The Glasgow courier. [volume] (Glasgow, Mont.) 1913-current, 1922-01-13

visions Of the revenue act of lsZl
which specifically repeats proceeding
laws, materially changes Or eliminates
many Of the provisions Of the III
law. and contains a number OF new
provisions Of importance. Revised
regulations and forms for returns are
now being prepared and therefore thss
article insofar an it refers to the ap-
picstion Of the new act TO returns for
1921 must necessarily be subject 70
the official interpretations to be given
in the new regulations. The purpose
Of this article IN 10 give a-general re-
sumo Of the new law and IN particu-
lar TO discuss the practical aspects Ut
some Of the more important provisions
70 that the taxpayers may avoid er-
fors in the preparation Of their re-
turns and later difficulties with the
Bureau Of Internal Revenue. The new
act became effective November 23rd,
1921, "unless otherwise provided for"
exceptions, among others, icing the
exces profits tax repeal, the elinin-
0ttCH. VI SbTLAA In@"* ~Dp'~ " pS'
cent, all Of which are effective az u
January J., 1922.
Tax Rates
The individual income and EDrtaz
rates for thr calendar year 1927 are
unchanged, the normal income tai
rate being 4 percent IN the first $4,000
. - ,, - 1YrH.. IF YgEyEHY.l
exemptions, and 4 percent IN the a.
mount " such net income IN ezcshs u
$4,000. The sprtaZ rates range from
percent On the amount .! net m
come betuecn 5000 and $1,000 n 50
percent If the amount VI net ncpms IN
excess Of 81, 900. The rates fbr m
come and excess profits tazeg on cDr-
pDra,ionH for the calendar year 1871
are unchanged, the income tax beng
10 percent on the amount If net in
come in excess Of the $1,000 exemption,
(czcept that in the Gaze of corpora
tons whose income IL more than &2j,-
600, this exemption Is dcnicd), and
the excess profits tax rates being ~
tsEifNb vi tii' 1t''bI WI H'b
In excess of the czces profits tax
credit, Il. g., Ii specific exemption Of
$4,000 plus an amount equal n = per
cent If the invested capital for the
taxable year,, and not in excess Of 20
percent Of the invested capital; and 40
percent If the amount Of net income in
excess Of 20 percent Of the invested
capital. A special provision IN made
in the case Of corporation net income
in excess Of $4,000 derived from any
government contract made between
April 6, 1917 and November II, 1913.
Exemptions
Exemptions allowed in the case Of
individuals are AZ follows: Single per
sons, and married persons not living
with husband or wife, $1,000; non
resident aliens $1,000; married person.
living with husband or wife and hcads
Of families $500, unless the net in
come IL in excess Of $4,000, in which
the personal exemption is only
$1,000; married persons and heads Of
families are allowed an additional cx-
cmption for each dependent. The act
provides that in no case shall the re-
duction Of the personal exemption
from $25O0 to $1,000 operate to in
G the tax which would be pay
able If the exemption were $500 by
more than the amount Of net income
in excess Of $4,000. This IL to over
come the disparity in the case of two
taxpayers, one OF whom il just with.
in the lower $4,000 exemption and the
other just within the higher $500
exemption. The $4,000 exemption here.
toforc allowed corporation will now
apply only to corporations whose mel
income is $4,000 or less; but if tn,
net income is over $25 1000 the denia'
of the $4,000 credit shall not operate u
increase the tax, payable il such crcdi,
were allowed, by more than the net
income in excess Of $25, 900.
Returns
Persons who must make returns ar,
as follows: (1) Every individual who's,
net income exceeds the exemptions al
lowed, excepting that allowed for de
p%endents; (2) every individual who's,
gross income exceeds $4,000, regard
less Of net income; CD every fiduciary
Except IA receiver appointed by au
thority Of law in possession of par
only Of the property of an individual
and individuals whose personal exemp
tions relieve the fiduciary Of liabilit,
for RETURN; az every partnership
90 every corporation Except corpor
ations specifically cxcmpted) ; and C.,
personal service corporations. In gen
eral, all individuals, corporations, ant
partnerships, in whatever capacit,
acting. making payments to other in
dividuals, corporation, or partnership.
OF $1,000 or nor in any taxable yea
are crQuired TO make information re
turns in regard to such payments
specifying the amounts, and giving
the names and addresses Of the recipi
ents Of such payments. Such return.
Of payments of interest on corpora,
tons obligations and collections Of
foreign items may be required regard
less Of amount.
Returns must be made under oatl
and must be filed within two month,
and fifteen days after the close Of tn
taxable year in the office Of the col
lector for the district in which tn,
Taxpayers residence or principal place
of business is located, and return,
MAZDA or A. c1nlun ,:. 80.