Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-10-06
OF THB ANNUAL INCOME TAX
ANNUAL INCOME TAX.

Having been requested 10 prepare an abstract
OF what is required BY law In reference to the In
come Tax, and Of the decizions by the Depart.
ment al Washington upon various questions that
have arisen, we present the whole subject, under
It's several distinct heads:
STATEMENT SHOULD Be M~ADE-wHERE, WHEN,
Or N By WHOM.
]. The law requires every person OF lawful age,
residing In the United States, to render to the
Assistant Assessor of the sub.distr.ct In which he
or she may be residing on the LIST day ofhay.a
written statement, according to q prescribed
form, Of the amount Of his or her income, gains
end profits during the previous year, from Jan.
uary LIST 70 December 3lst, both days Inclusive,
A printed blank containing this form can be oo'
tanned from the Assistant Assessor. A person
having no fixed residence, should make a state
ment wherever be or she may happen TO be- and,
In case Of removal 10 another district, should take
q certified copy Of such statement to show any
other Assistant Assessor, who otherwise might
make a second assessment.
2. The statement must DO rendered on or be-
fore the LIST day Of May. or within ten days after
q written or printed notice requiring 1t, has been
leh at the place Of residence or Of business or de-
posted In the pearest Post ONCE.
3. The annual income tax 10 o personal wax
and It cannot DO assessed against any corporation'
company, or partnership, as such. Every inoi'
vidual member must make a statement OF nis y
her share of or interest In the gains and prohfs OF
sucn company, ECU Wuouof SUN
profits are divided or not, and must also state
separately his or her income from all otner
EVILS OF NEGLECT TO MAKE OUT OIL VERIFY
~sTATEMENTS
5. II any person neglects or refuses to render
written statement, the Assistant Assessor IL re-
quested to fill out q blank with such persons
name, and taxable income estimated according 10
the best information that can be obtained, and
upon this estimated income to assess the tax, and
then TO add IS per cent, 10 such tax ~ q penalty
for neglect or refusal ...... .
6. An Assistant Assessor may be misled in
making this estimate, by being misinformed as 10
money received, or not Informed ~ 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'
tlon IL 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 Ii a 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, If GIRO
neuus, Il 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 fail TO render the required statement,
! upon the proper blank, no as 10 avoid undue tax.
| alton and troubled
7. Every statement must be verified by oath or
affirmation. When this Ia not done, the Assistant
AHheBEOT ~ TtVulEtu ~ e1kluk I " hhu
to add 25 per cent. to to the tax.
EVILS or MAKING A FALSE STATEMENT.
9. An Assistant Assessor has power to tnersdse
the amount In any statement, after giving due
information to the party Interested. He Is re-
auired, also, TO add 100 per cent. 10 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 dlstinct prosecutions before the United States
| Courts-one for making a false statement with In
tent to defraud the Government. and the other
for perjury.
MANNER or MAKING UP STATEMENT OF INCOME.
By the 18th section Of the law. the Commits
sioner Of Internal Revenue is 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 the Assistant As.
SCISSOR. and In various circulars and rulings The
| following Is u 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 sepdrdtely- losses
In one not being allowed to offset gains In another.
| Thus q merchant who engages In farming or In
speculaiions not belonging to his legitimate bust.
ness cannot Offset gains In the one by losses In
the other.
deductible from the receipts Of that business.
3. Speculations i~s9iimately belonging to any
business. and these alone. may be carried into It's
profit and loss account. Thus a broker may spec
ulate in stocks, u dry goods merchant In cotton. a
hardware man In iron, ETC.. and sueh 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 bis mer'
chandise, 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 one Of the articles Of trade belong
ing to his regular business, for the purpose Of
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 trm
placed e40,O 900 in the hands Of q New York bro
ker, instructing him 10 use II In the purchase and
sale Of gold, on their account ; and having lost
S27, 800 In this venture, they claimed that II
should be deducted from their profits In business
Commissioner Lewis disallowed the claim. and
said tho uniform ruling had been that "vhen q
loss is made in any particular business, against
which there are no gains 10 Offset, u Is consid'
cred a dead loss Of capital iHrested IN thai bnsi
ness" Again, "loss Of capital cannot be de
Quoted from income" Return Of income mus
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 d6erentcAaraetv, nor from
salary, rents, dividends. etc."
0)-"Losses Incurred in the prosecution Of ONT
branch Of business cannot be deducted from gain
in another, since an absolute loss incurred in the
prosecution Of a single business IL indispensably
9 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 be
separated. so In speculation, the loss or gain
from stocks may Offset loss or gain from produce
Epeculated in"
Merchants must make return Of their
profits from merchandise without regard to their
losses In speculation, or gains from interest. divi'
dends, rents, or any other source
0)-"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
may be deducted from such gains Losses in one
branch Of merchandise may be deducted from
gains In any other branch Of merchandise"
GO-"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 DO deducted from the dividends from
such stock. But where the purchase Is made for
tho purpose Of selling again on speculation, the
loss sustained by The sals' cannot be deducted
from dividends, but may be deducted from gains
derived from the purehass and sale Of stock etc.
In the same year"
From the total amount Of such rents received
within thu year for which income Is estimated. or
due and collectable on the 3lst day OF December
Of said year, should be deducted:
Ist, The amount paid or due. by the owner for
repairs made within the year, not exceeding the
yearly average paid out for such purposes Tor the
preceding Ave years. and not Including any
amounts paid or due for new structures, or for
new and permanent improvements.
Cd. 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. .
IA Interest which accrued for the year on In.