Evening star., 1926-03-14
INCOME TAX DELAY
WILL COST HEAVILY
Returns Must Be In Tomor.
row Night or Penalties
viii! Be Assessed.


Sharp penalties will be levied
| unless their return and payment OF
at least ofie-quarter OF the tax Is
made before tomorrow midnight.
| This was announced last night by
Galen l.. TAFT. collector of Internal
revenue, with headquarters at Balti-
more, who has charge Of the district
! including this city.
ITO avoid penalty" said Mr.. TAFT s
| statement, the return accompanied
| by at least one-quarter or the tax
| due-or estimated tax due in the case
of net incomes In excess OF SSVoo--
must be in the Office of the collector
of internal revenue. at Baltimore. or
deputy collector Of internal revenue,
H. c. Powell, at 1922 Pennsylvania
| avenue at Washington. by that hour. y
Large Force On Hand.
Deputy Collector Powell said he had
on duty between so and 90 experts
stationed at the office of 1922 Penn
| sylvania avenue and at banks and De
| partment stores throughout the city.
| These will be ready to serve the
| throng which is expected to rush TO
| get returns in by time.
| Services of revenue officers who are
aiding taxpayers in the preparation OF
returns will be available tomorrow at
| the following banks and department
stores: Munsey Trust Co., Merchants
Bank & Trust Co., Union Trust Co,
Continental Trust Co., Columbia Ma
tional Bank. District National Bank,
Lincoln National Bank. Lincoln Ma
tional Bank Branch, Seventh and RI
Il1 nh l..
American National Bank, Woodward
& Lothrop's, Lansburgh Bros. the
Hecht Co. and at the Treasury Build
ing.
Further last minute instructions by
Collector TAFT to taxpayers include the
following:
I'm the case of individuals whose
net income for 1925 was $4,000 or less,
a. complete return is required on Form
,O4OA. The Commissioner of Internal
Revenue has granted to individuals
whose net income was in excess OF
| S., 900 and to corporations. until May
Is, 1926, to file a complete return.
However, tentative returns In sncn
cases are required on or oe1ore Marcn
TX. and must be accompanied oy at
Iaast one.fourth of the estimated
an,ount of tax due. Single persons
making $500 or less. and married
nersons making $500 or less are eX'
empt.
Estimates Explained.
"rf the estimated tax Is less than
sbo,yn to be due on the completed re-
.,,.,, the difference will bear interest
at the rate of 6 per cent until pald'
tentative returns should be mace on
the us,,al form-1040 for indivlduais
whose net income exceeded >o'ooo
and 1920 for domestic corporations, :,
nIainlv marked at the top ''TentatlVe,
contain a statement OF the eStiIha,eu
oYnount of tax believed to be due' anu
ba sworn to before a notary puoiic'
or other person authorized TO aornin
;eter an oath. No other data neeo oo
given. .oo..,;ye
"yVhen g. Taxpayer files a tentative
return and fails to f1'e a complete re
turn within the period or the eA'en ~
sion granted. the compete ~, ,4. ~,
when filed. Is subject to the a pena .'es %
r,rescrih@-i for delinquents. Copies OF
w. form, have been mailed taxpayers
h,,t failure to receive a form does
j not relieve a, taxnayer Of his ooliea-
,ion to file a return on time. copies
nav he obtained at the ONCE OF COL
iactors of internal revenue and prancn
offices. ., -,
.Eor failure to file a return on
| time the penalty is % per cent OF
the amount of the tax unless ia.er
re.urn is filed and 1t is Satisfactorily
shou,n TO the commissioner OF IN
tarnal revenue that such failure was
due to a reasonable cause and not
to willful neglect. If taxpayer ex,
ercisad ordinary business care and
prudence but nevertheless was unapie
to file a return within the time pre-
scribed. the delay was due to reason
able cause
Penalties Announced.
"ro,. willful failHre to make a re-
| turn the penalty is not more than
81 900, or Imprisonment for not more
than five years, or both, and. In addl
tion. 25 per cent of the amount of the
tax. For willfully making O. false OF
fraudulent return. the penalty Is moi
more than $4,000 or imprisonment
for not more than five years or botn
and. In addition. so per cent Of the
amount Of the tax. If there is a def
ciencv. there is added to the tax in
terest at the rate Of per cent a year
from the date prescribed for the pay
ment of the tax to the date the def
ciencv ia assessed. In addition there
Is added per cent Of the amount OF
the deT"iAncy If due to negligence
but without intent to defraud. II
uue to fraud. the amount added ir
| addition Is so per cent Of the def
cheney.
ITO insure against loss In delivery
payment of income tax. when mailed
or made at a branch office bv money
order or check, should be made to the
order of Collector of Internal Reve
nue., Baltimore, Md"