Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-12-10

right to exercise family contfoi anu
nrovide for those dependents is based
upon some moral or legal obligation"
The normal rate of tax, q per cent.
On the first $4,000 Of net income above
the exemptions, and s per cent on
the remaining net income, remains IN
changed This applies TO citizens and
residents of the United States. Ahen
non-residents are taxed to the full .
per cent. on income received from
sources within the United States.
Nonresident aliens are allowed. oni9
a single personal exemption OF Si.,-
600. To overcome the disparity III
the amount of normal tax IN the case
of two taxpayers, one of whom is JUST
within the lower $4,000 exemption, the
other being just within the higher ".
500 exemption the act provides thas
the reduction of the personal exemp-
ton from $1,000 to $4,000 snail not
,nerate to increase the tax, Wnlch
would be payable if the exemption
we're $4,000, by more than the net IN
come in excess of $4,000. For ex-
ample, a married man or head OF a
family has a net income for 1921 OF
5000. Assuming that ne has no de,
pendants, his tax, if he were allowed
only the $4,000 exemption, would be
s12O.40. Under the benefits OF the
above provision however, his tax IS
s11O. 4 per cent. on the amount OF ms
taxable income of $4,000, or $500, plus
the amount by which his net income
exceeds $4,000.
Surtax Rates.-Many inquiries are
received relative to the surtax rates.
Taxpayers in the preparation OF
their returns should be careful to note
that the surtax rates for the calendar
year 1921 remain unchanged. Inc
surtax rates on incomes Tor l92l
range from / per cent. on the amount
of net income between $4,000 and
5000 to 65 per cent. on the amount
of net income in excess of 1000, u00-
For the calendar year 1922 and each
calendar year thereafter, the surtax
ranges from l per cent. on the AMOUNT
If net income between $4,000 and S1O,-
900 to so per. cent. by which the
amount of net income exceeds Szoo'-
900.
Returns Required.-Returns are re-
uuired of every single person whose
net income for 1921 was 81 900 or
over, every married person not living
with husband or wife whose net in
come was $1,000. and every married
person living with husband. or wife
whose net income was $4,000 or over.
Every person whose gross income Tor
the year was $4,000. or over must
make a return regardless OF the
amount of net income. This require
ment was not contained in the rev.
enue act of 1918. Every married
couple living together must make
return, either separate or: joint as
desired, if their aggregate net in
come was $4,000 or over, or If their
aggregate gross income was $4,000
or more.
Gross income includes practically
every dollar the taxpayer received
during the year 1921" Net income rs
gross income less the exemptions and
deductions specifically provided for
by the act. Z ,.t.,
STPeriod for Filing Returns.-The
period for filing returns is from Jannf-.
iary / to March Is, 1922, when made
on The calendar year basis. If the
taxpayer makes his return on the fls-
cal year basis, the return must be fill
ed on or before the fifteenth day of
the third month following the close
of the fiscal year. NONRESIDENT
aliens must make return on or be-
fore the fifteenth day of the sixth
month following the close of the lis
cal year, or, if the return is made on
a calendar year basis on or before
June Is. n, -.
The commissioner of internal rev.
enue may grant a. reasonable extern
sion of time for filing returns. Ex-
cept in the case of taxpayers who are
abroad, no such extension shall be tor
a period of more than six months.
The retur1Pmust be filed with the col
lactor of internal revenue for. the dis
trict in which the taxpayer lives or
has his principal place of business. Al
the taxpayer has no legal residence,
the return must be filed with the col
lector of internal revenue at Baltl-
more.
Nav Pay in Installments. = This.
year as last, the tax may be paid in
full at the time of filing the return,
or in four quarterly installments, due
on or before March Is, June 10, Sep
TENDER Is and December Is. If any
instaIlment is not paid when due, the
whole amount becomes due and pay
able upon notice and demand from the
collector The penalty for failure to
file return or pay the tax within
the time prescribed is fine of not
more than $1,000. For 'willful re-.
fusal" to make return or pay the tax
on time the penalty is fine OF not
more than $4,000, or one years i'm
prisonment, or both, together with the
cost of prosecution.