Income Tax Refunds on Community Basis

By John G. Mclntosh, C. P. A.

The Treasury Department's recent decision that taxpayers in Calif6rnia may make returns of income on the iommunity basis that is by dividing community income between husband and wife in separate returns, entitles taxpayers to refund of overpayments for past years be-ginniig with the taxable year nineteen eighteen_, and such 6verpa ments are applicable to unpaid installments of income tax due this year.

Assuming that all of the income was community income and that there were no dependents, refunds for the respective vears will be claimable in the amounts shorvn below' If there were dependents the amounts will be increased slightly.

The-following procedure will be in order where only the first installment of the nineteen twenty-three tax has been paid.

' One: Prepare returns on the community basis, that is a return for the wife and an amencled rettlrn for tne nusband for each of the years nineteen eighteen to nineteen twenty-three inclusive.

Two: Prepare a claim for abatement on form eight forty-three for the difference between the amended tax for husband and wife for nineteen twqnty-three and the tax shown by the original return for that year.

Three: Prepare a claim for credit on form eight fortythree applying the overpayments for nineteen eighteen to nineteen twenty-two against the unpaid balance of the amended tax for nineteen twenty-three.

Four: Prepare a claim for refund on form eight fortythree for the amount, if any, by which the overpayments cxceed the ciaim for credit.

Five: \Vith tlre claims submit a letter to the collector, signed by husband and wife, showing, for each year, the amount of taxes paid, the correct tax and the overpaymen't, and agreeing to tt're adjustment of the taxes as set {orth in ihe claims.

In vierv of the expectation that Congress will shortly

(Continued on Page 28)

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Sales Helps for You

There is more hardwood business in your territory than you are getting, and it is lucrative business too. Let us help you secure this added profit which you are now losing. Write us for samples of hardwoodlumber for finish, panels and flooring to distribute among your prospective customers. We also have attractive booklets on Hardwood Flooring which will gladly be sent you on request. Tahe these selling aids wefurnish you free of charge and let them make actual sales for you.

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Sugar Pine

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(Continued from Page 26) enact a law reducing the tax for nineteen twenty-three by twenty-five per cent, it might be advisable to- defer th-e above procedure until late in May, the second installment being due June fifteenth. However, if there was an overpayment for the year nineteen eighteen, it would be advisable to filea claim for refund for that year by April

D, L924, although a recent amendment apparently extends the time for claims for that vear.

It is probable that claims ior I9I7 are now outlawed in cases where waivers were not filed within the time limit.

Investigation is frequenty necessary to determine what constitutes community income in a given case. Occasionally what appears to be separate income is in reality community income. Therefore the assembling of the hgures necessary for amended returns should not be delayed.

Reduction in Taxes

PHILIP R. THAYER RETURNS FROM HONOLULU

Philip R. Thayer, manager of the Marin Lumber & Sup- ply Co., San Francisco, has returned fromafour weeks business and pleasure trip to Honolulu. Mr. Thayer reports.that the tourist trade to the Island this year has been very heavy and that conditions there are prosperous. He was accompanied by Mrs. Jhayer on the trip.

Howard Gunton Looks Over Conditions In Sacramento Valley

Howard Gunton, of the Santa Fe Lumber Co., San Francisco, was a recent visitor to Sacramento, Stockton, and other Sacramento Valley points where h,e called on the lumber trade and made a survey of business conditions in that territory.

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