Free trader-journal and Ottawa fair dealer. (Ottawa, Ill.) 1920-1927, 1921-12-19
INTERNAL REVENUE
COLLECTORS GWEN
DATA ON TAX LAWS
INCREASE INCOME EXEMPTIONS
FROM $4,000 TO s2,5oo-$t 900
LIMIT REMAINS FOR uNMAR.
RlED PERSONS.

Many changes have been wrought
to the 1922 income tax law, accord.
ing to information sent to the local
internal revenue Office. Principal a.
mong the alterations In the old meas
ure IL an increase OF the exemption
on incomes from $4,000 to $1,000 and
exemptions for dependents from 5000
to $500.
Provisions of the law are:
Enactment of new revenue legis-
lation has brought to the offices of
collector of internal revenue food OF
inquiries regarding various provisions.
The Revenue Act of 1921 became eff
fective November %, 1921, 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.
1.-THE excess profits tax Is repealed
as of January /, 1922. The rates for
1921 are unchanged.
1.-THE surtax rates for the calendar
from | per cent on the amount of net
income between $4,000 and $4,000 to
Go per cent on the amount OF net in.
come in excess of $l000,000 For the
calendar year 1922 the surtaX rates
range from l per cent on the amount
of net income between $4,000 and
$4,000 to 80 per cent on the amount
by which the net income exceeds
$2000,000.
Must Live With Wife.
1.-THE exemption allowed for a de.
pendent is increased from 5000 to
$500 Married persons living with hus-
band or wife and heads of families
are allowed a personal exemption of
$4,000 (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 $500 to
$1,000 operate to increase the tax
which would be payable ii the eXemp
tin were $500 by more than the
amount of the net income in excess
of $4,000. This Is TO overcome the
disparity In the case Of two taxpayers
one of whom is just within the lower
$4,000 exemption and the other Just
within the higher $4,000 exemption
Single persons and married per
sons not living with husband or wife
are allowed an exemption of $1,000
Nonresident aliens are allowed n sin
gle personal exemption of $1,000. |
Persons having gross incomes for
1921 of $4,000 or over are required
lrn q ra roo rfiIncu nf bA
amount of net income.
provision is made for the repeal
as of January /. 1922 of the tax on
stockholders of a personal service
corporation as such, After that date
such corporations are to be taxed in !
the same manner as other corpora
tions.
"The income tax on corporations
for the calendar year 1922 and there
after is increased from 10 to 12la
per cent. The $4,000 exemption here
tofore allowed corporations is to be
granted only to those corporations
whse net income is $4,000 or less
"Many persons are under the inn
preston that the taxes on ice cream
soft drinks, etc, monthly returns OF
whie hare required, have been repeal
ed with the enactment of te new act
These taxes remain in force until the
end of the calendar year 1921.
'No change is made in the tax on
admissions except that after January
/. 1922 there will be no tax where
admission is 10 cents or less Effec
tive January |, 1922 the following
taxes are also abolished: on musical
instruments, sporting goods, chewing
gum. portable electric fans, thermosI
bottles, fur articles, pleasure boats
and pleasure canoes, unless sold for
more than 5000 toilet articles, medi-
cines and numerous articles OF APP
parel.
Cut Taxes on Carpets, Etc.
con and after January ], 1922 the
tax on various works of art is re-
duced from 10 per cent to 8 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 prices in
excess of specified amounts to 5 per
cent of sales price in excess of speci-
fed amounts.
'sThe tax on parcel post packages
is eliminated effective Jan. / 1922
he new dCI plbNlhCN thdI nv ttA
payer shall be subjected to unneces-
sary examinations or Investigations
and only one inspection Of his books
or accounts shall be made for each
taxable year unless the taxpayer re-
quests otherwise or the commissioner
notife sthe taxpayer in writing that
an additional inspection is necessary.
"The period for filing returns on
the calendar year basis is from Jan
uary / to March Is, 1922. This year,
as last the tax may be paid in full
at the time of filing the return or
in four equal installments, due on or
before March Is, June Is, September
Is and December Is.
"'Copies of the revenue act may be
had by application to the Aurora of
fee, the Chicago Office of John c.
Cannon, internal revenue collector for
the First district of Illinois"