The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1922-01-13
new REVENUE LAWS
EXPLAINED BY DONALD

The following statement is ISSUED
by Collector of Internal Revenue G
L. Donald, district of Mississippi:
Enactment of new revenle leeis
lation has brought to the Offices o,
collectors of internal revenue a foot
of inquiries regarding various provis
ions. The Revenue Act of 1921 be
came effective November %, 1921
unless otherwise provided for
! ITO avoid error in the preparation
of their returns and later dificultie.
with the Bureau of Internal Revenue
taxpayers r advised to CAREFUL,
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THE excess profits tax is repealed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.
1.-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 &c.
600 to, 65 per CEN on the amount OF
net income in excess of $1,000, 900.
For fhe calendar year 1922 the sur
tax rates range from / 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
exceeds $780, 900.
1.-THE exemption for a dependent is
increased from $500 to $4OO. Married
persons living with husband or wife
and heads of families exception 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 $4,000 to
$4,000 operate to increase the tax
which would be payable if the exemp-
ton 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 taxpay-
ers, one of whom is just within the
lower $4,000 exemption and the 9TH
er just within the higher $4,000 ex-
emption.
"Single persons, and married per-
sons not living with husband or wife,
are allowed an exemption of $1,000.
personal eemption of $1,000.
having gross incomes for
1921 of $4,000 or over are required
" Aidhc d TcLuTH, TcRdTOleSS u Tile
of net income.
Provision is made for the repeal
as of January l, 1922, of the tax on
of a personal service cor
poration as such. After that date
such corporations are to be taxed in
the same amer as other corpora
lions.
"The income tax for the calendar
year 1922 and thereafter is increased
10 to ~ 1-2 per cent. The
$4,000 exemption heretofore allowed
corporations is to be granted only to
hose corporations whose net income
S $4,000 r less.
MANY persons are under the i'm
that the taxes on ice cream
soft drinks, etc, monthly returns of
which are required, have been re-
)ealed with the enactment Of the
lext act. These taxes remain in
until the end of the calendar
1921.
"No change is made in the tax on
omissions, except that after Janu-
Try, 1922, there will not be no tax
where admission is 10 cents or less.
effective January 1, 1922, the fol-
owing taxes are also abolished: on
instruments, sporting goods,
hewing gum, portable electric fans,
hermos bottles, fur erticles, pleasure
and pleasure canoes, (unless
old for more than S100), toilet ar
icles, medicines and numerous ar
icles of apparel.
con and after January ], 1922, the
TX on various works of art is re-
uced from 10 per cent to 5 per cent,
he tax on candy from 5 per cent to
hree per cent and the tax on carpets,
lgs, trunks, valises, purses, fans,
to-, from 10 per cent of sale price in
xcess of specified amounts of 5 per
of sales price in excess of speci-
ed amounts. ,
The tax on parcel post packages
eliminated effective January l.,
322.
'The new act provides that no taxi
aver shall be subjected to %unneces-
Try examinations or Investigations,
Id only n inspection of his books
accounts shall be made for a taxi
lie year unless the taxpayer request
herwise, or the commissioner mott
IS the taxpayer in writing that an
lditional inspection is necessary.
"The period for filing returns on
e calendar year basis is from jan
Try / to March IA, 1922. This year,
last, the tax may be paid in full s
the time of filing the return or in
equal installments, due on or
fore March Is, June Is, September
!, and December Is.
"Copies of the revenue act may be
d by application to this Office"