Norwich bulletin., 1921-12-14
EATON INsTRUCTs
 ON NEW FEDERAL TAXES

T
 Robert o. Eaton, internal revenue col lector for Connecticut, has issued the following statement on the tax laws:
 Enactment of new revenue legisIa- tion ,has brought to the offices of col lectors of internal revenue a flood of in- quiries regarding various provisions. The revenue act of 1921 became effective No- vember 23, 1921, unless otherwise pro- vided for
 ITO avoid error in the preparation of their returns and later difficulties with the bureau of internal revenue, taxpay- CTS are advised to carefully note the changes and when they become effec- tive
 "The excess profits tax is repealed as of January 1. 1922. The rates for 1921 are unchanged.
 "The surtax rates for the calendar year 1921 are unchanged, the range from year 1921 are unchanged, and range from 1 per cent. on the amount of net income between $5,000 and $6,000 to 65 per cent, on the amount of net. income | in excess of S1,000, 900. For the cal endar year 1912 the surtax rates range i from 1 per cent on the amount of net income between s6,o00 and s70,000 to 1 50 per cent. on the amount by which I the net income exceeds $200,000. l 'The exemption allowed for a depend ent is increased from s2O0 to $4oo. Mar ried persons living with husbands or wife | and heads of families are allowed per-
 sonal exemption of S2,500 Qnstead of | $2,000) unlass the net income is in ex- cess of s5,O00, in which case the per
 sonal exemption is only S2,000 The act provides that in no case shall the reduc-
 ton of the personal exemption from S2,- 500 to $2,000 operate to increase the tax which would be payable if the exemp- ton were S2.500 by more than the S5, GOO. This is to overcome the dispar- ity in the case of two taxpayers. one of
 whom is just within the lower S2,000 ex- emption and the other just within the higher S2,50o exemption.
 Single persons and married persons not living with husband or wife, are al- lowed an exemption of s1,000. Non-res ident aliens gre allowed a single per sonal exennption of s1,000. Persons hay ing gross incomes for 1921 of s5,0O0 ol
 over are eouired to make a return, re gardless of the amount of net income.
 1922 of the tax on stockholders of
 personal service corporation as sudh
 After that date such corporations ar | to be taxed in the same manner al
 other corporations.
 '"The income tax on corporations fo
 the calendar year 1922 and thereafter |
 increased rom 10 to 121s per cent. Tn
 S2,000 exemotion heretofore allowed cor
 porations s 10 be granted only to thos corporations whose net income is S25,
 900 or less.
 } Many persons are under the impres sion that he taxes on ice cream sof , drinks, etc; monthly returns of whic l are required, have been repealed with tn
 enactment ot the new act. These taxe } remain in force, until the end of tn calendar year 1921.
 ] NO change is made in the tax on ad missions, except that after January } 1922, there will be no tax where admis T sion is 10 cents or less. Effective Jar l luary 1, 1922. the following taxes ar , also abolished: On musical instrument
 sporting goods, chewing gum, portab
 electric fans, thermos bottles, fur al
 ticles, pleasure boats and pleasure @
 noes (unless sold for nore than $100 , toilet articles, medicines and numeror
 articles of apparel.
 "on. and after January 1. 1922 the ta on various works of art is reduced fro1 10 per cent. to per cent. the tax 0 candy from , per cent. to per cent an the tax on. carpets, rugs trunks, valise ] purses, fans, etc, fro 10 per cent sales price in excess of specified amoun e to per cent. of sales price in exces J of specified amounts.
 "T6e tax on parcel post packages a elsninated effective January\L 1922 I 'The new act provides that TO taxpa, I CT shall be subjected to unnecessary e, :, aninat1ons or investigations. and onI 1 one inspection of his books of accoun
 ishall be made for each taxable year ui > less the taxpayer requests otherwise, K the commissioner notifies the taxpay, ,, in writing that an additional inspectio e is necessary.
 /. "The period for filing returns On ti = calendar year basis Is from January to March 15, 1922. This year, as las e the tax may be paid in 1ull at the tin of filing the return or in four equal i ,. stallments, due on or before March 1 5. June IS, September Is and Decemb l. 15.
 7 Copies cf the revenue act may q had by application to the internal re
 enue office"