The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-12-17
Income Tax
Regulations
Collector Of Internal Revenue
Bradley Issues Statement
For Information Of
Public

Columbia, Dec 14.-The follow
ing IS issued by Acting Collector of
internal Revenue. W. r. Bradley,
District of South Carolina:
Enactment Of new revenue leg
islation has brought to the offices
of collectors Of internal revenue a
flood Of inquiries regarding various
provisions The Revenue Act Of
1921 became effective November
%. 1921. unless otherwise pro-
vided for.
To avoid error in the preparation
Of their returns and later difficult
ties with the bureau Of internal
revenue, taxpayers are advised to
carefully note the changes and
when they become effective.
The excess profits tax is repealed
as of January /, 1922. The rates
for 1921 are unchanged.
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 income in ex-
cess of s1,00O,O0o. For the calen-
dar year 1922 the surtax rates
range from 1 per cent. 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 $200,000.
The exemption allowed for a de-
pendent is increased from $500 to
$49e. Married persons living with
husband or wife and heads Of fam
lilies are allowed a, personal ex-
emption Of $4,000 (instead Of ST.
OG0), unless the net income is in
excess Of $1,000, in which case
the personal exemption is only ST.
600. The act provides that in nc
case shall a reduction Of the per.
sonal exemption from $4,000 tc
$4,000 operate to incr 'se the tax
which would be payable If the ex-
emption were $4,000 by more than
the amount Of the net income IN
excess of $4,000. This is to over
come the disparity in the case of
two taxpayers, ono Of whom is just
within the lower $4,000 exemption
and the other just within the high
er $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 al
lowed single personal exemption
of $1,000. Persons having gross
incomes tor 1921 Of $4,000 or over
are required to make a return, re-
gardless of the amount of net in
come.
Provision is made for the repeal
as of January 1, 1922 of the tax
on stockholders Of a personal ser
vice corporation as such. After
that date such corporations are to
be taxed in the same manner as
other corporations.
The income tax on corporations
for the calendar year 1922 and
thereafter is increased from 10 to
- 1-2 per cent. The $4,000 eX-
emption heretofore allowed corpor-
ations is to be granted to those cor
porations whose net income is S25,-
600 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 repealed with the enactment
of the new act. These taxes re-
main in force until the end of the
calendar year 1921.
No change is made in the taA
on admission, except that after
January l, 1922 there will be nc
/ tax where admission is 10c or less
Effective January 1. 1922 the fol-
loving taxes are also abolished: or
musieal instruments, sporting
goods, chewing gum, portable
electric fans, thermos bottles, ful
articles, pleasure boats and pleas
ure canoes, (unless sold for more
than $1,000, toilet articles, nedi.
cines and numerous articles OF ap'
parel.
On and after January /. 1922. the
tax on various works Of art is re-
duced from 10 per cent. to. pei
cent, the tax on candy from
per cent. to 3 per cent. and the