Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-06-13
OF THE ANNUAL INCOME TAX.
TANNUAL ~INC0MRTTAx.

come Tar, and Of the decislonS by the Depart.
ment at Washington upon various questions that
have arisen. we present the whole subject, under
is several distinct heads 1a
STATEMENT SHOULD 81 MADE-.wHERr' WHEN,
n BY WHOM. ~
!. The law requires every person oflawfnl age,
r siding In the United States, 10 render TO the
Assistant Assessor Of the sub.dlstrict In which ho
or she may be residing on the, LIST day Q fAay,a
written statement, according to o prescribed
form, Of the amount Of his or her income. gains
and profits during tho previous year, from jan
uary LIST 10 December 3lst, DO b days inclusive.
A printed blank containing this form can be OBJ.
taIned from the Assistant Assessor. "A persf
having no hxed residence, should mako Q stat .
ment wherever he or she may happen TO be; an ,
In case of removal TO another diatrict, should tai 9
q certified copy Of such statement TO show ar
other Assistant ASSESSOR, who othefwise migit
make O second assessment ,-EL,
q The statement must be rendered on or b.
fore the LIST day of May, or within ten days after
n written or printed notice requiring IL, has been
let at the place Of residence or Of business, or de.
posted In the resrest Post Office.
L. 3. The anuual income tax Is o personal TAX
and Il cannot be assessed against any corporation,
company, or partnership, as such Every lndL
yIdual member must make q 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 other
sources.
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
STATEMENTS.
5 II any person negleets or refuses to render q
written statement, the Assistant Assessor Is re-
quested TO ill out o blank with such persons
name, and taxable income estimateda according 10
the best information that can BIO obtained, and
upon this estimated income to assess the tax, and
then to add 25 per cent, 10 such tax rs q penalty
for neglect or refusal.
9. An Assistant Assessor may DO misled In
making this estimate, by being mlsinformed rs to
money received, or not Informed as to money
paid. he must assess, however, according 10 the
best Information within his reach. The only per.
son capable OF giving absolutely correct lnforma.
ton Is frequently the one who refuses or neKlects
10 make a statement. II such person will not
take tho trouble totnform the Assistant Assessor,
there Is o bar to oil complaint, should the assess.
ment provo incorrect, and q heavier tax be levied
than would otherwise DO charged, Moreover.
after an assessment has once been made, II erro
neOus, II Is always troublesome to the party in.
terested TO have it corrected. All persons. there.
fore, but especially sueh az haze no taxable income.
should not FALL to render tho required statement,
upon the proper blank, 30 rs TO avoid undue tax
alton and trouble.
Z. Every statement must be verified by oath or
affirmation. When this Is not done, tho Assistant
Assessor is required to estimate tho income and
to add 25 per cent. to to the tax
EVILS OF MAKING A FALSE STATEMENT.
0. An Assistant Assessor has power to inereass
the amount In any statement, after giving due
information TO the party interested. He Is re.
quIred, also, 10 add 100 per cent. to the tax when
o 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
Manner o. MAKING UP STATEMENT OF INCOME.
BY the l1sth section Of the law, the Commits.
sioner Of Internal Revenue 10 empowered TO pre-.
scribe the form and manner In which the state
ment OF income must DO made up. This he has
done In o printed blank used by tho Assistant As.
SCISSOR, and In various circulars and rulings. The
following Is a summary Of what has been pre-
scribed: rm q
/. Each Of the great classes into which the pur.
suits Of life and tho Investments Of capital have
been divided must be returned separdtely- 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.
,. SpeculatIons kSitimattly belonging to any
business. and these nlonc. may be carried into Its
profit and loss account, Thus a broker may spec.
ulate In stocks, 4 dry goods merchant IN cotton, a
hardware man In iron, etc, and such speculation
| may AueCL Inc gam huu tOSS u buCH lcBtluhtS
business. A merchant also may mako or lose by
exchange or the kind Of money paid for his mer
chandise, and this gain or loss belongs 10 his mer.
chandlse 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 specula.
ton will pot be allowed TO affect the profit or loss
from bis regular business. A business firm
placed $4,000 In the hands Of q New York bro.
ker, lnst.ucting him to use II In the purchase and
salo 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 disallowed the claim. and
said tho uniform ruling had been that ~ hen a
loss 10 made In any particular business, against
which there are no gains 10 Offset, II II cOnsid'
cred a dead loss Of capital fHuestsd IN thar bHsi,
ness." Again. 'loss OF capital cannot be de-
Quoted from income, Return Of income must
be made on the 4diHs." afh'II'Ty
4. How far different kinds Of business must be
returned separately Is shown by the following
rulings Of Commissioner Rollins:
(dl-'Loss Incurred In the prosecution OF one
kind Of business cannot be deducted from gain In
business Of an entirely dWreHtehordetsr, nor from
salary. rents, dividends, etc ..
(6-"Losses incurred In the prosecution Of one
branch Of business cannot be deducted from gain
Ia another, since IN absolute loss incurred In the
prosecution Of q single business IL lndispeusably
4 loss OF capital"
(e)-"Losses In merchandise can be deduct 4
only from gains In merchandise; but. In this cas E,
particular branches Of merchandise need not 6
separated. 50 In speculation, tho loss or ga u
from stocks may Offset loss or gain from produ' e
speculated In .#r IVY
(d-"Merchants must mako return Of their
profits from merchandise without regard to their
losses In speculation, or galns from interest. diyi.
dends, rents. or any other source"
&)-"Losses In speculation cannot be deducted
- H.