The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1865-05-25
The Income Tax.

The act of March 3, 1865 provides that
each person of lawful age ia required to
make return on or before the first day of
May, i'll such form and manner as may be
prescribed by the Commissioner of Internal
Revenue" of the amount of his or her g in
come, gains and profits" between the first
day Of January and the thirty first day of
December, 1864, inclusive. 1t would seem
from the language used in the act of March
3, 1865 that there is a penalty affixed to
refusal or neglect to use this prescribed
Storm" as well as to the otfense OF rendering
fraudulent list or return. The law is ex
pllcit that each person must not only make
a return, but must make it, g in such form
and manner as may be prescribed by the
Com missioner"
A contemporary thus states the law, Con-
gress has provided that the Assistant AS
SCISSOR may increase the amount of the in
come return of any person, g if lie has
reason to believe that the same is under
stated" and, if he thinks the return to be-
fraudulent, or wilfully false, he shut add
one hundred percemtun, as penalty to the
amount of tax ascertained 10y him to be due
Thus, the Assistant Assessor need not
impose a peualty for understatement of
amount OF income unless he thinks the
same was knowingly. and with intent to
evade payment of legal tax If any person
is dissatisfied with the decision of the
Assistant Assessor, he may appeal to tho
Assessor, aud from him to the Comnliss-
Toner. The tax act of 1865 makes no pro-
vision for any further appeal; but, of course.
nybody of whom the axcollector makes
an illegal claim, under color of law, can
protest against the payment, warn the Col
lector not to pay the money into treasury
and then sue them III the coults to recover
back the excess; and i'll this suit the courts
would pass upon tie acts of Assistant Asses
sors, Assessors aud the Commissioners.
We have alluded cases of persons making
returns on or before the first, and to those
making false retu ms There is still remain
ing the class of persons who have .fatteo to
make a return on May first. The act of
March, 1865, infiicts a penalty of additional
tax OF twenty five percentum, : in all cases
Of a0jifUE neglect or refusal to make re
turn on or before the first Monday i'll May"
but, we infer from letter of the Commits
sioper to Wilcox. an Assessor in Maine,
that the Treasury Department has decided
that neglect even after yesterday is not to be
considered to be acitttNtty." until the Ass
istant Assessor calls upon persons in default
and, an person, asks for his or her return.
In such case, the person asked must fur
nish the return at once, or he or she will be
deemed wiful!y i'll default, and liable to
the twenty five per centum penalty If on
the other hand, the person in default is not
at home, or at his or her usual place of bus.
mess, when the assistant assessor calls, then
+. ha 40
to make the return, before penalty can be
inflicted. u
If, therefore, if it be mere case of care.
less neglect, it would seem that before the
Assistant Collector can infict penalty he
must i'll person call for the delinquent at his
or her house or place of business; and if not
found, must serve a written notice, with
blank forms, and wait ten DAYS.
1t appears clear from the act of March,
1895, that the penalty of one hundred per
centum additional can only be inflicted in
case of false and fraudulent return actually
made. If anybody sees fit to neglect or re
fuse to make any return whatever, he has
legal right to do SO, but the act of Con
gress provides that in such case, the Asses
sor or Assistant Assessor shall examine
such delinquent, his books and accounts, or
any other evidence, and ascertain the
amount of his income, assess the tax there
on, and add twenty five per centum to such
tax, 8 in all cases of wifuI neglect or re
fusal. E" The law he's armed the Assessors
with ample power to compel the production
of books and papers. In the act of June 30
1864, there was a penalty of fine or lin
prisonment. at the discretion of the court
inflicted on persons refusing to answer the
interrogatories OF an Assessor, or to pro
duce such books and papers as should be
demanded.