For failure to file a return on
time a taxpayer becomes liable to
a penalty Of not more than 81 200
and further penalty Of twenty-five
per cent. of the amount Of the tax,
unless he later files a return and IL
is satisfactorily shown that the de-
was due to a reasonable
cause and not to willfuf neglect.
Fur wiliful refusal to make a re-
turn 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 prosecu-
ton, and a penalty Of twenty-five
per cent. OF the amount Of the
tax. II any installment is not paid
when due the whole amount OF the
tax unpaid becomes due and payable
upon notice and demand by the col
lector. and II not paid within ten
days after such demand a five
per cent. penalty accrues with in
terest at the rate Of one per cent
q month until paid.
When Penalty Attaches.
When a return is 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
4. 80 tho Aafintanru af tho rate
of one-half OF I per cent per month.
II the understatement Is due to
negligence or to intentional disregard
of authorized rules and regulations
with knowledge thereof, but without
intent to defraud, there is to be added
per cent of the total amount OF the
deficiency plus interest at the rate
of / per cent a month from the time
the tax was due. II the understate-
ment Is false with intent to evade the
tax the penalty Is a fine of not more
than S10,0 900 or one years imprison-
ment, or both, together with the costs
OF prosecution, and so per cent of the
total amount of the deficiency which
is added by assessment to the tax.
II for any reason a return can not
be filed by the due date, application
may be made to the collector OF in
ternal revenue of the district in which
the taxpayer lives or has his princi-
pal place of business, setting forth
the facts as to the taxpayers inabil.
ity to file on time. Upon showing a
reasonable excuse, such as absence,
illness, etc. the collector may grant
an extension of time not to exceed
thirty days in which to file the re.
turn. II further extension Of time
is require&application must be made
to the commissioner of internal reve'
nue., the collector having authority to
grant only an extension not to ex'
coed thirty days.
The commissioner may grant an
extension on a reasonable cause
shown, not exceeding, six months
This six months limitation. however
il not applicable to taxpayers who
are abroad. When the payment OF u
quarterly instalInent il postponed a:
the request of a taxpayer, there Is
added as part of such instalment, UNI
I'll paid, interest ut the rate Of one
half of 1 nor rent a month from the