Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1921-12-16
NEW INCOME TAX
CHANGES EXPLAINED
Collector Burns Poe Also Tells of
Changes in Internal Revenue
Laws

Z ID VI ho OC' AOl tuG DlSCIlCJ VI w assn
/ ington:
Enactment of new revenue legis-
lation has brought to the offices of
collectors of internal revenue a flood
of inquiries regarding various pro-
visions. The revenue act of 1921 be-
came effective November 23, 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''The excess profits tax is repealed
as of January /, 1922. The rates for
1921 are unchanged.
THE surtax rates for the calendar
year 1921 are unchanged, and, range
from one per cent on the amount of
net income between $4,000 and $4,000
to 65 per cent on the amount of net
income in excess of $1,000,000. For
the calendar year 1922 the surtax
rates range from one 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 income ex-
ceeds 100000.
'The exemption allowed for de-
pendent is increased from 5000 to
$500. Married persons living with
husband or wife and heads of fam
lilies 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 re-
duction of the personal exemption
from $500 to $4,000 operate to in
crease the tax which would be pay
able if the exemption were $500 by
more than the amount of the net in
come 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 a sin
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 |, 1922, of the tax on
stockholders of a personal service
corporation as such. After that
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 1914
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
act. These taxes remain in force un-
til the end of the calendar year
1921.
THE tax on parcel post packages
is eliminated, effective January /,
1922.
1.-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 commission
er notifies the taxpayer in writing
that an additional inspection is neces-
sary.
THE period for filing returns on
the calendar year basis is from Janu-
airy to March Is, 1922. This year
as last, the tax may be paid in full
at the time of filing the return or in
four equal installments, due on OIL
before March Is, June Is, Septem-
Der Is and December Is.
COPIES of the revenue act may
be had by application to the office Of
Collector in Internal Revenue, Ia
coma, Washington.
HIGH SCHOOL c. f..