Bonners Ferry herald. [volume] (Bonners Ferry, Idaho) 1904-current, 1921-12-29
CHANGES MADE
in INCOME TAX
STATE COLLECTOR OF INTERNAL
REVENUE NOTES IMPORTANT
CHANGES IN INCOME LAW
SURTAX RATES NOT CHANGED
Exemptions Allowed for Dependents
Is Increased.

The time is drawing near for the
payment of income taxes for 1921 and
II VIII be well for those of the citizens
oil Boundary county who are subject
to this tax to familiarize themselves
with the salient features of the income
tax law as 1t now stands after being
revised at the last session Of congress.
In this connection Evan Evans. col
lector Of internal revenue for Idaho
announces that he is receiving many
inquiries regarding the payment OF
income and other taxes collected
through his office. These inquiries
are reaching him because of dis
patches concerning changes in the
law, but he explains that these do not
become effective for some time later.
In order, however, to avoid error in
preparing returns, Collector Evans ad-
vises taxpayers to note carefully the
following changes and when they go
into effect:
The excess profits tax is repealed as
of January l, 1922. The rates for 1924
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 100000 and $4,000 90,
to SO per cent on the amount of net
income in excess of $1,000,000.00. For
the calendar year 1922 the surtax rate,
/ l per cent on the amount of net in
come between $6,00000 and 100000
TO 80 per cent on the amount by which
the net income exceeds $50 100000.
The exemption allowed for a de-
pendent is increased from $4,000 to
$4,000 Married persons living with
husband or wife and heads of families
are allowed personal exemption of
$2,5OOOO Qnstead of $2,00000) unless
the net income is in excess of SIS, 100000
in which case the personal exemption
is only $2,000.00 The act provides
that in no case shall the reduction of
the personal exemption from S2,5OO.0O
to S2,OOO.O0 operate to increase the tax
which would be payable if the exemp-
ton were $2,500.00 by more than the
amount of the net income in excess
! OF S5,OO00O This is to overcome the
disparity in the case of two taxpayers,
one of whom is just within the lower
S2,0OO.OO exemption and the other lust
within the higher $2,500.00 exemption.
Single persons, and married persons
not living with husband or wife. are
allowed an exemption of 81 900 90.
Nonresident aliens are allowed a sin
4 gle personal exemption of 100000.
Persons having gross incomes for 1921
of $5,00O.00 or over are required to
make return, regardless of the
amount of net income.
Provision is made for the repeal as
OF January l, 1922, of the tax on stock
Il a t,o1
ton as such. After that date such cor
porations 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 1870 per cent
! me $2,OOO.OO exemption heretofore al
lowed corporations is to be granted
only 10 those corporations whose net
income is $25,000.00 or less
! Many persons are under the impress
sion that the tax 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 in the tax on ad-
missions, except that after January /.
1922, there will be no tax where ad
mission is less than ten cents. Effect
i've January 1, 1922, the following
taxes are also abolished: On musical
, instruments, sporting goods, chewing
gum, portable electric fans, thermos
bottles, fur articles, pleasure boats
and pleasure canoes, unless sold for
more than S100, toilet articles, medi-
cines and numerous articles of ap-
parel,
On and after January 1, 1922, the
tax on various works of art is reduced
from 10 per cent to per cent. the
tax on candy from 5 per cent to 8 per
cent and the tax on carpets, rugs.
trunks, valises, purses, fans, ETC., from
10 per cent of sales price in excess
of specified amounts to 5 per cent of
sales price in excess of specified
amounts.
The tax on parcel post packages is
eliminated effective January /, 1922.
The new act provides that no tax
payer shall be subjected to unneces-
sary examinations or investigations.
and only one inspection of his books
of accounts shall be made for each
taxable year unless the taxpayer re-
quests otherwise, or the commissioner
notifies the taxpayer in writing that
an additional inspection is necessary.
The period for filing returns on the
calendar year basis is from January
1st to March 18th, 1929. This year.
as last, the tax may be paid in full at
the time OF filing the return or in four
installments, due on or before March
Is, June Is, September Is and Deem
Der 10.
] Ehricfuac Party Gafurdou