The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1925-02-20

corporations who paid dividends am
ounting to $4,000 or over to any one
individual, partnership, or corpora
ton during the calendar year 1924
must file an information return on
Form 1897 with the Commissioner of
Internal Revenue, Sorting Section,
Washington, d. c., on or before
March Is. 1925. Blanks can be OBJ
tanned upon request from the COllec-
tor. Stock Dividends and Liquidating
Dividends need not be reported.
EARNED INCOME
The new Act provides for % per
/ cent reduction in the tax due on earn
ed incomes up to $10,000.00, and that
! all incomes of less than S5,OOOOO
shall be considered earned. Therefor,
if your net income is less than S5,OOO,
YOU should first compute the tax at
/ . per cent and then reduce the tax by
i deducting one-fourth thereof.
AVOID DELINQUENCIES
The 1924 Income Tax Law, While
it very materially reduced the normal
tax rates, and altered some OF the
administrative provisions OF the law
did not in any manner relieve the Ia
bility of taxpayers to file returns.
The Internal Revenue Bureau IS con-
tinually confronted by the fact that
a number Of taxpayers seemingly
cannot escape the conviction that be-
cause their net earnings do not reach
the amount which they are allowed
by personal exemptions as heads OF
families, it is unnecessary for them
to file a return. This is entirely err
rone4us. Any single person, widow
or widower, whose net income Is
$1,000 or more, must file a return, re-
CARELESS of what his exemptions may
be. Any individual whose gross in
come, as defined by the regulations
is in excess of $4,000 must also file
a return.
INFORMATION FORMS 1899
There is a further reason why In
dividuals who are not certain as tx
their income and as to their liability
should file a return if in doubt. Ev
| cry corporation, partnership or indi
! vidual employing help is requires
| under the law to furnish to the Com
| missioner a form known as numbe
| 1899. giving a list of their employee
| and the salaries paid to them. 1t
| often found that these concerns nav
| failed to enumerate all OF their Ell
! ployees, and it then becomes neccs
/ ssry to call en- the individuals ar
make al investigation as to T..
: amount Of salary received, or tn
Is reason for failing to file return
= Very often these concerns neglect t
d give the information as to whethe
r or not their employees are single
A. married. A check-up is made agaln'
re this list by the Bureau when the II
IN turns fer the current year have bee
re fled. Tn that case, a married ma
h. those salary was ,ess than S2,3C
IS would be called upon to furnish Il
b. needed information, to straighten Il
matter out. Thus the individual
put to an unnecessary loss of tin
- and expense in appearing before Il
Collector, or Deputy Collector,
answer these questions. This caus
irritation and friction, for which t
! taxpayer can not well be blamed.
Z an illustration: in the year 1928, Ov
4 two thousand individuals in Montal
failed to file returns and according
were subjected to penalties and t
q fling Of offers in compromise, II
could have been avoided, had the
taxpayers filed returns.
FILE A RETURN
The reasons set forth above I'M
cate to some extent why 1t is be
when a taxpayer is not sure OF
position, to file return. 1t costs t
taxpayer nothing; and year or t,
later may save him cOnsideraI
trouble, and more than likely, sol
expense. To avoid filing a retu
8 does not mean that taxpayer c
avoid being checked up, or called
for information lated. "FILE
RETURN-AND DO 1T NOW!"