Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-09-07
ABSTRACT OF THE ANNUAL INCOME TAX
ANNUAL- INCOmR TAX. =,

Having been EeQuchto0 w
chat "a reouIred BY law In reference to the In
come Tax, and Of the decisions by the Depart.
ment at washington upon various quesnons tnas
have arisen, we present the whole subject, under
Its several distinct heads:
~sr,TyNrST SHOULD BE MADE-wHERE, u
AND BY WHOM.
/. The law requires every pef.on OF " ~,
ks,Istant Assessor Of the sub.distr.ct In which no
NJ sbr NAV be residing on the lst day OF Maya
written statement, according 10 O prescriOeo
form. of the amount Of his or her income gains
Snd profits during the previous year, nom jan
uary LIST to December 3ist, pom dhys inciusiSe'
tainod from the Assistant Assessor. A person
hav,nu NO axed residence, should make a state
m,nt wherever he or she may happen to be; and
In case of removal to another district, should take
a certified copy Of such statement TO snow any
other Assistant Assessor, VINO otherwise might
make n second assessment.
D The abatement must be rendered on or De-
fore the LIST day of May, or within ten days after
a written or printed notice requiring 1t, has been
Ian nj the place Of residence or Of business, or dc.
poslted In the pearest Post Office.
3. The annual income tax Is q personal tax,
and 1t cannot be assessed against any corporation
company, or partnership, N such. Every indi.
yIdual 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 state
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 Il
written statement, the Assistant Assessor In re-
quested to ill out a 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
than IN nhh Or DAr cent 20 HuCl tax RH n penalty
for neglect or refusal.
6, An Assistant Assessor may be misled In
making this estimate, by being misinformed M TO
money received, or not informed rs 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 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 is u bar TO all complaint, should the assess.
mcnt prove incorrect, and q heavier tax be levied
than would otherwise be charged. Moreover,
after an assessment has once been made, II errO
neous, It IL always troublesome to the party In.
terested TO have II corrected. All persons, there.
fore, but especially such as haue no taxable income,
should not fail to render the required statement,
upon the proper blank, 30 IN TO avoid undue tax
alton and troubled
7 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 4 FALSE STATEMENT.
9. An Assistant Assessor has power to increase
the amount In any statement, after giving due
information to the party interested. Hc IN re.
quired. also. 10 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 prosecutiOnsbcfor the United States
Courts-one for making n false statement with In.
-. D.. I.franI sIn rnuarnnNnnt md the nfhnT
for perjury.
HAMMER oR MAKING UP STATEMENT OF INCOME.
BY the 18th section Of the law, the Commits.
sioncr Of Internal Revenue IL empowered to pre-.
scribe tho form and manner In which the state
mont of income must be made up. This he has
done in n printed blank used by the Assistant As.
SCISSOR. and In various circulars and rulings. The
following Is n summary Of what has been pre-
scrlbed:
l. Each Of the great classes into which the pur.
suits of life and tho investments Of capital have
been divided must DO returned separately losses
In one not being allowed to offset gains In another.
Thus q 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 re
deductIble from the receipts Of that business
3. Speculations lgisimately belonging TO any
business, and these alone. may be carried into Its
profit and loss account. Thus a broker may spec.
ulate In stocks, n dry goods merchant In cotton, n
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 If he buys gold, uncurrent
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 spcculn.
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, instructing him 10 use 1t 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.
Commissioner Lewis disallowed the claim. and
said the uniform ruling had been that when a
loss IL made In any particular business, against
which there are no gains to Offset, 1t Is consid.
cred a dead loss Of capital tHpested in that 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 DO
returned separately IN shown by the following
rulings Of Commissioner Rollins:
(d)-"LOss Incurred In the prosecution OF one
kind of business cannot be deducted from gain in
business Of an entirely digerenteharaeter, nor from
salary, rents, dividends, ETC.
O)-"Lossesi Incurred In the prosecution Of one
branch OF business cannot be deducted from gain
In another, since an absolute ioss incuireu III rue
prosecution Of a single business ~ indispensably
a 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
speculated in"
OD-"Merchants must make return of their
nroats from merchandise without regard TO their
iosses In ejaculation, or gains from interest, divi.
bends. rents, or any other source"
GS|"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
nav he deducted from such gains Losses In one
hra,cb of merchnndIse may be deducted from
os1 - - o,hor hrarcb ofmercbonAI.en
s nuI' N.Y. y s,ooLs o,c ara houcbt az N ner.
e u, rasusnt "nS ,oid avnin merely 10
hAnn. ,ha Irrastment , loss snstaIncd in the
S Sntn ," y. dodrc,ed rom tho dlvIdends from
sa,J may 10 pn, Inc. ths nnrcbass IN made for
,he rrrnose n Ealing again ON speculation, the
,no p at b, ,ha SeIa cannot be deducted
s S diSId.nS,. Int NAV he deducted from gains
| dsrjved from the purchase and sale Of stock, etc,