The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-12-26

within the lower $4,000 exemption,
the other being just within the higher
$4,000 exemption the act provides that
the reduction of the personal exemp-
ton from $4,000 to $4,000 shall not
operate to increase the tax. which
would be payable if the exemption
were 81, 500, by more than the net in
come in excess of $4,000. For ex-
ample. married man or head of a fam
lily has a net income for 1921 of S5,-
O10. Assuming that he has no de-
pendants, his tax if he were allowed
only the $4,000 exemption, would be
s12O.40. Under the benefits of the
above provision, however, his tax is
$40 4 per cent on the amount of his
taxable income of $500, or 500,
plus the amount by which his net in
come exceeds $4,000
Surtax Rates.
Many inquiries are received relative
to the surtaX rates.
Taxpayers in the preparation of
their returns should be careful to note
that the surtax rates for the calendar
year 1921 remain unchanged. The
surtaX rates on incomes for 1921 range
from l per cent on the amount of net
income between $1,000 and $4,000 to
65 per cent on the amount of net in
come in excess of S1,OOO,0O0. For the
calendar year 1922 and each calendar
year thereafter, the surtax ranges
from 1 per cent on the amount of net
income between $4,000 and $4,000
to SO per cent by which the amount
of net income exceeds 100000.
Returns Required.
Returns are required of every single
person whose net income for 1921 was
/ $1,000 or over, every married person
not living with husband or wife whose
net income was $1,000, and every mar
ried person living with husband or
wife whose net income was $4,000 or
over. Every person whose gross in
come for the year was $1,000 or over,
must make return regardless of the
amount of net income. This require
ment was not contained in the revenue
act of 1918. Every married couple
living together must make a return
either separate or joint as desired, if
their aggregate net income was $4,000
or over, or if their aggregate gross
income was $1,000 or more.
Gross income includes practically
every dollar the taxpayer received
during the year 1921. Net income is
gross income less the exemptions and
deductions specifically provided for by
| the act.
| Period for Filing Returns.
! The period for filing returns is from
I January 1 to March Is, 1922, when
made on the calendar year basis. If
! the taxpayer makes his return on the
/ fiscal year basis, the return must be
| filed on or before the fifteenth day of
| the third month following the close of
| the fiscal year. Nonresident aliens
must make return on or before the
| fifteenth day of the sixth month fol-
/ lowing the close of the fiscal year, or,
| if the return is made on a calendar
year basis on or before June Is.
/ The commissioner of internal
/ revenue may grant a reasonable eX-
/ tension of time for filing returns. Ex-
! cept in the case of taxpayers who are
( abroad, no such extension shall be for
a period of more than six months. The
| return must be filed with the collector
| of internal revenue for the district in
which the taxpayer lives or has his
| principal place of business. If the tax
payer has no legal residence, the re-
turn must be filed with the collector
of internal revenue at Baltimore.
May Pay in InstaIIments.
This year, as last, the tax may be
( paid in full at the time of filing the
return, or in four quarterly Install
/ ments, due on or before March Is
Junne 15, September l 5 and December
Is, If any installment is not. paid
| when due, the whole amount becomes
due and payable upon notice and de-
| mand from the collector. The penalty
for failure to file a return or pay the
tax within the time prescribed is d
| fine of not more than $1,000. Fol
"willful refusal to make return OF
pay the tax on time the penalty is
a fine of not more than $4,000 or one
years imprisonment, or both, together
with the cost of prosecution.