Five Mile Beach weekly journal., 1923-02-02

with income from other sources. Inc
returns must show the gross sales,
purchases and cost of goods sold. To
reflect net income correctly, and to
ascertain gross income, inventories
are ordinarily required as of the be-
ginning and end of each taxable year.
The professional man, doctor, lawyer,
dentist, must include all fees and
other compensation for professional
services.
The farmer is required to report as
gross income all profits derived from
the sale or exchange of farm products,
including crops and live stock,
whether raised on the farm or pur-
chased or resold. A farmer who rents
his farm on the crop sharing basis
must report such income 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 which they areJentitled, tax
payers are advised by collectors of in
ternal revenue to study carefully the
instructions on the forms for making
returns under the head Income from
Business or Profession"
INCOME TAX FACTS, No.
Liability to file an income return
for the year 1922 is determined by a
persons status on the last day of the
taxable year, December 31st, if the re-
turn 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 81, 0 or
more, and he is allowed only an ex-
emption of $1,000. If he was married
on December 31st he is granted the
exemption allowed a married person
for the full year, $4,000 if his net in
come was $1,000 or less, and $4,000 if
his net income exceeded SIS 900. The
brides income, however, must be con-
sidered with hat of her husband, the
larger exemptions being allowed mar
ried couples living together. A widow
or widower whose spouse died before
the end of the year is classed as a
single person. Divorces and persons
separated by mutual consent also are
classed as single persons.
Similar conditions exist with re-
spect to the head of a family. If, dur
ing the year, his support of relatives
ceased he is entitled only to the $1,000
exemption. A mar who has a depend
ent child, not mentally or physically
defective, that attains the age of IS
years just before the close of the tax
able year, can not claim the $500 credit
for a dependent.
INCOME TAX FACTS, No.
To avoid penalty, income tax returns
must be filed with the collector of in
ternal revenue for the district in
which the taxpayer lives or his prin-
cipal 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 re-
turn is due. March 18th, an extension
of not to exceed 80 days. If an accu-
rate return can not be made within
the 80 days extension period, a re-
quest for a further extension must be
made to the Commissioner of Internal
Revenue, Washington, D. G. Collect
ors have not authority to grant an ex-
tension exceeding 80 days.
Failure to make a return on time
subjects the delinquent to ~a~penalty
of 81, 900 and an additional penalty of
25 per cent of the amount of tax due.
If the failure is willful, however, or an
attempt is made to evade the tax by
filing a false return, the offender is
liable to Imprisonment and to a fine
of not more than 10000 and costs, in
addition to a penalty of SO per cent
of the amount of tax evaded.
The Britsch brothers, George, Jacob
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