, 1921-12-22
NEW REVENUE LEGISLATION


NEW REVENUE LEGISLATION
The following statement is issued
by Collector of Internal Revenue. NJ.
S. Reynolds. District of Wyoming:
enactment of new revenue legis-
latiOn 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 provided for"
ITO 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THE excess profits tax is repealed
as of January l, 1922. The rates for
1921 are unchanged.
1.-The surtax rates for the calendar
year 1921 are unchanged. and range
from | per cent on the amount Of net
income between 5000 and $4,000
to IS per cent on the amount Of net
income in excess of 5 $1,000. 900. For
! the calendar year 1922 the surtax
! rates range from l per cen on the
amount Of net income between $4,000
and $4,000 to so per cen on the
mount by which the net income eX-
! ceeds $500, 900.
THE exemption allowed for a de-
pendent is increased from $500 to
$500. Married persons living with
husband or wife and heads of families
are allowed a personal exemption OF
$4,000 (instead of $4,000 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 $4,000 to
$4,000 operate to increase the tax
which would be payable IL the exemp-
ton were $4,000 by more than the
amount OF the net income in excess
of $1,000. This is to overcome the
disparity in the case OF two taxpayers,
one of whom is just within the lower
1000 exemption and The other just
within the higher $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 allowed a
single personal exemption of $1,000.
Persons having gross incomes for
1921 Of $1,000 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 a personal service
corporation 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 there
after Is increased from 10 to 12h
per cent. The $4,000 exemption
heretofore allowed corporations is to
be granted only to those corporations
whose net income is $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 re-
pealed with the enactment Of the
new act. These taxes remain in
force until the end Of the calendar
year 1921.
mo change is made in the tax on
admissions, except that after January
/, 1922 there will be no tax where ad-
mission is 10 or less. Effective
January 7, 1922 the following taxes
are also abolished: on musical instru-
ments, sporting goods, chewing gum,
portable electric fans, thermos bot
ties, fur articles pleasure boats and
pleasure canoes, (~unless sold for
more than 5000 toilet articles, med
icines and numerous articles OF ap-
parel.
ION and after January l. 1922 the
tax on various works of art is re-
duced from 10 per cent to 5 per cent.
the tax on candy from 5 per cent to
3 per cent and the tax on carpets.
rugs, trunks, valises, purses, fans.
r s"om 10 ner cent Of sales price
in excess Of specified amounts to 5
per cent of sales price in excess of
spc"'F'ed amounts.
1.-THE tax on parcel post packages
= ninated, effective January l.
1922.
1.-THE new act provides that no
necessary examinations or investiga-
tions, and only II inspection of his
books of accounts shall be made for
each taxable year unless the tax
payer requests otherwise. or the
Commissioner notifies the taxpayer
in writing that an additional inspec-
ton is necessary.
THE period for filing returns on
the calendar year basis is from Janu-
airy l to March Is, 1922. This year.
as last, the tax may be paid in full at
the time of filing the return or in
tour equal installments. due on or be-
fore March IS, June 10, September
Is and December Is.
COPIES of the event act may be
had by application to this office.