The Carbon County news. [volume] (Red Lodge, Mont.) 1924-1931, 1925-02-05
Extensions of Time.

amounting to $4,000 or over to any
one individual, partnership, or cor
poration during the calendar year OF
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 obtained upon
request from the Collector, Stock Divi-
dends and Liquidating Dividends need
not be reported.
Earned Income
The new Act provides for 25fe
reduction in the tax due on earned in-
comes up to 100000, and that all
incomes of less than $b,00000 shall be
considered earned. Therefore, If your
net income is less than S5,000.OO, you
should first compute the tax at 2pd
and then reduce the tax by 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 adj
ministrative provisions of the law, did
not In any manner relieve the liabii-
ity Of taxpayers to file returns. The
Internal Revenue Bureau Is contin-
ually confronted by the fact that a
number Of taxpayers seemingly can
not escape the conviction that because
their net earnings do not reach the
amount which they are allowed by
personal exemptions as heads of fam
lilies, it is unnecessary for them to file
a return. This is entirely erroneous
Any single person, widow or widower'
whose net income is $1,000 or more,
must file a return, regardless Of what
his or her exemption may be. Any in
dividual who is married and whose net
income is $500 or more, must file q
return, regardless Of what his exemp-
tions may be. Any individual whose
gross income, as defined by the regula-
tions, is in excess Of $4,000 must also
file return.
Information Forms 1893.
There Is a further reason why in
dividuaIs who are not certain as TO
their income and as to their liability,
should file return if in doubt. Every
corporation, partnership, or individual
employing help is required under the
law to furnish to the Commissioner a
form known as number 1899, giving
a list Of their employees and the salr
aries paid to them. 1t is often found
that these concerns have failed to
onumerate all of their employees
and it then becomes necessary to call
on the individuals and make an in
vestigation as to the amount Of salary
received, or the reason for falling to
file return. Very often these con-
Germs neglect to give the information
as to whether or not their employees
are single or married. A check-up liz
made against this list by the Bureau
when the returns for the current year
have been filed In that case mar
ried man whose salary was less than
$500 would be called upon 70 furnish
the needed information, to straighten
The matter out. Thus the individual
is put to an unnecessary loss of time
and expense In appearing before the
Collector or Deputy Collector, to ans
wer these questions. This causes irrita-
ton and friction, for which the tax
payer can not well be blamed. AS an
illustration: in the year 1923, over two
thousand individuals in Montana failed
to file returns, and accordingly were
subjected to penalties and the filing
Of offers in compromise. This could
have been avoided had these taxpayers
filed returns.
File Return
The reasons set forth above indicate
to some extent why it is best, when q
taxpayer is not sure Of his position, 70
Gle return. 1t costs the taxpayer
nothing; and year or two later may
save him considerable trouble, and,
more than likely, some expense. 10
avoid fling return does not mean
that a taxpayer can avoid beng
checked up, or called on for informa-
ton later. "FILE A RETURN-AND
DO 1T NOWw