Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-08-24
ABSTRACT OF THE ANNUAL INCOME TAX
ANNUAL INCOME TAX.

Having been requested to prepare an abstract
Of what 10 required by law In referepce to the In
come Tax, and Of the decisions by the Depart.
ment at Washington upon various questions that
have arisen, we present the whole subject unaer
its several distinct heads:
STATEMENT SHOULD BE MADE-wHERE, WHEN
N BY WHOM.
!. The law requires every person OF = age,
residing In the United States, 70 render 10 tue
Assistant Assessor of the sub.distr.ct In when no
or she may be residing on the LIST day OF aay, q
written statement, according TO q preserlgea
form. Of the amount of his or her income, gains
Snd profits during the previous year, from jan.
uary lst 10 December 3lst, both days inciuAve.
A nrinted blank containing this form can DC oD'
tajned from the Assistant Assessor. a person
having no fixed residence, should mako n state
ment wherever he or she may happen 70 %; anu,
In case Of removal TO another district, snSuia tane
other Assistant Assessor, who otherwise might
make O second assessment
o Tbe statement must DO rendered on or be-
fore the LIST day Of May, or within ten days after
a written or printed notice requiring II, has been
leh AT the place of residence or OF business, or de-
posIted In the pearest Post Office.
q The annual income tax ~ q personal tax,
and II cannot DO assessed against any corporation,
company, or partnership, as such. Every indi'
yidual member must make a statement OF his or
her share of or interest In the gains and profits OF
such company, etc, whether such gains and
profits are divided or not, and must also state
separately his or her income from all otner
sources.
EVILS OF NEGLECT TO MAKE oUT~oR VERIFY
STATEMENTS.
8 II any person neglects or refuses to render a
written statement, the Assistant Assessor Is re-
uuested to fill out q blank with such persons
name, and taxable income estimate according 10
a. 49, Mathematician that aan hnI nhtninAn. AMI
upon this estimated income to assess the tax, and
then to add IS per cent, TO such tax rs a penalty
for neglect or refusal.
G An Assistant Assessor may be misled In
making this estimate, by being misinformed AZ TO
money received, or not informed an to money
paid. He must assess, however. according 10 tne
best information within his reach. The only per.
son capable Of giving absolutely correct informa'
ton IL frequently the one who refuses or neglects
to make a statement. II such person will not
take the trouble to inform the Assistant ASSESSOR,
there IN a bar to all complaint, should the ASSESS
ment prove incorrect, and a heavier tax DO levied
than would otherwise be charged. Moreover,
after an assessment has once been made, II crro
neOus, 1t Is always troublesome to the party In
terested TO have II corrected. All persons, there
fore, but especially such as haze no taxable income,
should not fail to render the required statement,
upon the proper blank, 80 AZ to avoid undue tax
alton and trouble.
7, Every statement must be verified by oath or
affirmation. When this is not done, the Assistant
Assessor Is required to estimate the income and
TO add 25 per cent to TO the tax.
EVILS OF MAKING A FALSE STATEMENT.
9. An Assistant Assessor has power to increase
the amount In any statement, after giving due
information to the party Interested. He IL re-
quired, also, 10 add 100 per cent. TO the tax when
q false statement has been rendered and the
party making the false statement becomes liable,
not only for this additional tax. but likewise to
two distinct prosecutions before the United States
Courts-one for making a false statement with In
tent to defraud the Government, and the other
for perjury.
MANNER or MAKING UP STATEMENT OF INCOME.
BY tho llsth section Of the law, the C0mmis.
sioner Of Internal Revenue Is empowered to pre-
scribe tho form and manner In which the state.
ment Of Income must be made up. This he has
done In a printed blank used by the Assistant Az.
sdssor, and In various circulars and rulings The
following Ia n summary Of what has been pre-
scribed:
/. Each Of the great classes into which the pur.
suits Of life and the investments Of capital have
been divided must be returned separatey- losses
In one not being allowed to offset gains In another.
Thus q merchant who engages In farming or In
speculations not belonging TO bis legitimate busi'
ness cannot Offset gains In the one by losses In
the other.
deductiblc from the receipts Of that business.
3. Speculations LS9iiimdtely belonging to any
business, and these alone. may be carried into is
profit and loss account. Thus a broker may spec
ulate In stocks. a dry goods merchant In cotton, a
hardware man In iron, etc, and such speculation
may affect the gain and loss Of such Legitimate
business. A merchant also may make or lose by
exchange or the kind Of money paid for his mer'
chandlsc, and this gain or loss belongs TO his mer'
chandise account. But II he buys gold, uncurrent
| money, United States Treasury notes, or any
| other thing not one of the articles Of trade belong
Il mr. IN hia raOular huainaag- for the DuTDORe oil
speculation, the profit or loss from such specnla
ton will not be allowed TO affect the profit or los,
from his regular business. A business frH
placed $4,000 In the hands Of q New York bro
ker, Instructing him to use II In the purchase anC
| sale Of gold, on their account and having los
81, 500 In this venture, they claimed that ]
should be deducted from their profits In business
| Commissioner Lowis dIsallowed the claim, anc
| said the uniform ruling had been that when Q
loss Is made in any particular business, against
| cred a dead loss Of capital iHcested In thai bust
| ness" Again, loss Of capital cannot be de
| Quoted from income." Return Of income mus
| be made on the gains"
4. How far different kinds Of business must be
| returned separately Is shown by the following
| rulings Of Commissioner Rollins:
(a)-"Loss incurred In the prosecution Of one
| kind Of business cannot be deducted from gain In
| business Of an entirely different character, nor from
| salary, rents, dividends, etc
6I"Losses incurred IN tne psoseeu',on u ohe
ordnen OF ousnehs nh.o =. IT, ,neurrad ~ ,ha
IN anotner, n1ee M oi Snsi".H - iOSi.ponaahI,
prosecution VI nsins'o o"''"o"" " A"""p"""''
q loss OF eaplal .u. ,o ,o,-,,ad
- Losses IN hercnanuise eau 1o ueuucVcu
only from gains In merchandise; Dut, IN this case
| particular branches Of merchandise need not be
separated. So In speculation, the loss or gain
from stocks may offset loss or gain from produce
| speculated in"
(G-"MerchantS must make return Of theil
| nro6ts from merchandise without regard 10 thcii
iosses in Speculation, or gains from interest. diyi
SanSs r.nts nv any otbsr source"
WS" Iossos in :necnla,Ion cannot be deducted
from salaries. nor from gains In merchandise
Wbor iossss sre Sustained in one specuIatjon and
ssirs maSs in another specula,Ion, such iossc,
. S ha %oJrctsd from sncb gains LOSES In one
hrsycb ~ mercbandiss NAV he deducted from
UaSns n onv o,har branch M mercbandI.e"
~ bsra stocks, ctr, ara bought az n per
mSxrsr, ,nve.tmsnt and sold again merely tc
change the investment. a loss s1stained IN III,
ALE NAV he deducted from the dividends from
,~rb stoSk Rnt where Tho purchase il made for
the nurnose of selling again on speculation, the
o mU ppn.to,noJ bv ,ho ssIe cannot he deducted
rom Jiyidsnds. Int NAV he deducted from gain,
dsrIved from Tho purcEa,s and sals of stock, etc.
INCOME PROM RENTS OF BUILDINGS.