Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1921-12-15
THOSE NEW INCOME RULES
Just What the Taxpayer Win Have
to Pay- Hereafter

The Following SIdteuehI 10 AoouSN
by Collector of Internal Revenue II.
H. Motter, Wichita, District OF
Kansas:
enactment of new revenue legis-
lation has brought to the offices OF
Collectors of Internal Revenue HOOD
of inquiries regarding various provls'
ions. The Revenue Act OF 1921 be-
came effective November %, 1871,
unless otherwise provided for
ITO avoid error in the preparation
of their returns and later difficulties
with the Bureau of Internal Revenue,
taxpayers are advised to carefully
note the changes and when they be-
come effective.
THE excess profits tax is repealed
as of January 1, 1922. The rates
for 1921 are unchanged.
THE surtax rates for the calendar
wear 1921 are unchanged, and range
from / per cent on the amount OF net
income between $4,000 and $4,000
to IS per cent on the amount OF net
income in excess of $1,OO0,OOO. For
the calendar year 1922 the surtax
rates range from l per cent on the
amount of net income between st, OOO
and $4,000 to so per cent on the
amount by which the net income ex-
ceeds 100000.
The exemption allowed for de-
pendent is increased from $500 to
$500. Married persons living with
husband or wife and heads Of families
are allowed a personal exemption OF
$1,000 instead of $4,000 unless the
net income is in excess OF $4,000, In
which case the personal exemption is
only $4,000. The act provides that
in no case shall the reduction of the
personal exemption from $1,000 to
$1,000 operate to increase the tax
which would be payable If the ex-
emption We're $4,000 by more than
the amount of the net income in ex-
cess Of $4,000. This is to overcome
the disparity in the case Of two tax
payers, one Of whom is just within
the lower $1,000 exemption and the
other Just within the higher $2,5OO
exemption.
Single persons, and married per-
sons not living with husband or wife,
are allowed an exemption OF $1,OOo
Non resident aliens are allowed a
single personal exemption Of. $1,OOO
Persons having gross incomes for
1921 Of $4,000 or over are required
to make return, regadless Of the
amount of net income.
provision is made for the repeal
as of January 1, 1922 Of the tax on
stockholders of personal service cor
poratiOn as such. After that date
such corporations are to be taxed in
the same manner as other corpora
tons.
THE income tax on corporations
for the calendar year 1922 and there
after is increased from 10 to 12h pei
cent. The $4,000 exemption hereto
fore allowed corporations to bt
granted only to those corporations
whose net income is $4,000 or less
Many persons are under the i'm
preston that the taxes on ice cream
soft drinks, ETC., monthly returns OF
which are required, have been re-
pealed with the enactment Of the
new act. These taxes remain In
force until the end Of the calendar
year 1921.
mo change is made In the tax Oh
admissions, except that after Janu-
lary /, 1922 there will no tax where
admission is 10 cents or less. Efec.
tive January 1, 1922 the following
taxes are also abolished: on musical
instruments, sporting goods, chewing
gum, portable electric fans, thermos
bottles, fur articles, pleasure boats
and pleasure canoes, (unless sold FOL
more than 5000, toilet articles, medi-
cines and numerous articles OF APP
parel.
ION and after January /, 1922 the
tax on various works Of art Is reduced
from 10 per cent to per cent, the
tax on candy from per cent to
per cent and the tax on carpets, rugs
trunks, valises, purses, fans, etc.
from 10 per cent Of sales price In ex-
cess of specified amount to 8 per cent
Of sales price in excess Of specified
amounts.
THE tax on parcel post packages
Is eliminated effective January i,
1922.
1.-THE new act provides that no tax
payer shall be subjected to unneces-
sary examinations or Investigations,
and only one inspection of his books
OF accounts shall be made for each
taxable year unless the taxpayer re-
quests otherwise, or the commission
er notifies the taxpayer in writing
that an additional inspection Is nee
essary.
''The period for fling returns on