Delaware gazette. [volume] (Delaware, Ohio) 1855-1886, 1865-02-10
INTERNAL REvENuE-INenMEs.

The Internal Revenue Law prescribes sthat
there shall be levied, collected, and paid annu-
ally upon the annual gains. Pro1lts or income
OF every person residing in the United States,
&C., whether derived from any kind Of pro-
perty, rents, interests, dividends, salaries, or
from any profession, trade, employment, or
vocation, &c." duty OF five per centum on
the excess over 5000, and not exceeding 5000;
seven and a half per eentum on the excess
over $4,000, and not exceeding $4,000 and
! ten per centum on the excess over $4,000
And the duty is to be assessed and collected
| on each year ending on the 3lst day of De-
cember.
As the year 1864 is ended. it would be well
for all persons having transacted business with
in the year, to make careful estimates of their
gains, profits or income, and make memOrsn-
DUN of the same, 10 be preserved until they
may have opportunity to report to the Assist
ant Assessor of their Division who will aid
them in making the proper deductions, and
take their sworn statements of the taxable
amounts.
We propose, in this connection, to make a
few general remarks and suggestions, that may
be of service to some OF our readers in aiding
ments of the law and to prepare their re-
ports. First, then, the term "gains," in the
law, appears to apply to farmers, and other
producers profits" to merchants, traders and
manufacturers; and "income" 10 persons
drawing salaries, receiving fees, or deriving
dividends from capital invested &c
A farmer is required to include the whole
gross proceeds of the year., whether consumed
by his family, sold, or had on hands for sale at
the end Of the year.
A merchant, or trader, or manufacturer,
will estimate the increase or gains of his busi-
ness over and beyond the original cost ofstOck
and carriage of the same.
Whilst salaried persons, or persons deriving
income from capital invested, fees, &C., should
estimate the whole amount.
I'd. 1t happens, in some instances, that the
same persons derive gains, profit, or income,
from two or more kinds of business and in
such cases, they should report all Of their
gains combined, as fully as if they had but
one source Of revenue.
Sd. A very common mistake Of persons is
that they are entitled to deduct from their in
come the expenses Of keeping their families,
whatever that may amount to and in addi-
tion TO that, to deduct 5000, whereas in fact,
they are only allowed to deduct 5000, what
ever the family living may be.
4th. Another mistake though not very
common, is the idea that the estimate Of the
income should be based upon gold standard.
The basis is currency; and the payment of
the tax is also in currency.
Although the law emily specifically exempts
$500 it provides that the Secretary Of the
Treasury shall establish such regulations as
may be necessary for the assessment and collec-
tion of the tax, if not provided for in the law
that may be exempted from the gross receipts
in estimating the annual income.
For illustration, a farmer is required to re-
port the gross receipts of his business, wheth-
er consumed by his family. sold, or had on
hand for sale al the end of the year, but he is
not required to report such grain, hay, &C., as
be has Oh hand for the support Of his stock
and which he actually feeds to them.
He is entitled to deduct the amount paid by
him for hired labor, including the subsistence
of the laborers F.; necessary repairs on bis farm,
insurance, interest on membranes on his farm,
aud taxes, State and National, for the year.
A merchant or trader is allowed to deduct
clerk hire, taxes. insurance, rent actually paid,
and interest on membranes upon his pro.
perty, &c.
In conclusion, we may remark that the In
structions of the Secretary of the Treasury
reqaire that all the different kinds Of income |
be reported separately, and in detail and aIso |
that each item of exemption, above referred
to, be given in detail SO that it will be well |
for each person who has income to report, to |
be prepared to present the items to the Assist
ant Assessor of his Division and seek his aid /
in arriving at the proper amount to be re-
ported.
Great frauds are known to have been perpC-
trated by many persons, in reporting their tax
able incomes, heretofore, especially in cities (;
and all persons may hereafter expect to be
held to pretty rigid scrutiny in this behalf
Honest men, however, need not fear the result.
Clinton Republican.