Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-10-08
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 Tag, and of the decisions by the Depart.
ment at Washington upon various a~ues,ion. that
have arisen, we present the whole subject. under
Its several distinct heads:
STATEMENT SHOULD BE MADE--wHERE,w HEs.
AND 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 no
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
and profits during the previous, year, from Jan.
uary LIST 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 q state.
ment wherever he or she may happen to DO and,
in case Of removal to another district. should take
n certified copy Of such statement to show any
other Assistant Assessor, who otherwise might
make a second assessment.
9. The statement must be rendered on or be.
fore the LIST day OF May, or within ten days after
a written or printed notice requiring 1t, has been
left at the place of residence or of business, or de.
posted In the pearest Post Office.
3. The annual income tax Is a personal tax,
and It cannot be assessed against any corporation,
company, or partnership, AZ such. Every indi.
vidual member must make q 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 stats
separately his or her income from all other
sources.
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
STATEMENTS.
S. If any person neglects or refuses to render a
written statement, the Assistant Assessor Is 70.
| Quested to 6nl out q blank with such persons
name, and taxable income estimated according to
the best information that can be obtained, and
upon this estimated income to assess the tax, and
I Nhan IN III ~ mar aAne ~ QnRh "A IA ~ n nnn -
for neglect or refusal.
| 6. An Assistant Assessor may be mlsled In
| making this estimate, by being mislnformed AZ to
money received, or not informed as to money
paid. He must assess. however, according to the
| best nformatiOn within his reach. The only per.
son capable Of giving absolutely correct Informs.
ton Is frequently the one who refuses or neglects
to make u II such person will not
take the trouble 10 inform the Assistant Assessor,
there Is a 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 Is always troublesome TO the party in.
| terested 10 have II corrected. All persons, there.
fore, but especially such as hape no tdLdble Income,
should not fail to render the required statement,
upon the proper blank, 80 Us to avoid undue tax
| alton and troubled
Z. Every statement must be verified by oath or
affirmation. When this Is not done, the Assistant
| Assessor Is required to estimate the income and
TO add 25 per cent. to to the tax.
EVILS OF MAKING A FALSE STATEMENT.
8. An Assistant Assessor has power to increase
the amount In any statement, after giving due
information to the party interested. Ho Is 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
Courts-one for making u false statement with In.
tent to defraud the Government, and the other
for perjury.
MANNER OF MAKINe UP STATEMENT OF INCOME.
BY the 18th section Of the law, the Commits.
| sioner Of Internal Revenue Is empowered 10 pre-
scribe the form and manner In which the state.
ment Of Income must be made up. This he has
done In u printed blank used by the Assistant As.
SCISSOR, and in various circulars and rulings. The
following is n summary Of what has been pre-.
Icribed:
|. Each of the great classes into which the pur.
suits Of life and tho 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
speculstlons not belonging to his legitimate busi.
ness cannot Offset gains In the one by losses In
the other.
9. The expenses incident to each business are
| deductlble from the receipts Of that business.
3. Speculations kgiiimaiely belonging TO any
| business, and these alone, may be carried into Its
profit and loss account. Thus a broker may spec.
ulate in stocks, a dry goods merchant In cotton, Il
| 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 bis mer.
| chandlse account. But II he buys gold, uncurrent
money, United States Treasury notes, or any
| other thing not ono 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 firm
| placed $4,000 In the hands Of a New York bro.
ker, insiructing 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 II
should be deducted from their profits In business.
/ Commissioners Lewis disallOwed the claim. and
said the uniform ruling had been that when a
loss ~ made In any particular business, against
which there are no gains to offset, II ~ consld'
cred a dead loss of capital iRuested In that bust.
ness" Again, "loss Of capital cannot be de.
Quoted from income" Return Of income must
be made on the 1diHs."
4. How far different kinds OF business must be
returned separately is shown by the following
rulings Of Commissioners Rollins:
(a)-"Loss incurred In the prosecution Of one
| kind Of business cannot be deducted from gain In
business of an entirely dGerenteharGeter, nor from
salary, rents, dividends, etc
(ES-"Losses incurred In the prosecution Of one
branch Of business cannot be deducted from gain
Il Ill AuOLuCIt liz III rOlht iofb IA hAt
prosecution Of a single business IL Indlspensably
. loss Of capital"
(O-"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 to their
losses In speculation, or gains from interest. divi.
dends, rents, or any other source"
O)-"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"
0--"Where stocks, etc, are bought Ms a per.
msnent investment, and sold again merely TO
change the investment, u loss sustained In the
sale may DO deducted from the dividends from
such stock. But where the purchase IL 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 'als Of stock, etc..
In the same year"
ISCoNE FROM RENTS OF
From tho total amount Of such rents received
within the year for which income Is estimated; or
due and collectable on the Dist day OF December
ofsaId 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 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.
Sd. Interest which accrued for tho year on in.
cumbrances upon the buildings rented or offered
| Eor rent mr. uoon tha lands on which thew stand,