The Waterbury Democrat., 1944-04-05

to date with their tax payments for
1914. Since the amount of tax due
for the year cannot be known at
this time, the law provides that the
current quarterly payments shall be
made on the basis of an estimate,
and after the close Of the year the
taxpayer can then determine his
tax liability on the basis of actual
figures as shown in his regular in
come tax return for the year.
When the declaration is filed,
showing the taxpayers estimate of
his probable tax for 1914, it should
be accompanied by the first quar-
terly installment payment of esti-
mated tax, and the remainder of the
tax should be paid on or before June
Is, September IS, and December Is.
Thus the current payment of esti-
mated tax for 1914 to be made on
or before April IS is entirely sep
arate and distinct from the pay
ment, If any, made on or before
March Is, 1914 on account of the
1914 tax.
In making an estimate of probable
1914 tax this early in the year, tax
payers may feel that they are UNI
able to make this accurate estimate
because of the unforeseen changes
that may occur later in the year.
It Is not required, however, that the
estimate be absolutely accurate, for
the law permits an estimate to be
made without penalty for underes-
timating (a) if it is at least 80 per
cent correct Cor sc 2-3 per cent cor
rect in the case Of farmers, or (b)
if it Is computed on last years in
come at this years rates and exemp-
lions, and is paid on time in quar-
terly installments or Is paid ahead
of time( or, in the case of farmers,
is paid on or before the 18th day of
the last month Of the taxable year,.
In estimating his tax, each tax
payer should consider the facts and
circumstances existing at the time
prescribed for filing the declaration.
For instance, a person employed at
that time at given wage or salary
should presume for the purposes OF
the declaration. in the absence of
facts indicating the contrary. that
his pay will continue unchanged to
the end of the year. If he owns
shares Of stock on which he has
received dividends regularly for sew
eral years, he should, in the absence
of information indicating a change
in the dividend policy, include the
prospective dividends for the year
as well as the dividends already re-
ceived in that year. A taxpayer
who is engaged in business on his
own account should estimate his
probable gross income, deductions
and credits according to the best
information available to him con-
corning his trade, business or pro-
fession. In any event, an amended
declaration, marked Amended" can
be filed later, on or before any in
stallment date. with the collector
with whom the original declaration
was filed, and the remaining install
ments will be correSpondingly in
creased or decreased.
While the primary purpose Of the
declaration Is to make it possible
for taxpayers to pay their current
taxes by installments, some individ-
uals may prefer to pay the entire
amount Of the estimate in one pay
ment. This may be done at the
time when the first installment is
due, but an amended declaration
can still be filed later in the year
If changes occur in income or fam
lily status.
The declarations and payments
should be taken or mailed to the
Collector Of Internal Revenue in
the district in which the taxpayer
expects to file his regular income
tax return for the year.
Article 2 Of series will appear in
tomorrow evenings Democrat.