Twin city review. [volume] (Champaign, Ill.) 19??-1929, 1924-06-13
INCOME TAN RE-
DUCTION NEWS
FROM SCHMA\ER

OF special interest II taxpayers is
The provision carried IN the new
revenue law II The edeeg that the tax
on income received ~ individuals in
The calendar year tas3 Nill be rc.
duced hN 60. fhis means that every
individual Nho Is subject Il Income tax
will &c relieved en enc fourth of the
tax liability which he reported on
the return fled On or prior tn March
10th, OF II Tie tax Was paid Ia full
that he viii receive refund of one.
fourth of his payment.
Individuals nho paid only one
fourth of their tax in March. however.
should not make the mistake OF think.
ing they may take credit for the full
40 reduction Al once and not pay
anything when the second inssallmen,
comes due. Tie neW law provides that
the se reduction shall be poratod
over all four installments. For in-
stance, II an individual reported taN
of 500 on his return, lie can eonsid-
er that the new laN has reduced bis
laN 20 $50. II he paid 50, or one
toutth of the amount reported when
he tled his return, then be must pay
Sl2.oo on OF before June 10Th, This
amount, together With the $50 pre-.
vlously paid, will make up one half
of the S3a, Tie tax remaining unpaid
after June 10th may be paid ia eaeal
tnslallmonts on or before September
10th anu December 10th, respectively,
considerable number of individ.
uals Who are accustomed 10 paying
all their tax when they file their re
turns anticipated the 2bse reduction,
aud this year paid only three-fourthe
of the amounts reported on thelr re-
turns. This class Of taxpayers Wilt
Of course, have nothing further TO pay
this year, unless additional tax Is dis
closed when their returns are audit
ed. There will. no doubt. be many
individuals who will desire to settle
their taN accounts In full nov that the
2att reduction Is an accomplished
fact. The amount due in any instance
where taxpayer desires te pay in
full will be the total amount Of taN
shown at the time of filing the return,
less 26ft, aud less the amount paid at
the time of filing the same Tho Col
lector OF Internal Revenue states that
such action would be advantageous
from the Governments viewpoint as
lt would eliminate considerable book
keeping.
The payment made in June, plus the
amount already paid, must equal one
half OF the total tax due, after tax.
ing tho 2afe deduction. Likewise,
the amount paid in September plus
the amount previously paid must epuAl
threefoufths Of the total tax liability
after the 2b9t deduction has been
taken. The remainder OF the tax ia
bility will be payable on or before
December 18th.
In cases where taxpayers paid the
full amounts of tax shown on their
returns, refunds will be made of one
fourth of the amount. 1t will not be
necessary fer claims TO bo filed. In
fact correspondence from taxpayers
relative TO such refunds will probably
serve to slow down the work of the
Collector in listing all the items and
sending the necessary schedule TO
Washington In order that the checks
may be drawn. The Collector states
that this work will be carried on az
rapidly as it can be performed by his
force of employees.
This 2bfo REDUCTION OF 1923
INCOME TAX DOES NOT ArrLN
TO CORPORATIONS BUT TO IN
.DlNIDUAIS ONLY,