Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1921-12-16
PROVISIONS OF
THE INCOME TAX
lCOIIk1CTOR OF INTERNAL REVE-
NUE. GIVES EXPLANATIONS
OF REVENUE ACT


tiozs Of the Revenue Act of 1921 ap-
proved November %, 1921, is fur
nished by the Collector Of Internal
Revenue for the District of Minnesota.
S"ERactment Of new revenue legis-
lation has brought to the offices of
Collectors Of Internal Revenue a flood
of inquiries regarding various pro-
visions The Revenue Act of 1921 be-
came effective November 23, 1921
"unless otherwise provided for"
"To 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"The excess profits tax is repealed as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 /, 1922. The rates-for 1921
are unchanged.
F'The surtax rates for the calendar
year 1921 are unchanged, and range
from l per cent on the amount Of net
income between $4,000 and $4,000 to
65 per cent on the amount Of net in
come in excess of $l,000,000. For the
calendar year 1922, the surtax rate, l
per cent OH the amount of net income
between $4,000 and $4,000 to 80 per
cent on the amount by which the net
income exceeds $2O0,000.0o.
"The exemption allowed for de-
>andcnt is increased from 5000 to $4OO
Married persons living with husband
or wife and heads of families are al
lowed a personal exemption of $4,000
(instcad of $4,000 unless the net in
come is in excess Of $4,000, in which
case the personal exemption is only
$4,000. The act provides tat in no
case shall the reduction of the person
al exemption from $4,000 to $4,000
operate to increase the tax which
would be payable if the exemption
were $4,000 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 exemp'
ton and the other CO. 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 a
single persons's exemption of $1,000
Persons having gross income for 1921
Of $4,000 or over are required to make
a return, regardless Of the amount OF
net income.
sProvision is made for the repeal
as of January l, 1922, Of the tax on
stock holders Of a personal service cor
poratioa as such. After that date such
corporaticus are to be taxed in the
same manner as other CORPORATIONS.
ssThe income tax on corporations
for the calendar year 1922 and there
after Is increased from 10 to l2R pei
cent. The $4,000 exemption hereto
fore allowed corporations is to be
granted only to those corporations
whose net income is $4,000 or less.
'eMany persons are under the i'm
preston that the tax on ice cream
soft drinks, etc., monthly returns OF
which are required, have been repealed
with the enactment Of the new act
These taxes remain in force until the
end Of the calendar year 1921.
"Fo. change is made in the tax on
admissions, except that after January
l, 1922, there will be no tax where ad
mission is less than 10 cents. Effective
January l, 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 plea
sure canoes, unless sold for more thar
500, toilet articles, medicines anc
numerous articles of apparel. 70
HOn and after January /, 1929, the
tax on various works Of art is reduced
from 10 per cent to 5 per cent, the tax
on candy from 5 per cent to per cent
and tho tax on carpets, rugs, trunks
valises, purses, fans, etc., from 10 pei
cent Of sales price in excess Of speci
fed amounts to S per cent, of sales
price in excess of specified amounts.
"The tax on parcel post packages is
eliminated effective January, I, 1922
ffThe 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 tax.
able year unless the taxpayer requests
otherwise, or the Commissioner notifies
the taxpayer in writing that an addi.
tional inspection is necessary.
1'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 at the time
Of fling the return or in four eqtal in
stallments, due on T. or before March
Is, June Is, September Is and Decem.
ber IS. N
Copies Of the revenue act may be
had by application, to the Internal
Revenue Office