Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-09-05
ABSTRACT OF THE ANNUAL INCOME TAX
ANNUAL INCOME TAX.

Having been requested to prepare an abstract
of what Is required by law In reference to the In
come Tax, and Of the decisions by the Depart.
mont ut Washington upon various questions that
have arisen, we present the whole subject, under
Its several distinct heads:
STATEMENT sHoULD BE MADE--wHERE, WHEN,
AND BY WHOM.
!. The law requires every person Of lawful age,
residing In the United States. to render to tho
Assistant Assessor Of the sub.dlstr.ct In which h0
or she may be residing on the lst 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.
nary lat 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.
mept wherever he or she may happen to DO; and,
In case Of removal to another district, should axe
a certified copy Of such statement to show any
other Assistant Assessor, who otherwise might
make a second assessment.
Q The abatement must be rendered on or be.
fore the lst dny Of May, or within ten days after
a written or printed notice requiring 1t, has been
let at the place Of Residence or OF business, or de-
posted In tho pearest Post Office.
4, The annual income tax Is a personal tax,
and II cannot be assessed against any corporation,
company, or partnership, a. such. Every indi.
yidual member must make u 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 bis or her income from all other
sources.
EVILS OF NEGLECT TO IAN OUT OR VERIFY
STATEMENTS.
5. II any person neglects or refuses to render a
written statement, the Assistant Assessor IL re-
1uested to fill out a blank with such persons
name, and taxable income estimated according to
the best information that can be obtained, and
rDop tbiu estimated inrnma IN uaapsa the fuN. and
then to add % per cent, 10 such tax as a penalty
for neglect or refusal.
6. An Assistant Assessor may be misled in
making this estimate, by being misinformed RI to
money received, or not informed az 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
10 make a statement. II such person will not
take the trouble to inform the Assistant Assessor,
there IL q bar TO all complaint, should the assess.
ment prove Incorrect, and a heavier tax be levied
than would otherwise be charged. Moreover,
after an assessment has once been made, II errO
neous, II IL always troublesome to the party In.
terested TO have IL corrected. All persons. there.
fore, but especially such as hare no taxable income,
should not fall to render the required statement,
upon the proper blank, 10 IN to avoid undue tax.
alton and troubled
7. Every statement must bc verified by oath or
affirmation. When this IL not done, the Assistant
Assessor il required to estimate the income and
| TO add 25 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 due
| information TO the party interested. lie IN 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
/ ~. 80. g.. r,aIsn. IA A. Et aEn - with tn.
| 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 the form and manner in which the state.
| ment Of income must be made up. This he has
done In q printed blank used by the Assistant Az
| SCISSOR. and In various circulars and rulings. The
following Is u 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 hav'
been divided must be returned separately losse
In one not being allowed to offset gains In another
| Thus u merchant who engages In farming or Ii
speculations not belonging to his legitimate bust
ness cannot Offset gains In the one by losses il
the other.
. The expenses incident to each business .r,
deductible from the receipts Of that business.
3. Speculations k9itimateiy belonging TO an!
business. and these alone, may be carried into IL
profit and loss account. Thus a broker may spec
ulate In stocks, u dry goods merchant in cotton,
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 b,
exchange or the kind Of money paid for his mer
chandIse, and this gain or loss belongs TO his mer
chandlse account. But II he buys gold uncurrcn
money, United States Treasury notes, or an!
other thing not one Of the articles Of trade belong
ing 10 his regular business, for the purpose o
~ ..rAAt ~ lnas frNyn Sttrh 1sAuCttl "a
tion will not be allowed to affect the prott or los
from his regular business. A business trn
placed $4,000 In the hands OF n New YORK bro
ker, lnstructing him to use II in the purchase an
sale OF gold, on their account; and having los
$4,000 in this venture, tney claimed mat !
should be deducted nom their prohts IN business
commissioner Lc"Is ulSaiIomeu Tue eiall, I'M
said the uniform ruling mao Deen tnat Vhen
loss Is made In any particular business, aBans
which there are no gains 10 ouset,lt IL consul
cred q dedd toSs Y cdpHd' 1nees,ea ~ tndt oHs'
ness. Again, loss OF eapllai sannot De ue
Quoted from income. Return OF income mus
be made on the gam.
=. 40" u uIneten. y AI mHs tu .he smn u y
retnrneu sePaia.eii - "pomn " W. ''''""'
rulings OF CommissloneI Noslhs 49,,
.Nl- LOSE meuIIcui nc U VI ~ u
kind OF business canno, De deducted from gam u
business OF an entire!y dUerentcAdTdeter nor iron
salary rents, aivluenas, cue:
- LOSSES Incurred W u P",ad S,nn " VI. Oh
ordneh OF ounnc's aLuoi w leu eu'r. 49, sI ~
IN anotner, slhec w aosoIu'o Io's III III ~
prosecution OF hsihBio ouhiiehS IN '"uiSPehS"o''
a loss OF eapltal.
o. Losses IN merenahaise can oe ueauc'e'
only from gains IN mercnAn, Dn', ~ ~ ny, S -
particular branches OF merchanuise need NOT o.
separated. 20 In speculation tnc ioss OF gan
from stocks may offset loss or gam from produc
speculRted In"
(G-"Merchants must MAKE return oi tnei