The daily times., 1921-12-13
CHANGES IN INCOME TAX LAWS
Raleigh. n. G. Dec IA

iNoiSlSh, ~ u. Dec. 10
The following statement is issued
by Collector of Internal Re. pnur GIL
liam Grissom. Collee r, t.. Dis rict
OF North c rol.na
Enactm of new rev nfle leri
latlon has brought to the Offices of |.
Collectors or Internal Ke, enue 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 repeal
ed as of January l, 1922. The rates
for 1921 are unchanged n
/ The surtax for the calendar year
i 1921 are unchanged, and range from
l per cent ON the amount of net in
come between $4,000 and $4,000.
to 65 per cent on the amount of
net income in excess of 100000.
For the calendar year 1922 the sur
!: tax rates range from l 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 in
come exceeds 100000
'The exemption allowed for del
3 pendent is increased from 5000 to |,
$400. Married persons living with |!
husband or wife and heads of FAM
lies are allowed a personal exemption
of $4,000 (instead of $2,0O0} unless ,
81 the net income is in excess of $1,000,
q in which case the personal exemption |
q is only $4,000. The act provides that
3! in no case shall the reduction of the !
: personal exemption from $2,5OO tol
$4,000 operate to increase the tax
which would be payable if the exemp-
tion were $2,5OO 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
$4,000 exemption and the other just
with the higher $4,000 exemption.
= 'Single persons, and married per-
sons not living with husband or wife,
q are allowed an exemption of 1000.
= Nonresident aliens are allowed
= single personal exemption of $1,000.
z Persons having gross incomes for
=I1921 of $1,000 or over are required
e to make a return, regardless of the
= amount of net income.
: provision is made from the repeal
81 as of January l, 1922 of the tax on
g, stockholders of a personal service
z corporation as such. After that date
=, such corporations are to be taxed in
= the same manner as other corpor-
= ations.
= .The income tax on corporations
= for the calendar year 1922 and there
. after is increased from 10 to II IL
= per cent. The $4,000 exemption here
ri tofore allowed corporations is to be
=f granted only to those corporations
. whose net income is s25 900 or less
Many persons are under the I'M
= preston that the taxes on ice cream
. soft drinks, ETC., monthly returns ol
ulCu oil z iOquh GU, lIc' z oSSiA SEN'.A
ed with the enactment of the new
= act. These taxes remain in force until
q the end of the calendar year 1921.
e mo change is made i'll the tax OF
Fl admissions, except that after Janu
. ary /, 1922 there will be no ia.
. Effective January 1, 1922, the fol
= lowing taxes are also abolished: OF
. musical instruments, sporting goods
= chewing gum, portable electric rams
. thermos bottles, fur articles, pleasure
= boats and pleasure canoes, unless sol'
. for more than s1O0, toilet articles
- medicines, and numerous articles o
= apparel.
. "On and after January l, 1922, tn
. tax on various works Of art is reduc
LED from 10 per cent to 5 per cent
.l the tax on candy from per cent t
= per cent and the tax on carpets
- rugs. trunks, valises, purses, fans
Fl ETC.. from 10 per cent of sales price i
- excess of specific amounts to Pc
= cent of sales price is excess OF specl
= fed amounts.
. s'The tax on parcel post package
81
Ri is eliminated effective January
II 1922
Fl s.The new act provides that 4
ri taxpayer shall be subjected to unn
Fl cessary examinations or investig;
Fl tions and only one inspection of h
Fl books of accounts shall be made II
Ri each taxable year unless the taxpay'
n -oa,oc+c othorwisa or the COmmi