Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-09-25
OF rHB ANNUAL INCOME TAJ
N 10 INCOME TAX.

Il .... AENSOIAn IAA Il
haYlng oeen requested to prepsre an abstract
OF what Is required by law In refrrenco 20 IN. Tn
Uoms A. ue Wa "hG Of the decisions by the Depart.
have arisen. We present the vhole snhisc, nn ssas
It's several distinct heads: nuo
STATEMENT SHOULD BE hADE-wuypY uyv,
AND BY WHOM,
!. The law requires every person of Law All No..
tesialnB the United States, TO render TO the
Assistant Assessor Of the sub-distr.ct In which bs
or she may be residing on the lst day Of NAV n
written statement, according to Q prescribed
form, Of the amount of his or her income. gain,
Gnd profits during the previous year, from Jan.
uary LIST TO December 3lst, both days inclusive.
A printed blank containing this form can be OBJ.
tanned irOm the Assistant Assessor. A person
having no hxed residence, should make a state.
ment wherever he or she may happen TO be: and.
In case of removal to another district, should take
n certified copy Of such statement. to show any
other Assistant Assessor, who otherwise might
make q second assessment.
2. The statement must DO rendered on or be.
fore the LIST day Of May, or within ten days after
q written or printed notice requiring it, has been
left at the place Of residence or of business, or de.
posted In the pearcst Post Office.
3. The annual income tax Is a personal tax.
and 1t cannot be assessed against any corporation,
company, or partnership, az such. Every lndi.
vidual member must make a statement Of bis 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 other
sources.
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
STATEMENTS.
5. II any person neglects or refuses 10 render q
written statement, the Assistant Assessor Ia re.
quested TO fill out a blank with such persons
name, and taxable income estimate according to
tho best information that can be obtained, and
II tnn thta estimated tnanuna 60 aasa.y cha INV AND
then to add 25 per cent, 10 such tax as a penalty
for neglect or refusal.
6. An Assistant Assessor may be misled In
making this estimate, by being misinformed as to
money received, or not informed as TO money
paid. He must assess, however, according TO the
best information within his reach. The only per.
son capable of giving absolutely correct informa.
tion 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 is a bar to all complaint, should the Assess.
ment prove incorrect, and n heavier tax be levied
than would otherwise be charged. Moreover.
after an assessment has once been made. II errO
neous, II Is always troublesome to the party in
tcrested to have It 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, so as to avoid undue tax.
alton and troubled
| Z. 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 % per cent. to TO the tax.
EVILS OF MAKING A FALSE STATEMENT.
8. An Assistant Assessor has power TO increase
the amount In any statement, after giving duo
information to the party Interested. He Is re.
quired, also, to add 100 per cent. to the tax when
u 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
/ rnurtI-nus for mailing a fa1aa stnfauont with In.
tent to defraud the Government, and the other
for perjury.
MANNER OF MAKING UP STATEMENT OF INCOME.
By the 18th section Of the law, the Commis.
sioner Of Internal Revenue Is empowered TO pre-
scribe the 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 As.
SCISSOR, and In various circulars and rulings. The
following Is a summary Of what has been pre-.
scribed:
l. Each Of the great classes into which the pur.
suits Of life and the Investments Of capital have
been divided must be returned separately losses
In one not being allowed to Offset gains In another.
Thus u merchant who engages In farming or in
speculations not belonging to his legitimate bust.
ness cannot offset gains In the one by losses In
the other.
!. The expenses incident to each business -rs
deducti6le from the receipts Of that business.
3. Speculations hgitimdtely belonging TO any
business, and these alone. may be carried into Its
| profit and loss account. Thus a broker may spec.
ulato in stocks, a dry goods merchant In cotton, u
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.
chandlse, and this gain or loss belongs to bis 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.
Ing to his regular business, for the purpose OF
speculation, the profit or loss from such speculs.
ton will not be allowed to affect the profit or loss
from his regular business. A business firm
placed 10000 In the hands Of q New York bro.
ker, inStructing him to use II In the purchase and
sale Of gold. on their account and having lost
S27, 800 In this venture, they claimed that 1t
should be deducted from their profits In business.
Commissioner Lewis dlsallowed the claim, and
said the uniform ruling had been that when q
loss Is made In any particular business, against
which there are no gains to Offset, Il IL consid.
cred a dead loss Of capital inrssted In that bnst.
ness Again, "loss OF capital cannot be de-
Quoted from income" Return Of income must
be made on the Hdins."
4. How far different, kinds Of business must be
| returned separately Il 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 IN entirely dfrenteharaeter, nor from
salary, rents, dividends, ETC."
b)-"Losses incurred In the prosecution OF one
| branch Of business cannot be deducted from gain
In another, since an absolute loss Incurred In the
prosecution Of n single business liz iudlspensably
M-"Iosss, in merchandise can be deducted
orSy from Gains In merchandI,e INT In mi. cas-
nar,,cnIar Srancbes on msrcbandIse need no, bs
ssnsrated 10 in spseuIatIop. The loss or gain
Sram s,octs NAV ofs,t loss or gain from nrodncs
.nscrIated IN ~
fS""W.rcbants mus, max, return Of THAR
nroa,, from msrchandiss wi,hop, regard N thar
p "s..s "u or c.,ns TON ,n,arost ALL.
MSs - ~ ~ anu ntbsr sonrc."
ae TSH,"Ios.s ~. IN IN :necnia,ion canno, bo d.due,.d
| from saIaries nor from gains In merchandise
W., i"ssas a. rs,ain. IN ora snscrIo,ton ard
rains maSe in ono,Ssr snacuiation, snch Loose.
nav ba Abducted from spch gains Iossa, IN one
hrancb of mercbandIse NAV he deducted from
oa,ns IN o,bsr hranch nj msrchan6jss
~n"aWbsrs s,ocLs etc are bopobt n, n nsr.
Uu, ,nys.tmsnt and ,oId AGAIN merely 20
ohnna. ,ha innas,m.nt n To-. .ns,a;rsd In The
SnnnsV ~ y. s.5na,oJ sar, ,bo d,uidand. 80
say s,oS. Rn, whsr. tSs nnrcbsss ~ made for
tbe nurno,e Of selling again ON Speculation. the
loss sustained by the sale cannot be deducted
aSN1