The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1922-02-20
INCOME TAX
IN NUTSHELL

WHO? Single persons who had
net income Of $1,000 or more,
or gross income of $1,000 or
more. Married couples who had
net income of $1,000 or more, or
gross income Of $4,000 or more.
WHENs March Is, 1922, is final
ing first payments.
WHERE? Collector OF internal
revenue for the district in
which the person lives, or has
his principal place Of business.
HOW? Four per cent normal tax
on taxable income up to $4,000
in excess of exemption. Eight
per cent normal tax on balance
Of taxable income. SurtaX from
per cent to s. per cent on net
incomes over $1,000 for the year
1921.
Income Tax Facts.
The revenue act of 1921 authorizes
the Commissioner of Internal Rev
enue and his assistants whose duty
it is to see that the law is properly
compiled with to examine all books,
papers. and memoranda bearing
upon an income-tax return. and to
examine under oath persons having
information in the premises. A new
provision of law is that no taxpayer
shall be subject to unnecessary exI
aminations, and only one inspection
Of the Taxpayers books of accounts
shall be made for each taxable year
unless the taxpayer requests other
wise, or unless the commissioner.
after investigation, notifies the tax
payer in writing that an additional
inspection is necessary.
The act provides that in the
absence Of fraud, or characterization,
the decision of the commissioner
upon any claim presented under or
authorized by internal-revenue laws
shall not be subject OF review by any
other administrative officer, en-
ployee, or agent Of the United States.
Written Agreements Binding.
Except upon a showing Of fraud or
nalfeasance. an agreement in writing
between the taxpayer and the COM
missioner as to the amount of taxes
due is final and conclusive, and, there
fore, binding upon both parties. the
act provides that no suit or proceed
ing for the recovery of any tax or
penalty alleged to have been erron-
eously or Illegally assessed or col
lected shall be begun before six
months from the date of filing (un-
less the commissioner renders a de-
cision thereon within that time), nor
after the expiration of five years
from the date Of payment OF such
tax or penalty.
-
of income, excess profits and war
profits taxes due for the year 1921
and succeeding years shall be deter
mined and assessed by the commits
sioner within four years after the
return was filed, and the amounts
due for prior years within five years
after the return was filed unless the
commissioner and the taxpayer con-
sent in writing to a later determine
ton, assessment and collection. Elk
cept in the case of false or fraudu.
lent return or failure to file Il
required return no suit or proceed
ing for the collection Of such taxes
shall be entered after the expiration
Of five years from the date the return
was filed or became due. This pro-
vision does not affect proceedings
begun at the time of the passage of
the revenue act of 1921, November
%, 1921.
The act provides that under GER
tain conditions interest at the rate
Of y per cent month shall be paid
upon claims for abatement and re-
fund Of taxes enormously collected
from the date of payment of the
tax to the date Of allowance Of the
claim. TaSpayers are no longer in
vited to submit such claim, but upon
audit Of the return they will receive
certificate of overassessment and
a check in correction of the error,
or IL an assessment is outstanding
against the taxpayer for income or
excess profits taxes, the overpay-
ment is applied as a credit and the
balance Immediately refunded.