The Delta independent., 1921-12-16
,ENisEo RULES FOR MAKING
INCOME TAX REPORTS

OiiectorS OF internal revenue a Hood |
)f inquiries regarding various pro
Visions. The Revenue Act of 1921 be- |
: anne effective November %, 1921 'un-
ess otherwise provided for"
To avoid error in preparation of
heir returns and later difficulties with
he Bureau of Internal Revenue, tax
payers are advised to carefully note
he changes and when they become
effective.
The profits tax is repealed as of
January l, 1922. The rates for 1921
are unchanged.
The excess profits tax is repealed
as of January l, 1922. The rates for
1921 are unchanged.
The surtax rates for the calendar
year 1921 are unchanged, and range
from l per cent on the amour, of net
income between $4,000 and $4,000 to
IS per cent on the amount OIL net in
come in excess of $1,000, 900. Fer the
caiendar year 1922 the surtax rates
range from l per cent on the amount
of net income between $4,000 and
$4,000 to so per cent of the net in
come in excess of 100000.
pendent is increased from 5000 to
$500. Married persons living with
husband or wife and heads Of families
are allowed personal exemption of
$4,000 Cinstead 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 per-
sonal exemption from $4,000 to $1,000
operate to increase the tax which
would be payable IL the exemption
were $500 by more than the amount
of the net income in excess Of s., 1000.
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 s2,509 exemption.
Single persons, and married persons
not. living with husband or wife, are
allowed an exemption of $1,000. Non
resident aliens are allowed single
personal exemption Of $1,000 Per
sons having gross incomes for 1921
of 5000 or over are required TO make
return, regardless OF the amount OF
net income
Provision is made for the repeal as
January /, 1922, OF the tax on stock
holders Of a personal service corpora
tion as such After that date such
corporations are to be taxed in the
same manner as other corporations.
The income tax on corporations for
the calendar year 1922 and thereafter
1 is increased from 10 to 1919 per cent.
The $4,000 exemption heretofore al
| lowed corporations is to be granted
! only to those corporations whose net
income is $4,000 or less.
! Many persons are under the i'm
preston that the tax 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 un-
til the end of the calendar year 1921
! No change is made in the tax on
admissions. except that after January
II. 1922. there will be no tax where
admission is less than 10, cents. Ef-
fectiye January !, 1922. the following
taxes are to be abolished: On musi-
cal Instruments. sporting goods. chew
| ing gum, portable electric fans, ther-
mos bottles. fur articles, pleasure
/ boats and pleasure canoes, unless sold
| for more than 500. toilet articles.
medicines and numerous articles of
apparel
/ On and after January 1, 1922, the
\ tax on various works of art is re
duced from 10 per cent TO 5 per cent,
the tax on candy from per cent TO
I . sax s~ar 70
rugs trunks, valises, purses, fans, etc,
| from 10 per cent to sale price in ex-
cess of specified amounts to per
cent Of sales price in eSces of speci-
fed amounts.
The tax on parcel post packages is
eliminated. effective January I. 1922.
The next 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 commissioner
notifies the taxpayer in writing that
an additional inspection is necessary.
The period for fiIing returns on the
calendar year basis is from January l
TO Marcn 10, lS1I- MS year, as last,
the tax may be paid in full at the time
of fling the return or in four equal
installments. due on or before March
10. June IL. September Is and Decem-
Der IS.
Copies OF the revenue act may be
had by application 20 the collectors
office,
Miss Pepticuff Home.