Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-05-16
ABSTRACT OF THE ANNUAL INCOME TAX.
ANNUAL INCOME TAX,

have arisen. we present the whole subject, under
Its several distinct heads:
STATEMENT SHOULD BE MADE-wHERE, WHEN,
AND BY WHOM.
!. The law requires every person oflawful age.
residing In the United States, to render to the
Assistant Assessor Of the sub.district In which he
or she may DO residing on the lst day Of May, q
written statement, according TO a prescribed
form, Of tho 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 BIO OBJ.
tanned from the Assistant Assessor. A person
having no fixed residence, should make q state
ment 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 show any
other Assistant Assessor, who otherwise might
make q second assessment.
:. The statement must be rendered on or be-
fore the LIST day OF May, or within ten days after
q written or printed notice requiring Il, has been
left at the place ofresidencc or OF business, or de.
posted In tho pcarest Post Office.
]: The annual income tax Is a personal tar,
and 1t cannot be assessed against any corporation,
company, or partnership US such. Every indl.
Vidual member must make u statement Of his or
her share OF or Interest In the gains and profits of
sucn company, ETC., whether such gains and
profits arc divided or not, and must also state
separately bis or her income from all other
sources. .. -...
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
STATEMENT
D III any person neglects or refuses to render O
written statement, the Assistant Assessor ia re.
quested TO Ill 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
then to add % per cent, to such tax as q penalty
for neglect or refusal.
G. An Assistant Assessor may be mlsled In
making this estimate, by being misinformed IN to
money received, or not informed m 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 Is frequently the one who refuses or neglects
10 make q statement. II such person will not
take the trouble to inform the Assistant Assessor,
'there IL n bar TO all complaint, should the assess.
ment prove Incorrect, and q heavier tax DO levied
than would otherwise be charged. Moreover,
after an assessment has once been made, II erro
neUus. II Is always troublesome to the party In.
terested TO have II corrected. All persons, there.
fore, but especially such as haze no taxable income,
should not fail TO render the required statement,
upon the proper blank, 10 as TO avoid undue tax
alton and trouble.
Z. Every statement must he verified by oath or
affirmation. When this Is not done. tho Assistant
Assessor Is required TO estimate the income and
to add % per cent to TO the tax.
EVILS OF MAKING A FALSE STATEMENT.
.. An Assistant Assessor has power to increase
a nniouut III huJ hthlcuucHtt AIleE RlNlUk quo
Information TO tho party interested. He IL 70.
qulred, also, TO add 100 per cent. to tho tax when
u 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 a false statement with In.
tent to defraud tho Government, and tho other
for perjury. .. ..-.- .r
MANNER OF MAKING UP STATEMENT OF INCOME.
BY the lleth section OF the law, tho Commits.
sloner Of Internal Revenue Is empowered TO pre-.
scribe the form and maRuer In which the state.
ment 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 asummary Of what has. been pre-.
scribed: -- .-. .......
/. Each OF the great classes into which the pur.
suits OF life and the investments of capital hnvo
been divided must be returned separately losses
In ono not being allowedt 10 Offset gains In another.
Thus u 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. ..rr...
Q The expenses incident to each business re
dcductible from the receipts OF that business.
3. Speculations legitimdtely belonging TO any
business, and these alone. may be carried into It's
profit and loss account. Thus q broker may spec.
ulnte In stocks, n dry goods merchant In cotton, q
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.
chandisc 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 10 his regular business, for tho purpose Of
speculation, the profit or loss from such spccula.
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, lnstrueting him to use It in the purchase and
anln NJ cold an fhatr nnnnnnR .. at,l hn.E- Lat
1915 0 In this venture, they claimed that II
should be deducted from their profits In business.
Commissioner Levin dlsallowed the claim. and
said tho uniform ruling had been that when
loss IL made In my particular business, against
which there are no gains TO Offset, It Is consid'
cred a dead loss of capital iauested in that bust
ness" Again, "loss of capital cannot DO 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:
(dl-"Loss incurred In the prosecution Of one
kind of business cannot be deducted from gain In
business Of m entirely dDereHtehardeter, nor from
salary. rents, dividends. etc.
U)-"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 a single business IL indlspensably
d loss Of capital"
(c)-"Losses In merchandise can be deducted
only from gains In merchandise; but, In this case,
particular branches Of merchandise need not be
separated. 50 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 galns from interest. diyl'
dends, rents, or ahy other source"
Losses In speculation cannot be deducted
from salaries, nor from gains In merchandise
/ When lOsscB arc sustained In one speculation and