The Devils Lake world., 1921-12-14
Federal TAX
. RATES GIVEN OUT
BY REVENUE OFFICE

Read It, Even if You
Had No Income.
Enactment of new revenue legisla-
ton has brought to the Offices of Col
lectors of Internal Revenue a flood OF
inquiries regarding various provisions.
The Revenue Act of 1921 became ef-
fective November %, 1921.
To avoid error, taxpayers are advis-
ed to carefully note the changes and
when they become effective.
The excess profits tax is repealed as
of January 1, 1922. The rates for
1921 are unchanged.
The surtax rates for the calendar
year 1921 are unchanged. For inr
stance, if the amount of your net in
come exceeds million dollars, 65 per
cent of it goes back to Uncle Sam.
We put this in for the benefit of all
North Dakota business men and farm
ers, who might wish to take an ina
ginary flight into high finance.
The exemption allowed for a de-
pendant is increased from 5000 to
$4O0. Married persons living with
husband and wife and heads of fami-
lies are allowed a personal exemption
of $4,000 (instead of $2,000) 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 the
personal exemption from $2,500 to
$4,000 operates to increase the tax
which would be payable if the exemp-
ton were $4,000 by more than the
amount of the net income in excess of
$4,000. This is to overcome the dis
parity in the case of two taxpayers,
one of whom is just within the lower
$4,000 exemption and the other just
within the higher $4,000 exemption.
Single persons, and married persons
not living with husband or wife, are
allowed an exemption of $1,000. Non
resident aliens are allowed a single
personal exemption of $1,000. Persons
having gross incomes for 1921 of
$4,000 or over are required to make
a return, regardless of the amount of
net income.
Provision is made for the repeal as
of January l, 1922, of the tax on
stockholders of personal service COR
pcration as such. After that date
such corporations are to be taxed in
the same manner as other corpora
tons.
The income tax on corporations for
the calendar year 1922 and thereafter
Is increased from 10 to IL 1-2 per cent.
The $4,000 exemption heretofore al
lowed corporations is ito be granted
only TO those corporations whose net
income is s25,Co0 OF less.
Many persons are under the impress
| sion that the taxes 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are required, have been repealed with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.
No change is made on the tax or
admission, except that af er January
l, 1922, there Will be no tax where ad
mission is 10 cents or less. Effective
January /, 1922, the following take!
:re also abolished: on musical instru
ments, sporting goods, chewing gum
portable electric fans, thermos bottles
fur articles, pleasure boats and pleas
IRE canoes, (unless sold for more thai
S100), toilet articles, medicines an,
numerous articles of apparel.
I On and after January l., 1922 tn
ak on various articles reduced fron
. 10 per cent to per cent, the tax O
candy from per cent to per cen
and the tax on carpets, rugs, trunk:
yalises, purses, fans, etc. from 10 pc
cent of sales price. in excess Of speci
fled amounts 10 5 per cent of sale
price in excess of specified amounts.
The tax on parcel post parkages
7 eliminated effective January 1, 1922
The new act provides that no ia,
payer shall be subjected to unnece:
s sary examinations or investigation
;. and only one inspection of his books {
t account shall be made for each tax,
n BILE year unless the taxpayer reques
: otherwise, or the Commissioner not
t fies the taxpayer in writing that q
$ additional inspection is necessary.
) The period for filing returns on Il
e calendar year basis is from Janua1
l to March Is, 1922. This year, ::
d last, the tax may be paid in full I
IS the time of filing the return or in fo,
e equal installments, due on or befo
d March Is, June Is, September Is al
le December Is.
Copies Of the revenue act may