Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-11-23
ABSTRACT OF THE ANNUAL INCOME TAX.
EVILS OF EHgLEcT TO MAKE OUT OR VERIFY
anLHnA4RAHa

5IAIEnENlh
& II any person neglects or refuses to render a
written statement, the Assistant Assessor IL re-
quested TO fll out a blank with snch persons
name, and taxable income estimated according 10
the best information that can be ootained, ana
upon this estimated income TO assess the TAX ana
then to Hdd 25 per cent, to such Tax asa penai'y
for neglect or refusal.
6. An Assistant Assessor may be misled IN
making this estimate, by being misinformed as to
money received, or not informed as 10 money
paid. He must assess. however, according 70 the
best information within bis reach. Inc only per
son capable Of giving absolutoly correct informa'
ton Ia 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 a bar to all complaint, should the assess.
ment prove Incorrect, and q heavier tax DC levied
than would otherwise DO charged. moreover,
aftet IN assessment has once been made, II GRO
neOus, It Is always troublesome to the party In.
terested TO have II corrected. All persons. there
fore, but especially such as hare no tdIdole income,
should not fall to render the required statement,
upon the proper blank, 80 rs to avoid undue tax.
alton and troubled
Z. Every statement must be verined oy odh or
affirmation. When this Is not done, the Assistant
Assessor is required to estimate the income and
to add rs per cent. to to the tax.
EVILS OF MAKIB6 A FALSE
9. An Assistant Assessor has power 10 tncredse
the amount In any statement, after giving que
Information to the party interested. Ho Is re-
quired, also, TO add 100 per cent. to the tax whsn
= false statement has been rendered and the
party making the false statement becomes liable,
not only for this additional tax. but hkewiso to
two distinct prosecutions before the United States
Courts-one for making u false statement with In
tent to defraud tho Government, and the other
for perjury.
MANNER OF MAKING UP STATEMENT OF INCOME.
By the lleth section Of the law, the Commits.
aoner Of Internal Revenue Ia empowered TO pre-
scribe the form and manner In which the state
ment Of income must be made up. This he has
done in a printed blank used BY tho Assistant A..
SCISSOR, and In various circulars and rulings Tho
following Is q summary Of what has 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 sepdrdtely- losses
in one not being allowed TO Offset gains In another.
Thus . merchant who engages In farming or In
spsculations not belonging to his legitimate busl'
ness cannot Offset gains In the one by losses in
the other.
.. The expenses incident TO each business re
deductible from the receipts Of that business.
3. Speculations L~s1itimately belonging TO any
business. and these alone. may be carried into ltd
profit and loss account. Thus u broker may spec.
ulRtc In stocks, n dry goods merchant In cotton, a
hardware mar In iron, etc, and such speculation
may affect the gain and toss Of such legitimate
business. A merchant also may make or lose by
exchange OF tue ki00 OF money pRlQ IOT MS mer'
chandIse, and this gain or loss belongs TO hs mer.
chandise account But II he buys gold, uncurrcnt
money, United States Treasury notes, or any
othor thing not one ofthe articles Of trade belong
ing to his regular business, for the purpose Of
speculation, the profit or loss from such specul8.
ton will not be allowed to affect the profit or loss
from his regular business. a business firm
placed e40.0OO 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
81. 800 in this venture. they claimed that Il
should be deducted from their profits In business.
Commissioner Lewis dissllowed the claim. and
said the uniform ruling had been that "v hen a
loss Is made in any particular business, against
which there are no gains TO Offset. II IL cOnsid.
cred \ dead lotg Of capital iHpested in that bust.
ness" Again, loss Of capital cannot be de.
Quoted from income" Return Of income must
be made on the Hains."
4. How far different kinds Of business must be
returned separately Is shown by the following
rulings Of Commissioned Rollins:
(d)-"Loss incurred In the prosecution Of one
kind Of business cannot be deducted from gain In
business OF an entirely dGrenteharaeta, nor from
salary, rents, dividends. etc
B)-"Losscs 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 lndispensably
q loss Of capital
(e)-"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 moy offsetioss or gain from produce
speculated In"
(d)-"Merchants must mak return OF their
profits from merchandise without regard to their
losses In speculation, or gains from Interest. di7i'
dcnds, rents, or any other source"
o." Losses In speculation cannot DO deducted
from 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 DO deducted from
gains In any other branch OF merchandise"
Where stocks etc, are bought a. q per
manent investment, and sold again merely 10
change the investment, a ioss sustained IN the
sale may be deducted rom the dividends from
sueA stock. But where the purchase Is made ior
tho purpose OF selling again on speeuiHaon, ING
loss sustained oy the SAFE cannoi oe deducied
nom dividend., out may 90 asaue'ea rom sI,n'
ueii'eu ~. ''