Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1923-02-08
Facts About Income Tax

turn for the year 1922, the taxpayer
is required to include all items OF
gross income. In the case of a store
keeper the gross income consists US
ually of the gross profits on sales. to-
gether with income from other sources
The returns must show the gross
sales, purchases, and the cost of
goods sold. To reflect net income cor
rectly, and to ascertain gross income
inventories are ordinarily required as
of the beginning and end of each tax
able year. The professional man, doc
tor, lawyer, dentist, must include all
fees and other compensation for pro-
fessional 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, wheth-
er raised on the farm or purchased
and 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 OBJ
tanned 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 are entitl
ed, taxpayers are advised by collectors
of internal revenue to study carefully
the instructions on the forms for MAX
ing returns under the head Income
from Business or Profession"
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. December 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 $1,000 or
more, and he is allowed only an exem-
ption Of $1,000 If he was married on
December 81 he is granted the exemp-
ton allowed a married person for the
full year, $1,000 if his net income was
SIS, 600 or less, and $4,000 if his net
income exceeded $4,000 The brides
income, however, must be considered
with that of her husband, the larger
exemptions being allowed married
couples living together. A widow
whose spouse died before the end of
the year is classed. as single person
Divorces and persons separated by
mutual consent also are classed as
single persons.
Similar conditions exist with respect
to the head of family. If, during the
year his support of relatives ceased
he is entitled only to the $1,000 ex-
emption A man who has a dependent
child, not mentally or physically de-
fectiye, that attains the age of IS
years just before the close of the tax
able year, cannot claim the $500 cred
it for dependent.
To avoid penalty, income tax re-
turns must be filed with the collector
of internal revenue for the district in
which the taxpayer lives or has prin-
cipal place of business on or before
midnight of March, 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 Is, an extension
of not to exceed 80 days. If an accur-
ate 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. Collectors
have not authority to grant an extern
sion exceeding 80 days.
Failure to make return on time