Idaho County free press. [volume] (Grangeville, Idaho Territory) 1886-current, 1921-12-22
Changes in u. S.
Internal Reuenue
Law Set Forth
MARRIED PERSONS GET PERSON
AL EXEMPTION OF
$500

The following statement has been
issued from the office of Evan Evans,
U. S. collector of internal revenue, at
Boise:
Enactment of new revenue legisla-
ton has brought to the offices of col
lectors of internal revenue flood OF
inquiries regarding various provisions
The revenue act of 1921 became eff
fective Nov. 23, 1921, unless other
wise provided for.
To avoid error in the preparation of
their returns and later difficulties with
the bureau of internal revenue, tax
payers are advised to carefully note
the changes and when they became eff
fective.
The excess profits tax is repealed as
of Jan. /, 1922. The rates for 1921 are
unchanged.
The surtax rates for the calendar
year 1921 are unchanged, and range
from percent on the amount of net
income between $4,000 and $4,000 to
65 percent on the amount of net in
come in excess of 81 100000 For the
calendar year 1929. the surtax rate,
percent on the net income between
$4,000 and $4,000 to so percent on the
amount bv which the net income ex-
ceeds $4,000.
EXEMPTION OF $500
The exemption allowed for depend
ant is increased from 5000 to $500.
Married persons living with husband
or wife and heads of families are al
lowed a personal exemption of $500
instead of $1,000, unless the net in
come 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 $4,000 to $4,000 operate
to increase the tax which would be
payable if the exemption were $25oo
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 $500
exemption.
Single persons, and married persons
not living with husband or wife, are
allowed an exemption of $1,000. Nom
resident aliens are allowed single
personal exemption of $1,000. Persons
having gross incomes for 1921 of $4,000
or more are required to make return,
regardless of the amount of net income.
Provision is made for the repeal as
of Jan. /, 1921, of the tax on stock
holders of a personal service corpor-
alton as such. After that date such
corporations are to be taxed In the
same manner as other corporations.
TAX ON CORPORATIONS
The income tax on corporations for
the calendar year 1922 and thereafter
is increased from 10 to 121a percent.
The $4,000 exemption heretofore allowed
corporations is to be granted only to
those corporations whose net income is
| 1000 or less.
Many persons are under the impress
sion that the tax on ice cream, SOFT
drinks and the like, monthly returns
of which are required, have been re-
pealed with the enactment of the new
act. These taxes remain in force I'M
til the end of the calendar year 1921.
No change is made in the tax on adj
missions, except that after Jan. l,
| 1922. there will be no tax where adj
mission is less than 10 cents. Efec-
tive Jan. /, 1922, the following taxes
are also Abolished: On musical instru-
| ments. sporting goods, chewing gum,
portable electric fans, thermos bottles,
| fur articles, pleasure boats and
pleasure canoes, unless sold Tor more
than 800, toilet articles, medicines
and numerous articles of apparel.
On and after Jan. 1, 1922, the tax
on various works of art is reduced fron'
10 percent to percent, the tax on
candy from percent to percent, ana
the tax on carpets, rugs, trunks, va
Uses, purses, fans, and the like, from
| 10 percent of sales price In excess OF
specified amounts to 5 percent OF sales
price in excess of specified amounts.
The tax on parcel post packages is
eliminated effective Jan. l, 1877.
NOT HARAss TAXPAYERS
The new act provides that no tax.
payer shall be subject to unnecessary
! examinations or Investigations, and
only one inspection of his books OF
accounts shall be made for each tax
| able year unless the taxpayer requests
| otherwise. or the commissioner notl
fies the taxpayer in writing that an
| additional inspection is necessary.
The period for fling returns on the
calendar year basis is from January
TO March Is, 1922. This year, as
last. the tax may be paid in full al
the time of fling the return or IN
! four installments, due on or before
March Is, June Is, September Is and
December Is.