The weekly times-record. (Valley City, N.D.) 1912-1922, 1921-12-15
FACTS ABOUT new
REVENUE LAW

kEvENUELAW(
The following statement is issued
by Collector Of Internal Revenue, Gun
der Olson, District of North Dakota.
enactment Of new revenue legis-
lation has brought to the offices of
Collector of Internal Revenue flood
Of inquiries regarding various provis-
ions. The Revenue Act of 1921 be-
came effective November %, 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''The excess profit tax is repealed
as of January l, 1922. The rates of
1921 are unchanged.
"The surtax rates for the calendar
year 1921 are unchanged, and range
from 1 percent 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 100000. For the
calendar year 1922 the surtax rates
range from 1 percent on the amount
of net income between $4,000 and
| $4,000 to SO per cent on the amount
by which the net income exceeds
100000.
"The exemption allowed for de-
! pendent increased from 5000 to $500.
Married persons living with husband
or wife and heads of families are al
lowed personal exemption of $4,000
(instead 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 that 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 $500 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
exemption and the other just within
the highre $1,000 exemption.
"Single persons and married per-
sons not living with husband or wife,
are allowed an exemption Of 81 900.
Nonresident aliens are allowed a
single personal exemption Of $1,000.
Persons having gross incomes orr
! 1921 of $4,000 or over are required
! to make a return, regardless OF the
amount of net income.
'Provsion is made for the repeal as
of January l, 1922 of the tax on
stockholders of personal service
corporation as such. After that date
such corporations are to be taxed in
| nf a.
lions.
"The income tax on corporations for
| the calendar year 1922 are thereafter
is increased from 10 to IL IL percent.
The $4,000 exemption heretofore al
lowed corporations is to be granted
only to those corporations whose net
income in $4,000 or less.
"Many persons are under the i'm
preston that the taxes on ice cream
soft drinks, ETC., monthly returns of
which are required, have been repeal
ed 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 on
admissions, except that after January
l, 222, there will be no tax where ad-
mission is 10 cents or less. Effective
January !, 1922, the following taxes
are also abolished; on musical instru-
ments. sporting goods. chewing gum:
portable electrct fans, thermos bot
ties, fur articles, pleasure boats, and
pleasure canoes, (unless sold for more
than $10O), toilet articles: medicines
and numerous articles of apparel.
con and after January 1, 1922, the
tax on various works of art is reduc-
ed from 10 per cent to 5 per cent, the
eaX on acndy from S percent to per
cent and the tax on carpets, rugs:
trunks, valises: purses, fans, etc. from
10 per cent of sale price in excess OF
specified amounts to percent OF
sales price in excess of specified
amounts.
''The tax on parcel post packages is
eliminated effective January 1, 1922.
"The new act provides that no tax
payer shall be subjected to unneces-
sary examinations of Investigations:
and only one inspection of his books
of account shall be made for each tax
able year unless the taxpayer requests
otherwise, or the Commissioner mott
fies the taxpayer in writing that an
additional inspection is necessary.
"The period for filing returns on the
calendar year basis is from January
1 to March Is, 1922. This year, as
last, the tax may be paid in full at
the time Of filing the return or in
four equal installments. due on or be-
fore March Is, June Is, September 15
and December Is.
"Copies of the revenue act may be
had by application to this office"
Il