Monday, February 6, 1958
nuirunu UMUuflj mail Tnusuxsti o& &n
Revenue Service
No Major Changes in
Law Since Last Year
Offers
elpful Advice for Filing Incdml Tax Returns
(Editor's Note: This is the first in a
rriei of five dispatches prepared by
assell C. Harrington, commissioner of
internal revenue, to give taxpayers
some ..helpful ..advice., in .preparing
their returns. This dispatch lays-down
some of the ground rules under tne
lederal income tax law.)
By RUSSELL C. HARRINGTON
Commissioner Of Internal
Revenue
Written For United Press
Washington r- U.R) Now
In fact, the sooner the better-
is the time for U.S. citizens and
residents to file their 1955 fed
eral income tax returns.
There, have been no major
changes in the law since last
year so it will probably be most
helpful to begin by suessmg cer
tain basic points.
The Internal Revenue Service
has compiled a list of questions
which gave taxpayers the most
trouble last year after Congress
revamped the internal revenue
code.
To start with, the regular
filing deadline for individual
taxpayers is midnight, April 15,
the same as last year, but since
that date falls on Sunday this
year, you get an extra 24 hours
to file.
The question of "When do I
get my refund? can best be
answered by saying that you'll
get it just as soon as we can
check your return.
The best advice, if you're in
a hurry for your refund, is to
file your return early. With
more than 60,000,000 returns
to process, the later you file
the longer it will take us to get
around to yours. We handle
them on a first come, first serv
ed basis.
The second basic point is who
must file. That, too, is unchanged
and includes, in general, "citizens
and residents of the United
States, under 65 years of age
and with a gross income of at
least $600. Individuals 65 or
over must file if their gross in
come is $1,200 or more. For
most persons, paid either wages
'or salaries, gross income is the
same as the total of their wages
or salaries.
Musi File for Refund
It's always worth repeating
this: Even if you did not earn
$600 last year it's in your in
terest to file a return if during
the year" some -income tax was
withheld. You may be eligible
for a refund, and the only way
you can get it is by filing a re
turn! .. Due to certain trends like
greater coverage by hospitaliza
tion plans and more people own
ing stocks and bonds special
provisions of the law require
attention. I will cover those
later.
Also, certain events which
happen' each year affect the in
come tax liability of many indi
viduals. For example, of vital
importance to: thousands of peo
ple this year will be the deduc
tion for losses resulting from
the hurricanes and floods which
' ravaged parts of our country
during 1955.
It must be remembered that
on personal, or non-business
property, these casualty loss de
ductions are measured by the
. difference between the fair mar
ket value of the property before
it was damaged and the value
immediately afterward. ' You
should also keep in mind that the
deductible loss is limited to the
cost or other adjusted basis of
the property, and any compen
sation received, such as insur-
When filing on form 1040, you that you still owe some tax, you Revenue Service." Do not send year should save us all a lot of
also shouia mail your return should attach your check ..or casn. mso, be sure to attach your time. You are now permitted,
to your district director. How- money order for the balance form "W-2s" if you have any. if yu choose, to "found off" the
ever, if your calculations show due, payable, to the "Internal One change -we made this amounts eritered on your return
or accompanying schedules.
This means that, you may elim
inate any amount of less' than
50 cents and increase any; am
ount between 50 and 99 cents
to the next highest dollar.
(Tuesday: Whether to file a
separate : or joint return.)
r
Decline Seen in Blind
Premature Babies
Tillamook Retrolental fibro
plasia, the tongue-twisting eye
disease that not long ago blind
ed a high percentage' of prema
ture babies,, is continuing to de
cline in Oregon.
Figures released last week by
the children's eye clinic at the
University of Oregon medical
school show only four "preem
ies" with retrolental fibroplasia
in 1955 and three of these
cases were mild ones.
About two years ago research
ers pinned the cause of the dis
ease on too much oxygen being
given to premature babies in in
cubators. The children's eye clin
ic was among the first to ad
vance this solution. '
Dr. Kenneth Swan, head of
the clinic and the school's eye
department, said more accurate
control of oxygen has reduced
the disease in Oregon, but he
warned that the disease has not
been eleminated entirely.
DISCRIMINATING DRINKERS
Shrewsbury, N.J. (U.R) Dis
criminating thieves raided a
supermarket in nearby Shrews
bury township and stole 100
bottles of scotch, brandy and
bourbon, 15 boxes of cigars and
14 cartons of cigarettes. "We
had a similar job here about
three months ago," police said.
"They took only the best kind of
liquor."
Use Mail Tribune Want Ads
ance coverage payments, must
be subtracted from the amount
to be claimed. .
Because so many persons suf
fered ' storm damage to their
homes and other personal prop
erty last year, the Internal Rev
enue Service has prepared a
booklet entitled "How the Fed
eral Tax Applies to Losses From
Hurricanes, Floods and Other
Disasters." You can obtain a
copy from your district director
and should find it very helpful.
Just ask him for "Publication
No. 155."
Proof of Loss
I also want to call your atten
tion to a provision of the law
which permits you, if your de
ductible loss exceeded your in
come for 1955, to claim a "quick"
refund of part, or all, of the :
income taxes you paid for 1953
and 1954. You will need to have
valid, proof of owner-ship and
evidence pictures will help j
of the loss sustained. A spe-!
cial form 1045 is available
at your district director's office
to make this claim. Form 1045
must be filed on or after the
date of filing - your return for
1955, but not later than Dec.
31," 1956. ,1 have issued orders
that these applications are to be
handled as fast as possible.
This so-called "carry-back"
provision, as mentioned before,
is confined to actual loss and
not what it may cost you to re
build or repair.
