Show Tax Will the IRS automatically give a taxpayer an extension of time to file his income tax A. A taxpayer can now get an automatic two-month extension to file his Form 1040 by properly completing Form and sending it to the IRS along with payment of tax that is estimated to be owed for the This extension is available for tax years ending on or after December 1971 and thus can be taken during the current filing The Form must be filed with the Service Center on or before the due date of the Form If the tentative lax when submitting Form is less than the final tax-shown on the Form interest at the rate of 6 percent a year from the original due date will apply on the of the The late payment penally will also apply unless there is reasonable cause shown for the Reasonable cause will he presumed if the balance due on the Form 1040 is no more than 10 percent of the total lax for the year and this balance is paid with the Form How did the new tax law change the personal exemption and standard deduction on this year's tax A. The Revenue Act of 1972 increased the personal exemption to for tax year The new law did not change the standard deduction which the Tax Reform Act of had increased to 13 percent of adjusted gross or whichever is Where cau I get some information about the tax treatment of a Domestic International Sales Corporation-established by the new tax A. A new Handbook for can be obtained for 40 cents from the Superintendent of U.S. Government Printing D. C. You may also call your IRS office for information on Are alimony payments A. if you deductions on your The person who receives alimony must include these payments in The reverse is true for child support These payments are not deductible to one who t pays and are nontaxable lo the I made a political contribution last May I de-deduct it on my 1971 A. Under the Revenue Act of only political contributions made after December 1971 can be deducted up to for a joint if you itemize Instead of a the taxpayer can take a credit on his 1972 return against his tax for 50 percent of the contribution up to for a joint If you plan lo make any political contributions this be sure lo keep good records to justify a deduction or credit on your 1972 I understand that the IRS has an official income guide for Where can I get a A. A copy of Publication Federal Income can he purchased for 75 cents at IRS district |