The Record-courier. [volume] (Gardnerville, Nev.) 1904-current, 1921-12-30
New Income Tax
Law Explained
MANY CHANGES IN NEW LAW
AND TAXPAYERS URGED TO
STUDY NEW FEATURES

The following statement is issued BY
Collector of Internal Revenue. Louis
A. Spellier the district of Nevada:
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The excess profit tax is repealed as
of January l, 1922. The rates for 1921
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 $4,000 and $4,000 to IS
per cent on the amount Of net income
in excess of $1,40O,00O. For the cal
endar year 1922 the surtax rate range
from l per cent in the amount of net
income between $4,000 and $4,000 to
so per cent on the amount by which
the next income exceeds 100000.
THE exemption allowed for de-
pendent is increased from 5000 to
$400. Married persons living with
husband or wife and heads Of families
are allowed personal exepmtion 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 $2,500 to
$4,000 operate to increase the tax
which amount would be payable II the
exemption were $4,000 by more than
the amount of the net income in ex-
cess of $4,000. This Is to overcome
the disparity in the case of two tax
payers, one of whom is just within the
lower $4,000 exemption and the other
just within the higher $2,500 exempt
ion.
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.
1921 of $1,000 or over are required to
make return, regardless Of the
amount of net income.
Provision is made for the repeal as
of January 1, 1922 of the tax on stock
holders of a personal service corpora
ton os such. After the date such
corporations are to be taxed In the
same manner as other corporations.
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 hereto
fore allowed corporations Is to be
granted only to those corporations
whose net income is $25,000 or less.
Many persons are under the i'm
preston htat 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 un-
til the end of the calendar year, 1921.
"No change is made in the tax of
/ Or hot oft To- nv
l, 1922 there will be no tax where ad-
mission is 10 cents or less. Effective
January l, 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
canoes, (unless sold for more than
s100) toilet articles, medicines and
numerous articles of apparel.
ION and after January 1, 1922 the
tax on various works of art is re-
duced from 10 per cent to per cent
the tax on candy from per cent to
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 per cent OF
sales price in excess of specified
amounts.
'The tax in 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 tax
albe year unless the taxpayer requests
otherwise, or the Commissioner noti-
fies the taxpayer In writing that an
additional inspection is necessary.