, The tremendous movement of ,
our population from one place
to another has brought an in
crease in the number of taxpay- j
ers who sell their homes and
buy another.
If you sold your home during
1955 for more than you origin
ally put into it as your initial
cost, plus the cost of any im
provements, the difference is not
taxable if you bought another
residence within a year which
cost as much, or more, than you
realized on the sale.
However, if you buy another
home which costs less, you must
pay tax on part, or all, of your
profit. This tax may be at a
lower - rate, however, if you
owned the home more than six
months. If you sold your home
and built a new one the time
limit is extended to 18 months.
If you did neither and your sales
price exceeded the original cost,
you must declare the excess and
pay the tax.
Forms' To Be Used '
One further general question
should probably be answered be
fore turning, in subsequent in
stallments, to some of the more
detailed problems: That is which
of internal revenue's personal
income tax forms should be used.
This is one area where we
have changed things a little.
There are now just two basic
forms the 1040 and the 1040A
and we no longer use the term
"long" and "short" in regard to
form 1040. You simply use as
much or little of it as necessary
The 1040A is a check-size card
which we can process in high
speed accounting machines. It is
simple and brief.
Almost half the taxpayers will
use this form. Speif ically, it is
designed for those whose : in
come last year was less than
$5000 and was in the form of
wages or salaries from which
income tax was withheld, or
consisted entirely of such wages
and not more than $100 of other
income, such as pay for a part
time job, interest on which no
tax was withheld, or dividends
etc. A husband . and wife earn
ing less than $5,000, including
not more than $100 - in other
forms of income of -the type men
tioned, may also use this form
to' file a joint return. . ,
The form 1040. must be used
if your gross income was $5,000
or more, or if you had more than
$100 in other income, or if you
wish to itemize your deductions
because they exceed the stand
ard 10 per cent of adjusted gross
income. On the 1040A, you auto
matically get a 10 per cent de
duction to cover medical ex
penses, contributions, ..interest
and other deductible items. You
also get the same 10 per cent
if you use the first page of form
1040, and take your tax from
the tax table.
If you can, it's a great time
saver for you and us to
use the card form 1040A. ,
Determine Own Tax
If you use form 1040 you have
to determine your own tax. And
if your income" comes from sev
eral sources, it must be listed
on the other pages of the form
and your tax computed on the
rate tables which are provided.
When filing card form 1040A,
send it to your district director
not to me as so many thous
ands have already done. He
will send you a bill or a refund.
Do not send a check or cash. Be
sure to enclose the "W-2" form
which your employer will give
you showing your wages,' how
much was deducted for income
taxes, etc.
If You're Not Trading at the GROCETERIA You're Paying Too Much
(1B(1D(D
SIXTH AND GRAPE STREETS
OPEN 7 DAYS (Q)
A WEEK UNTIL j P.M.
r - &
sdTSiiijM
1 I
ADMIRAL
APPLIANCE
Drawing
' This
Saturday
9:30 A.M.
st' l jj
GLr0
2 Big Admiral
TV SETS
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4 Admiral
-'- ' CALENDAR
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THRFFY, SHOPPERS
ok wmm
Tickets freely given to all over 18 years of age.
You don't have to buy. r
First Drawing Feb. lHh - Second Drawing Feb. 25th
AT THE GROCETERIA!
M-D TISSUE
WHITE HOUSE COFFEE
FRANCO-AMERICAN
SPAGHETTI
15-oz.
Can
DEL MONTE
PINEAPPLE
JUICE
LESS RAISINS
Pound
46-oz. can a sD
Old Dutch Cleanser (2 of deal) ... ... ... 2 cans 210
Duncan Mines French Dressing .... , 8 oz. bottle 39
Early California Stuffed Olives ............. 3 yz oz. bottle 25
Fels Naptha Soap . . : . . . 3 bars 27
Gehhardt9s Chili Beans . .. ........... No. 300 can, 2 for 35
Ore-Ida Frozen Potato Patties . . 12 oz. pkg.,19
Puss 'N Boots Cat Food . . . . . . . No. 1 can, 2 for 27
Trend Detergent ......... . ........ . . . . 2'pkgs. 39
Purex Beads O' Bleach ... . . 18 oz. pkg. 39
Kotex Sanitary Napkins ........ .... pkg. of 12 39 2 for 77
Wiliapoint Oyster Stew . . . . ...... 10 oz. can 29
MJB Brown Rice V. . . . . . 28 oz. pkg. 33
MJBLong Grain Rice ... ....... 28 oz. pk. 39
No. 1
Hands
POUNDS
19 79'
ONE SHOPPING STOP
FOR EVERYTHING
Im9
Medium Size
Pitted Olives v .
; No. 1 Can
383 -69'
v -f '
89
Pounds
FLUFFO
Coupon on each can
worth 20c on next purchase!
At The Groceteria Fountain
ALL TMiS
COLUMBIA RIVER SMELT
.Choice of French Fries or Mashed Potatoes,
Vegetable, Bread and Butter, Coffee, Tea or Milk
A Complete T I I n
Delicious I Jt CC
Dinner OjrO J
' ' - i
FOR YOUR
VALENTINE
DAY PARTY
Sweetheart
. -
take
From Our Own Bakery
HEART SHAPED
WITH WHITE ICING
DECORATED WITH RED CANDY HEARTS
HEART SHAPED
FULLY DECORATED SWEETHEART CAKE
A BEAUTIFUL ARTISTIC CREATION
$50
1 . .
Please Order Early
For Delivery On
Valentine's Day
YOUNG; TENDER - FRESH NOT FROZEN - SMALL SIZES
;W OR TE .DB II IB
BOIL BAKE OR BARBECUE - THEY ARE ALWAYS TOPS!