Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1921-12-15
ROSE EXPLAINS
INCOME TAX ACT
New Collector Tells OF Changes
And Popular Misapprehen-
sions of Public

r
District of Georgia:
Enactment of new revenue leg
islation has brought to the offices of
collectors of internal revenue flood
Of inquiries regarding various pro-
visions. The revenue act of 1921
became effective November %, 1921,
unless otherwise provided for
"To 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The excess profits tax is repealed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 1927 are unchanged.
THE surtax rates for the calen-
dar year 1921 are unchanged, and
range from per cent on the amount
of net income between $4,000 and
$4,000 to SIS per cent on the amount
of net income in excess of $1,000
600. For the calendar year 1922 the
surtax rates range from per cent
on the amount of net income be-
tween $4,000 and $4,000 to so per
cent on the by which the net in
come exceeds 100000.
Dependent Exemptions,
"The exemption allowed for a de-
pendent is increased from 5000 to
$500, married persons living with
husband or wife and heads of FAM
lies are allowed a personal exemp-
ton of $4,000 Gnstead 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 in
crease the tax which would be pay
able if the exemption were $4,000 by
more than the amount of the net
income in excess of $4,000. 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 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 sim
gle personal exemption of $1,000.
Persons having gross incomes for
1921 of $4,000 or over are required
to make a~return, regardless of the
amount of net income.
Provision is made for the repeal
as Of January 1, 1922 Of the tax
0 nstockhofders of a personal serv-
ice corporation as such. After that
date such corporations are to be tax
ed in the same manner as other cor
porations.
Corporation Taxes
THE income tax on corporations
for the calendar year 1922 and there
after is increased from 10 to IL 2
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
law. These taxes remain in force
until the end of the calendar year
1921.
"No change is made in the tax on
admissions, except that after Jam
oary /, 1922, there will be no tax
where admission is 10 cents or less.
Effective January /, 1922 the follow
ing taxes are also abolished: on musi-
cal instruments, sporting goods,
chewing gum, portable electric fans,
thermos bottles, fur articles, pleas
me boats and pleasure canoes, (un-
less sold for more than $100), toilet
articles, medicines and numerous ar
tlcles of apparel.
"On and after January /, 1922 the
tax on various works of art is re-
duced from 10 per cent to per cent,
the tax on candy from s 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 ito 5 per
cent Of sales price in excess of speci-
lied amounts.
The tax on parcel post packages
IS eliminated effective January l.,
1922.
Only One Book Inspection.
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-
quest sotherwise, or the Commission
er notifies the taxpayer. in writing
that an additional inspection is neces-.
sary.
The period for filing returns on
ehe calendar year basis is from JAM
&ry l to March Is, 1922. This year,
last, the tax may be paid in full
" the time of filing the return OF
IN four equal installments, due on or
before: March Is, June is, Septem
q Der = ovid TNs.ar,.. l. -. 4