Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-09-29
ABSTRACT OF THE ANNUAL INCOME TAX
ANNUAL INCOME TAX.

ANNUAL INCOME TAX.
Having been requested TO pr,paro nj, sh,,r,.,
Of what Is required by law In reference TO thn In
come Tax, and of the decisions by the Depart.
ment at Warrington upon VARIOUS Questions tina,
have arisen. we present the whole subject, under
Its several distinct heads:
STATEMENT SHOULD DE M~ADE-wHERE. wuyN
AND BY WHO ~
!. The law requires every person oflawful age.
residing In the United States, to render 10 tha |
Assistant Assessor Of the sub.dlstr.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
end profits during the previous year, from Jan.
uary LIST to December 3lst, both days inclusive.
A printed blank containing this form can be oh.
tained from the Assistant Assessor. A person
having no fixed residence, should make q 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 otherwise might
make q second assessment.
9, The statement must DO rendered on or be.
fore the LIST day Of May, or within ten days after
left at the place Of residence or Of business, or de.
posted In the pearest Post ONCE.
3, Tho annual income tax Ia q personal tax,
and It cannot be assessed against any corporation,
company, or partnership, ~ such. Every indi.
vidual member must make q statement Of bis or
QeT HnAIo Oh OF luttICbb III tuo kdlub w PEOutb VI
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 MAXI OUT OR VERIFY
STATEMENTS
5. If any person neglects or refuses TO render q
written statement, the Assistant Assessor Is re-
quested TO ill out q blank with such persons
name, and taxable income estimate 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 IN q 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 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 neglects
TO make q statement. II such person will not
take the trouble to inform the Assistant Assessor,
there is Il 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, II Ia always troublesome to the party In.
teresied TO have II corrected. All persons, there.
fore, but especially sueA az haue no taxable income,
should not fall to render the required statement,
| upon the proper blank, 30 as to avoid undue tax
alton and troubled
7. Every statement must be verified by oath or
Il dITN0llOU. " utu III " " uOnpt hhV hAhk
| Assessor Is required to estimate the income and
to add 25 pcr cent. to 10 the tax.
EVILS OF MAKING 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 re.
Quired, also, to add 100 per cent. to the tax when
y 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 II false statement with In.
tent to defraud the Government, 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 Ia empowered TO pre-.
scribe the form and manner In which the state.
ment Of income must be made up. This be 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:
|. Each Of the great classes into which the pur
suits Of life and the investments of capital have
been divided must be returned sepdrdteiy- losses
in ono not being allowed to Offset gains In another.
Thus q merchant who engages in farming or in
spcculatlons not belonging to his legitimate busl.
ness cannot offset gains In the one by losses In
the other.
. The expenses incident TO each business are
deductiblc from the receipts Of that business.
3. Speculatlons iSgiffmdiely belonging TO any
business. and these alone. may be carried into Its
profit and loss account. Thus q broker may spec.
ulate In stocks, a dry goods merchant In cotton, a
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.
chandise, and this gain or loss belongs 10 his mer.
chandlsc 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
~ - L.. f--z. .-l -..1a
ton will not be allowed TO affect the profit or loss
from his regular business. A business firm
placed S40,O 600 In the hands Of a New York bro.
ker, Instructing him to use II In the purchase and
sale OF gold, on their account; and having lost
s27 500 In this venture, they claimed that Il
should be deducted from their profits In business.
Commissioner Lewis disallowed the claim, and
said the uniform ruling had been that when a
loss IL made in any particular business, against
which there are no gains TO offset, 1t Is consid'
cred q dead loss Of capital fnrestsd in that bust.
ness" Again, loss Of capital cannot be 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 Rollins:
a)-"Loss incurred In the prosecution Of one
kind Of business cannot be deducted from gain in
business Of an entirely dGve1te~ character, nor from
salary, rents, dividends, ETC."
0)-"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 IL indispensably
q loss of capital"
G)-"Losses In merchandise can be deducted
only from gains In merchandise; but, In this case
particular branches Of merchandise need not b.
separated. So in speculation, the loss or gair
from stocks may offset loss or gain from produc,
speculated In"
N-"Merchants must make return Of theil
IL AWnEI 81 hnIF
losses In speculation, or gains from interest. diVi
bends, rents, or any other source"
(e)-"Losses In speculation cannot be deducted
from salaries, nor from gains In merchandise.
When losses are sustained in one speculation and
gains made In another speculation, such losses
NAV be deducted from such gains Losses In one
branch Of merchandise may be deducted from
gains in any other branch Of merchandise"
(0-"where stocks, etc, are bought as a per.
manent Investment, and sold again merely 10
change the Investment, q loss sustained In the
sale may be deducted from the dividends from
such stock. But where the purchase In made for
the purpose Of selling again on speculation, the
loss sustained by The sale cannot be deducted
from dividends. but may be deducted from gains
derived from the purchase and sdih OF stock, ETC.,
in the same year"
INCOME YRoM Rents OF BUILDINGS .
From the total amount Of such rents received
within the year for which income Is estimated. or
due and collectsble on the 3lst day Of December
Of said year, should be deducted
LIST. The amount paid or due. by the owner, for
repairs made within the year, not exceeding the
yearly average paid out for such purposes for the
preceding five years, and not including any
amounts paid or due for new structures, or for
new and permanent improvements. ,
ID. Insurance for the year paid by the owner
upon the buildings rented or offered for rent, not
including insurance paid upon any other prop.
erty, real or personal.
Sd. Interest which accrued for the year on In.