Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-11-16
ABSTRACT OF THE ANNUAL INCOME TAX.
IvIIs or EEoLycr TO MAKE OUT OR VERIFY
arITPNHNTA.

Evils OF NEGLECT TO MAKE OUT Oh 'Eklff
STATEMENTS.
& II any person neelects or refuses to rendera
written statement, the Assistant Assessor ID re'
ouested to fill out a blank Win sucn persons
name and taxable income estimated according to
~ ~, informatiop that can be obtained, and
upon this estimated Income to assess the TAX ana
then 10 add 2j per cent, TO such TAX M q penalty
for neglect or refusal ~ Il. u,,.,.s T.,
a An Assistant Assessor may 10 misled In
making this estimate, by being misiniormed an 10
money received, or not informed M 10 money
maid He must assess, however. according TO the
brst Attenuation within his reach. The only per
son capAble of giving absolutely correct informa'
ton IL frequently the one VINO ieiusos UT heBieo's
to make a statement.r If such person VIII not
take tho trouble to inform tne Assls'An. ASsessor'
her, is a bar TO all complaint, should the assess.
mani proye incorrect, and q heavier tax DO levied
than would otherwise be charged. Moreover.
after nm assessment has once been made, II orro'
nsous. Il ia always troublesome to the party In
terested TO have II corrected. AL persons. thero'
fore, but especially SUCH as hdrs no tdIoole ineone'
should not fall to render the required statement,
upon the proper blank, 30 as 70 a'oia unuuo 'AA'
= Evsry stats,sent must be verified by oath or
affirmation. when this Is not done, the Assistant
Assessor Is required to estimate the income ana
to add 25 per cent. TO TO the tax.
EVILS OF MAKING A FALSE
0. An Assistant Assessor has power to tHcrease
the amount In any statement, after giving duo
Information to the party Interested; nc IN re-
quired, also, 10 add 100 per cent. 20 inc tah when
q false statement mas Deen renueiou =, auu ~
party making the false statement oecouIes liaoie'
not only for this additional tax; o9t nkewise 70
two distinct prosecutions before the United States
Courts-one for making a false statement" Win In
tent TO defraud the Government ana the other
for perjury.
MANNER OF MAKING UP STATEMENT OF dNCohh'
By the llSth section OF the law the Comulih'
slonor Of Internal Revenue Is empoWereu 10 pre-
scribe tho form and manner In when the stete.
ment Of income must be made up. rms No mas
done in a printed blank used by the Assistant A.
SCISSOR. and In FAMOUS 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 one not being allowed to offset gains In another.
Thus O 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 IRE
deductible from the receipts Of that business.
3. Speculations kSttimatsly 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 TO his mer.
chandise account. But II he buys gold, uncurront
money. United States Treasury notes, or any
other thing not one of the articles OF trade belong.
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 q 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 vhen a
loss IL made In any particular business, against
which there are no gains TO offset, II Is consid'
cred a dead loss Of capital invested In thar 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 diFerentehardeter, nor from
salAry. rents, dividends, etc
B)-"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 q single business IL indispensably
/ 4 loss OF CHplthl.
(c)-'Losses In merchandise can be deducted
| only from gains In merchandise but, In this case,
particular branches of merchandise need not be
| separated. So in speculation, the loss or gain
from stocks may Offset loss or gain from produce
speculated In"
(d)-"Merchants must make return OF their
profits from merchandise without regard 10 tneir
losses In speculation, or gains from interest. diVi'
dends, rents, or any other source"
E)-"Losses In speculation cannot be deducted
t.om salaries, nor from gains In merchandise
when losses are sustained In one speculation and
gains made In another speculation. such losses
may be deducted from such gains Losses In one
branch Of merchandise may be deducted from
gains in any other branch OF mercnanaise.
O-"whcre stocks etc, are bought as a per.
manent investment, and sold again merely 70
change the investment, q loss sustalheu IN lne
sale may DO deducted nom inc olvioenas IrSm
suen s.ocs. nus ME- an III on snson,.,Inn IN.
the purpose OF seinnB aeHn Oh sPesuin,IIn, u
loss sustained oy tne sac SaIno. y ucaue,ou
nom diViaenus; ou. Tay W usauG'eI from s.n'