The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1922-02-23
INCOME TAX IN NUT SHELL
No 4

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Farmers, rangers, herders, dairymen,
truck gardeners, vineyard, and orchard
owners, and other food producers must
compute their net and gross incomes
for 1921 and ascertain whether an in
come tax return, or a tax, or both are
due. All gains, profits, and income
derived from the sale or exchange of
farm products, whether produced on
the farm or purchased and resold,
must be included in gross income.
When farmer exchanges his products
Tor groceries, clothing, or other mer-
chandse, the fair market value of such
goods must be included. Profit re-
ceived from the sale of farm land, or
rent received for the use thereof, must
he included.
In determining income, upon which
the tax is assessed, the farmer may de-
duct from gross income all necessary
expenses incurred in the operation of
his farm during the year 1921. These
include cost of cultivation, harvesting,
and marketing of his crops, cost of
feed and fertilizer used amount spent
in repairs to farm buildings (other than
the dwelling) and to fences and ma
chmery. Wages paid to farm hands
are deductible, but not wages paid to
a domestic servant, which is a personal
expense.
As an aid to farmers, the Bureau of
Internal Revenue has prepared a spe-
cial form, l0lOF, for recording sales of
live stock, produce, and summary
which must he attached to the individ-
ual return of income and expenses.
An unmarried or widowed farmer or
one living apart from his wife must
file an individual return for 1921 if
his net income for 1921 was 81 900 or
more, or if his gross income was $4,000
or more, If married and living with
his wife on December 81. 1921. a re-
turn must be filed if his net income was
$1,000 or more, or if his gross income
was $4,000 or more
No, )
Former soldiers and sailors, in filing
an income tax return for 1921, should
not include as gross income any
amount received under the provisions
Of the war risk insurance and voca-
tional rehabilitation acts and as pen
sions from the United States for mill
tary or naval service during the war.
The special exemption of S3,5OO for
merly allowed soldiers and sailors in
active service is not continued by the
revenue act of 1921 persons in act
i've military or naval service of the
| United States" are allowed only the
exemptions granted other individuals,
$1,000 if single Cor if married and not
living with husband or wife); $4,000
if married and the combined net in
come of husband and wife was $1,000
or less; and $4,000 if married and the
combined net income of husband and
wife was more than $4,000.
An unmarried soldier sailor, ma
rine, or eX-Service man must file a re-
turn if his net income from all sources
for 1921 was $1,000 or more or if his
gross income was $4,000 or more. If
married and living with his wife on
December 81, 1921, he must file a re-
turn if the net income of himself and
wife and dependent minor children was
$1,000 or more, or if the combined
gross income was $4,000 or more.
No
To avoid penalty, income tax returns
must be in the hands of collectors Of
internal revenue on or before midnight,
March l5, 1922
Every taxable return must be ac-
companied by a payment of at least
one-fourth Of the total tax due. Ex-
tensions of time fo' filing returns are
allowed only in exceptional cases, i'll
ness, absence, etc, Applications for
extensions under these circumstances
! should be addressed to the collector of
internal revenue for the district in
which the taxpayer lives. No cxten-
sion beyond thirty days can be granted
by collector, Requests for further
extensions must be addressed to the
Commissioner of Internal Revenue,
Washington, d. c.
For failure to make a return ON time
the penalty is a fine of not more than
$1,000, plus % per cent of the tax due.
For failure to pay tax when due or
for underslatcment Of the tax through
negligence there is a penalty of 5 per
cent Of the tax, plus interest at per
cent month until paid. For making
a false or fraudulent return the pen
atty is q fine Of not more than 10000.
or not exceeding one years imprison-
mcnt, or both, together with the cost
Of prosecution and an additional as
sessment Of 80 per cent of The amount
Of tax paid,