Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-06-18
ABSTRACT OF THE ANNUAL INCOME TAX
ANNUAL INCOME TAX.

Having been requested 10 prepare an Abstract
Of what Is required BY law In reference to the In
como Tax, and Of the decisions BY the Depart.
ment at Washington upon various questons that
have arisen, we present the whole subject, under
its several distinct heads: 1ETCrEW
STATEMENT SHOULD BIZ MADE--wHERE, WHEN,
AND by WHOM.
!. The law requires every person oflawful age,
residing In the United States, TO render TO the
Assistant Assessor ofthe sub-district in which Ne
or she may DO residing on tho lst day Of May, a
written statement, according to q prescribed
form, Of the amount Of his or her income, gains
and profits during the previous year, from jan
uary LIST to December 3lst, DO b days inclusive.
A printed blank containing this form can BIO OBJ.
talned from the Assistant Assessor. A person
having no fixed residence, should mako q 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 n second assessment.
/ 2. TIT statement must DO rendered on or be.
fore the LIST day Of May, or within ten days after
a written or printed notice requiring 1t, has been
left at the place Of residence or Of business, or do.
posted In the pearest Post Office.
3. The annual income tax Is q personal tax,
and It cannot be assessed against any corporation,
company, or partnership, Us such. Every indl.
yidual member must make q statement Of bis or
her share Of or interest In the gains and profits Of
Hucn company, etc, wnOtner Bucn gains ana
profits arc divided or not, and must also stnte
separately his or her income from all other
sources.
EVILS OF HE0LEcT TO MAKE OUT or VERIFY
STATEMENTS. b
s II any person neglects or refuses TO render a
written statement, the Assistant Assessor Is re-
quested to AIl out a 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 IS per cent, TO such tax ms a penalty
for neglect or refusal.
6. An Assistant Assessor may be mlsled In
making this estimate, by being misinformed rs 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'
ton Is frequently the one who refuses or neglecti
to make n statement. II such person win not
take the trouble TO inform the Assistant Assessor,
there IL q bar to all complaint, should the assess.
ment prove incorrect, and q heavier tax be levied
than would otherwise DO charged. Moreover,
after an assessment has once been made, II erro
neous. It Is always troublesome to the purity In.
terested 10 have It corrected. All persons, there.
fore, but especially such as hare no taxable income,
should not fail to render the required statement,
upon the proper blank, 30 az 10 avoid undue tax
alton and trouble.
z. Every statement must be verified by oath or
Affirmation. When this Is not done, the Assistant
AbbobbOT - EOQuuCu W ihua ~ hto
to add 25 per cent to TO the tax.
EVILS OF AK 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 Is 70.
quIred, also, TO add 100 per cent. TO the tax when
q false statement has been rendered and the
party making tho false statement becomes liable,
not only for this additional tax. but likewise 10
two distinct prosecutions before the United States
C~ourts-one for making a false statement with In.
tent to defraud tho Government, and the other
for perjury.
MANNER OF MAKING UP STATEMENT OF INCOME.
BY the 18th section Of the law, the Commits.
sionar Of Internal Revenue Is empowered to pre-.
scribe the form and manner In which tho state.
ment Of income must be made'up. This he has
done In q printed blank used by the Assistant As.
SCISSOR, and In vnnous circulars and rulingS The
following Is q summary Of what hns been pro
scribed:
/. 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
speculatlons not belonging to his legitimate busl
ness cannot Offset gains In the ono by losses In
the other.
Q The expenses incident to each business are
deductlble from the receipts Of that business.
3. Speculations l~SStimatciy' belonging to any
business, and these alone. may be carried into Ia
profit and loss account. Thus q broker may spec
ulate in stocks, u dry goods merchant In cotton, q
hardware man In Iron, etc., and sHch speculation
NAV affect the gdin and loas Of such Legitimate
hn:Insss A merchant also NAV mako or lose BY
sIchang. or tbe hind of money maid for his mer
ehnndise, and this gain or loss belongs 10 his mer
| chandIse account. But II he buys gold, uncurren'
money, United States Treasury notes, or any
| other thing not ono Of the articles Of trade belong
Inc 10 Ma regular business, for the purpose o
speculation, the profit or loss from such specula
| ton will not be allowed to affect the profit or los
from his regular business. A business firm
placed 500 0 In the hands Of o New York bro
| ker, lnstructlng him 10 use II In the purchase ant
sale Of gold, on their account; and having los
s27, 500 In this venture, they claimed that |
| shouldbe deducted from their profits in business
| Commissioner Lewis dlsallowed the claim, ant
said the Eaiform ruling had been that ~ hen
loss Is made In any particular business, agains
which there aro no gains 10 Offset. II is consid
cred a dead loss cf capital injected IN hdt onsi
ness." Again, loss Of capital cannot BIO de
Quoted from income Return OF income mus
be made on the Katns.' -.
4. How far different kinds OF business must u
returned separately Is shown by the following
rullngs Of Commissions KoEins:
@l-"Loss incurred IN the prosecutor Oh ON
kind Of business cannot be deducted from gain 81
business Of an entirely dDerentehdrdeter. nor from
salary, rents, dividends. ETC.
8)-"Losses incurred In the prosecution OF one
branch Of business cannot be deducted from gair
In another, since ON absolute loss incurred N tht
prosecution OF asingle business IL indlspensaoiS
q loss Of capital"
only from gains IN meTcnandisei put. IN tnls case
particular branches OF merehanolse need NOT o.
separated. 80 In speculation, the loss or gar
from stocks may Offset loss or gIdn from produce
.speculated In" :
n.SA,. tnom msrchandI.o without regard IN tbei,