The Wolf Point herald. (Wolf Point, Mont.) 1913-1940, 1923-03-01
INCOME TAX SERIES
FACTS BOILED DOWN
Continued from last week.
Number -Four

+ In making out his income tax re-
turn for 1922, the taxpayer is re-
quired to include all items of gross
+ income. In the case of a store
, keeper the gross income consists
, usually of the gross profits on sales
! together with income from other
!, sources. The returns must show the
gross sales purchases, and cost of all
goods sold. To reflect net income
correctly, and to ascertain gross in
come, inventories are ordinarily re-
quired as of the beginning and end
of each taxable year. The profes-
sional man, doctor, lawyer, dentist,
must include all fees and other com
The farmer is required to report
as gross income all profits derived
from the sale or exchange of farm
produce, including crops and live
stock, whether raised on the farm
or purchased and sold. A farmer
who rents his farm on the crop shar-
ing basis must report such increase
for the years in which the crops are
sold. Profit obtained from the sale
or rental of farm lands also must be
reported.
In order that they may obtain full
advantage of the deductions from
gross income to whihc they are en-
titled. taxpayers are advised by col
~lectors of internal revenue to study
carefully the instructions on the
forms for making returns under the
head 'Income from Business of Pro-
fession."
Number Five
Liability to file an income tax re-
turn for the year 1922 is determined
by a persons status on the last day
of the taxable year, Dec. 81, if the
return is made on the calendar year
basis. as most are. If on that date
he was single he must file a return
if his net income for 1922 was ST.
600 or more, and he is allowed only
an exemption of $1,000. If he was
married on December 81, he is grant
ed the exemption allowed a married
person for the full year, $4,000 if his
income was $4,000 or less, and 81
900 if his net income exceeded So
600. The brides income, however,
must be considered with that of her
husband, the larger exemptions be-
ing allowed married couples living
together. A widow or widower
spouse died before the end Of
the year is classed as a single person.
Divorces and persons separated by
mutual consent are also classed as
persons. /.
Similar conditions exist in this re-
spect to the head of a family. #,
the year, his support of rel
at'ves ceased he is entitled only to
the $1,000 exemption. A man who
has a dependent child, not mentally
or physically defective, that attains
the age of 10 years just before the
close of the taxable year, cannot
claim the $500 exemption for a de-
pendent.
Number Six
To avoid penalty, income tax re-
,urns must be filed with the collect
II of internal revenue for the dist
riot in which the taxpayer lives or
mas principal place of business on or
before midnight of March Is, 1928.
Where additional time is required
because of illness Or absence of the
taxpayer from home, the collector
may grant, upon application before
The return is due, March Is, an ex-
of not to exceed 30 days.
If an accurate return cannot be
made within the 80 day extension
period. a request for a further extern
sion must be made to the Commits /
;ioner of Internal Revenue, Wash
ngton, D. c.. Collectors have not
authority to grant an extension ex-
30 days. /
Failure to make a return on time (
subjects the delinquent to a penalty |
# $1,000 and an additional penalty I
If 25 per cent of the amount of tax +
lue. If the failure is willfull, how {
.ver, or an attempt is made to evade (
he tax by filing a false return, the {
offender is liable to Imprisonment {
md to a fine of not to exceed $10.- +
100 and costs, in addition to a penal F
Y of SO per CEN of the amount of E
ak evaded. {