Montpelier examiner. [volume] (Montpelier, Idaho) 1895-1937, 1921-12-30
INCOME TAX
Information

Collectors Oh 4MIeEua1 h6N0mWS u
flood of inquiries regarding various
provisions. The Revenue Act of
1891 became effective November %,
1921 unless otherwise provided for.
.sTo avoid error In tho prepara-
tion OF their return and later diff
culties with the Bureau of Internal
Revenue, taxpayers are advised to
carefully note the changes and when
they become effective.
.sThe excess profits tax is repealed
as of January |, 1922. The rates
for 1891 are unchanged.
"The surtax rates for the Calendar
year 1921 are unchanged. and range
from / per cent on the amount or
net income between 100000 and
$4,000. 90, to 66 per cent on the
amount of net income In excess OF
$1,000, 100000. For the calendar
year 1922 the surtax rate, per cent
on the amount net income between
s6,OOO.OO and 100000 to SO per
cent on the amount by which the
net income exceeds $6,OOO.00.
'sThe exemption allowed for de-
pendent il increased from $4,000
to $4,000. Married persons living
with husband or wife and heads Of
families are allowed q personal ex
emption of $2,5O0.O0 (instead Of
s2.0OO.OO) unless the net income Is
in excess of S5,OOO.00 in which case
tho personal exemption is only $2.-
100000. The Act provides that in no
case shall the reduction Of the per-
sonaI exemption from $2,50O.OO to
100000 operate to increase the
tax which would be payable IL the
exemption were $2,50O.O0 by more
than tho amount of the net income
in excess OF $6,OOO.O0. This is 20
overcome the disparity in the case
of two taxpayers, one of whom Is
Just within the lower 100000 ex-
emption and the other just within
i the higher $2,5OO.OO exemption.
Single persons and married per
sons not living with husband or wife,
are allowed an exemption OF 81
10000. Nonresident aliens are al
lowed single personal exemption
of 100000. Persons having gross
incomes for 1921 OF. 100000 On
over are required to make return
regardless OF the amount OF net in
come.
provision Is made Cor the repeal
as of January /, 1922 OF the tax on
stockholders of o personal service
corporation as such. After thai
date such corporations are TO be tax
ed In the same manner as other cor
porations.
Tho income tar on corporation
for tho calendar year 1922 an{
thereafter Is increased from 10 tt
12h per cent. The 100000 ex
emption heretofore allowed corpO
rations Is to be granted only to thosl
corporations whose net income !
$25, 10000 or less.
MANY persons are under the i'm
preston that the tax on Ice cream
soft drinks, etc., monthly return
of which are required, have been re
pealed with the enactment OF th
new act. These taxes remain In fore
until the end OF the calendar yea
1921.
mo change Is made In the tax o
admissions except that after JanT
airy /, 1922, there will be no ta
where admission Is less than te
cents. Effective January 1. 102'
th0 following taxes are abolished
on musical instruments. sportin
goods. chewing gum, portable ele'
trio fans tremos bottles, fur art
cles. medicines and numeroue art
cles Of apparel.
"On and after January /, 192
the tar on various works Of art fs r
duced from 10 per cent TO ) per col
the tax on candy from per cent
per cent and the tax on carpet
rugs. trunks vaiises, purses, Tan
etc, from 10 per cent Of sales pri
in excess OF specified amounts TO
per cent OF sales price In excess
specified amounts TO 5 per cent
sales price In excess of specifi
amounts.
Tho tar On parcel post pachag
IN eliminated effective January
1922.
The new act provides that no u
payer shall be subjected to unne
essary examinations or investia
lions. and only one inspection OF !
books OF accounts shall be made
zach taxable year unless the taxps
er requests otherwise. or the Co
missioner notifies tha taxpayer
writing that an additional inspect
! necessary.
Tho period for filing returns
nc calendar year basis Is from i
nary LIST TO March Is 1879. T
year. as last, the tax may be paid
kuil at the time OF filing the rett
or In four instaiIments. due on
before March Is. June 16, septem
5 and December 1g-t