Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-10-02
ABSTRACT OF THE ANNUAL INCOME TAX
ANNUAL TAX.

come Tax. and Of the decisions by the Depart.
ment at Washington upon various questions that
nave arisen, we present the whole subject, under
Its several distinct heads:
STATEMENT SHOULD BE MADE-wHER WHEN,
N BY WHOM.
/. Tho law requires every person Of lawful age, |
residing In the United States, to render to the
Assistant Assessor Of the sub.distr.ct In which he
or she may be residing on the LIST day Of May, a
written statement, according to a prescribed
form, of the amount Of his or her income, gains
and profits during the previous year, from Jan.
uary LIST to December 3lst, both days inclusive.
A printed blank containing this form can be oh.
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
n certified copy Of such statement. to show any
other Assistant Assessor, who otherwise might
make q second assessment.
9. The statement must DO rendered on or be.
fore tho LIST day Of May, or within ten days after
q written or printed notice requiring II, has been
left at the place Of residence or Of business, or de.
posted In the pearest Post Office.
). The annual Income tax Is q personal tax,
and 1t cannot be assessed against any corporation,
company, or partnership, as such. Every indf'
viduhl 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
proats 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.
S. II any person neglects or refuses to render a
written statement, the Assistant Assessor Is re.
quested to all out q blank with such persons
name, and taxable income estimated according TO
the best information that can be obtained, and
upon this estimated income to assess the tax, and
then to add 25 per cent, to such tax as u penalty
for neglect or refusal.
6. An Assistant Assessor may be mIsled In
making this estimate, by being misinformed az to
money received, or not informed as 10 money
paid. He must assess, however, according to the
best information within his reach. The only per.
son capable Of giving absolutely correct informa.
ton ~ 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 q 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
neOus, Il Is always troublesome TO the party In.
terested A. to have IL 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 as to avoid undue tax.
| alton and troubled
7. Every statement must be verified by oath or
Affirmation. When this Ia not done, the Assistant
Assessor Is required to estimate the income and
TO add IS 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 due
information to the party interested. He Is re.
quired, also, to 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 OF MAKING UP STATEMENT OF INCOME.
By the 18th section Of the law, the Commits.
sioner Of Internal Revenue IL 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 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 ono not being allowed to Offset gains In another.
Thus q merchant who engages In farming or In
speeulations not belonging TO his legitimate busi.
ness cannot Offset gains In the one by losses In
the other.
Q. The expenses incident to each business are
deductible from the receipts OF that business.
3. Speculations iS9iimatsly belonging to any
business, and these alone. may be carried into Its
profit and loss account. Thus a broker may spec
ulate In stocks, q dry goods merchant in cotton, q
hardware man In iron, etc, and such speculation
may affect the gain and loss of such legitimate
Duslness' n mciVhhht niso ma mnAe TcS v
exchange or the kind Of money paid for his mer.
chandise. and this gain or loss belongs to his mer.
chandise account. But II he buys gold, uncurrent
money, Unitca STATES ileasury noles, eI any
ing 20 his regular business, for tho purpose, OF
speculation, the profit or loss from such specula.
ton will not be allowed to affect the profit or loss
from his regular business. A business firm
placed $4,000 In the hands Of a New York bro.
ker, instructing him TO use 1t In the purchase and
sMe OF gota, on Inen "eeouht' NY na'us ".
S27,SOp In TINS ventures, tney cisineu nav "
should De deducted rom tnslr pronts III ous'hess;
Commissioner Lewis dissiiowed the ciiuin, anu
said the tnyorm ruiins hau peeh tnnt Vhena
loss ~ made In any particular business. agains'
whien ,he5e :" 10 ssnS " a., 49,
cred a dtdd so'' z oHp'as anG.sI,ea " ."t ~ a..
ness Asa'n, "'S - ..Ra a , ~ means nnst
SaS n'ado om the aain,r
y" H. rar Jiasrsnt kinds of busine.s must be
= ~" s"nora,sIr ia sbonn bv The following
reiG,nea Tapnmissions RoIIIns: ;"
~ Ina,rrad In ,ba nros.cut,on NJ one
(al-"Loss incurred IN lIe Piosesu.ion ! u '
KIND OF business eanno, 10 aeaIe.eu IL. Sn IN ~
business OF an Tntne.y i've
saiaLy' .h.s aur.nd IN ~: ,ros.cp,io, NJ op-
~ - Srsinnss cannot he deducted from gain
g'dhe1 inn. - ahsoirts Ioss Incurred IN tbe
IN oan.n,To, ~ a sincIs bnsiness il indispensably
PoSs ~ can,,aI"
+" Lose, in merchandise can be deducted
\, f,on cain. in mercbandIse: but. In this case,
OarytcuIar Sranches OF merchandise need not be
a.sa,"J 81 In snaculatIon. the loss or gain
sepnA" won ogss, Ioss or gain from nroSnc.
snscuisted I'M"
m-"Merchants must make return Of their
Nes,. frnm mercbandIss without regard 10 their
os.os in snecnIatIon. or galns from interest, diyI.
donds rents or anv other source"
Iosses in Speculation cannot be deducted
from salaries, nor from gains In merchandise.
When losses are sustained in one speculation and