Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1921-12-14

Many Changes not Effective for 1927
Returns. Exemptions for Small
Incomes Raised


The following statement is issued
by Collector of Internal Revenue r.
w. McCeun, for the district of Yer
mont:
Enactment of new revenue legis-
lation has brought to the offices Of
collectors of internal revenue a food
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"The excess profits tax is repealed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 1, 1922. The rates for
1921 are unchanged.
"The surtax rates for the calendar
from 1 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 1 per cent. on the
amount of net income between $4,000
and $4,000 to 80 per cent. on the
amount by which the net income ex-
ceeds 100000.
"The exemption allowed for de-
pendent is increased from 5000 to
$400. Married persons living with
husband or wife and heads of fami-
lies are allowed a personal exemp-
tion of $1,000 (instead of $2,000) un-
less the net income is in excess Of
$4,000, in which case the personal ex-
emption is only $4,000. The act pro-
vides that in no case shall the reduc-
tion of the personal exemption from
$500 to $4,000 operate to increase
the tax which would be payable If
the exemption were $4,000 by more
than the amount of the net income in
excess of $4,000. This is to over
come the disparity in the case of two
taxpayers, one of whom is just with
in the lower $4,000 exemption and
the other just within the higher
$1,000 exemption.
Single persons, and married per-
sons not living with husband or wife,
are allowed an exemption of $1,000.
Nonresident aliens are allowed
single personal exemption of $1,000.
Persons having gross incomes for
1921 of $4,000 or over are required
to make return. regardless of the
amount of net income.
Provision is made for the repeal
as of January I, 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 corpora
tions.
"The income tax on corporations
for the calendar year 1922 and
thereafter is increased from 10 to
12R 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
until the end of the calendar year
1921.
mo change is made in the tax on
admissions, except that after Janu-
ary 1, 1922, there will be no tax
where admission is 10 cents or less.
Effective January 1, 1922, the follow
ing taxes are also abolished: on mus
ical Instruments, sporting goods,
chewing eum, portable electric fans,
thermos bottles, fur articles, pleas
ure boats and pleasure canoes (un-
less sold for more than $10O), toilet
articles. medicines and numerous art
icles of apparel.
"On and after January /, 1922,
the tax on various works of art is
reduced from 10 per cent. to per
cent, the tax on candy from 3 per
cent to per cent, and the tax on
carpets, rugs, trunks, valises, prus-
es. fans, etc., from 10 per cent Of
sale price in excess of specified
to 5 per cent. Of sales price
in excess of specified amounts.
"The tax on parcel post packages is
effective January 1, 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
taxable year unless the taxpayer re-
quests otherwise, or the commission.
sr notifies the taxpayer in writing
that an additional inspection is nee
essary.
"The period for filing returns on
5he calendar year basis is from jan
1ary 1 to March 10, 1922. This wear.
Is last. the tax may be paid in full
1T the time of filing the return or
n four equal installments, due on or
before March Is, June Is, September
L5, and December Is.
"Copies of the revenue act NAV be
lad by application to this office"