Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-09-08
ABSTRACT OF THE ANNUAL INCOME IA,
ANNUAL TNCOMET.X

/ . - ..T..r.r# ~
nnvihg Deen requested to prepare an abstract
OF what Is required by law In reference to tho In
come Tax, and Of the decision, nv IN. Danar
ment at Washington upon variou, Question d.,
have arisen, we present the whole subiert md
its several distinct heads:
STATEMENT SHOULD DE mADE-wHEnY, wuys.
AND BY WHOM.
i. The law requires every person of lawful age,
residing in the United States. to render to IN.
Assistant Assessor of the sub.distr:ct In which no
or she may be residing on the LIST day of May, u
written statement, according to a prescribed
| form, of the amount Of his or her income, gains
snd profits during the previous year, from Jan
uary 1st to December 3lst, both days inclusive.
A printed blank containing this form can be OBJ.
tanned from the Assistant Assessor. A person
having no fixed residence. should make a state
ment wherever he or she may happen TO be; and,
In case of removal to another district, should take
a certified copy Of such statement. to show any
other Assistant Assessor, who otnerwlse might
make Il second assessment
9, The statement must be rendered on or be-
fore the LIST day OF May, or within ten days after
a written or printed notice requiring It, has been
left at the place of residence or Of business, or de-
posted in the pearest Post Office.
3. The annual income tax ~ u personal tax,
and Il cannot be assessed against any corporation,
| company, or partnership, IN such. Every ind.
vidual member must make n statement OF MS or
her share Of or interest In the gains and prOhts OF
such company, etc, whether such gains ana
profits are divided or not, and must also state
separately his or her income from all other
sources.
EVILS OF NEGLECT To lake OUT OR VERIFY
STATEMENTS.
5. If any person neglects or refuses to render Is
written statement, the Assistant Assessor IL re-.
questod to dill out a blank with such persons
name, and taxable income estimated according TO
the best nformhtiO that can be obtained, and
upon this estimated income to ASSESS the tax, and
then to add 25 per cent, to such tax IN a penalty
for neglect or refusal.
6. An Assistant Assessor may be misled in
making this estimate, by being misinformed IN 10
money received, or not informed HI 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 neglccts
to make "a statement. II such person will not
take the trouble to inform the Assistant Assessor,
there Is n bar to all complaint, should the assess.
ment prove incorrect, and q heavier tax be levied
than would otherwise be charged. Moreover,
after an assessment has once been made, II errO
ncOuS, II II always troublesome to the party in.
tercsted to have 1t corrected. All persons. there.
fore, but especially such as haze no taIdbie income,
should not fail TO render the required statement,
upon the proper blank, NO IN TO avoid undue tax.
alton and troubled
7. Every statement must be verified by oath or
affirmation. When this Is not done. the Assistant
" 10 NNle"NN
to add - 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 du"
information 10 the party Interested. He II re-
quired, also, TO add 100 per cent. TO the tax when
a 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-Onc for making IA false statement with in
/ tut,F 10 InfranI th. HnyaFumant and the other
for perjury.
MANNER OF MAKING UP STATEMENT OF INCOME.
by the llsth section Of the law. the Commits.
sioner of Internal Revenue IL empowered TO pre-.
scribe the form and manner In which the state.
ment Of income must DO made up. This lie has
done in II printed blank used by the Assistant As.
SCISSOR, and in various circulars and rulings. The
following Is n summary Of what has been pre-.
Icribcd:
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 q 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 re
deductIble from the receipts Of that business.
3. Speculations t~egiimdteiy belonging to any
business, and thtsc alone, may be carried into It's
profit and loss account. Thus a broker may spec.
ulsNV III Ht'NNH ~ e. NV hhNa huii Ah ~ ~
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'
chandisc, and this gain or loss belongs to bis mer.
chandiSe account But II he buys gold uncurrent
money. uhited s'ates treasury notes. or any
other thing not one of the articles OF trade belong.
ing 10 his regular business Tor the purpose OF
speculation, tue Proht or loss from Such specuih-
ton VIII not De allowed 10 ahect the pron' or loss
from his regular business. a business firm
placed S4o,OVo III the hands OF q New YORK bro.
ker, instructing him 10 use II IN the purchase and
sale of gold, on their account; and having lost
S27, 500 In this venture, they claimed that II
should be deducted from their PROFITS In business;
commissioner Lewis dlSulowed tue cIaim, ana
sSiu the ung9T" IuhnB a oeen 'h"' ~ q
loss ~ maui III any Pai'euIai ouhmeSn, "6nns'
which mere are 10 snhs y onsS'; IL seohsIu'
ereu u dead toss Y enPHas '"eested !" hat oNs''
ness. Again. loss OF capltal cannot DC de'
Quoted from income. Return OF income must
be made on the gains.
4. How far different Kinds OF business must be
returned separately Is shown by the following
rulings OF commissioner RolinS;
(G)-"Loss incurred In the prosecution OF one
kind Of business cannot be deducted from gain In
business Of an entireiy dIerentehdrdeteT, nor from
salary. rents dividends; etc
- Losses incurred IN ,he prosecution OF on"
0raRch OF business c'iho, oe ucuuc'cu from gam
In another SINCE an aosolu'e ioSs incurred in rue
PLoseeuti"n a, S"S' "''''' " ""''PH'"o'S
aloss OF capital
o. Losses IN merchhnGiSe can Vc Geuuc'eu
only from gains IN merehaiGisc Du', IN lhls case
particular oreheheSo =" !, Nv. w
separated. 30 IN speeulhtion, 'he Ioss " gun
ron stocks may offset 'oss OF gam ITO" produce
speeuiatea H.
G-"Merchants must make return OF their
profits IRON merchandise without regard 10 tnelr
losses in speculation or gains from interest," diVi'
dends, rents, or any other source
Losses In speculation canhot oeueduGted
from salaries nor from gains IN merchandise;
When losses arc sustained IN OH, Sp"cun mnh inS ~.
gains Hhu% IN sH oomo cain. "un :, o"o
may DC usaueteI mn s"uu S" hn daJn",aI ~ hs"n,
oranch Oh neieu"nuise hirJ W y w"
gains ID any otheI oLAhcn o meIomnnnu.se.
%. mere s.o.Ns, cue, ~ oo"su, as q per,
maheht inVes'nen'' w "pu aS".n 49, tLs ~
cnangc Ine n.e " y, ~. IIr IN ~ -
sale may DC neauy.eu uUm - NV u ~ u'muS Sn
4. S.1un 90 sa,iInn ocatp on sneorIa,Inn w.
~" Puapoo,"aJ "a, .ha H. .an,ot ha HaJ,o, ~
Spom JivIdnnds Int NAV be deducted from nains
derived from the purchase and sal, OF stock etc.
INCOME FROM RENTS of