Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-08-09
ARsrRAcT OF. THE ANNUAL INCOME TAX
ANNUAL INCOME TAX,

.-r nA-'S- -'-Er''fH'F=.
Having been requested TO prepare an abstract
NJ what is required by law In reference 10 tnc ~
come Tax, and Of the decisions, oy ue DePh ha
ment 1t Washington upon Saoons 9rLi"ot nndsr
have arisen, We present the "noie suUye'' "ANN
its several distinct heads:
SHOULD BE NADE-wHERE,w WHEN
AND By WHOM.
1 The law requirea eyery person OF lawful ny,
reading In the United States, 10 rcnder 70 y
A~s,Istant Assessor OF the sub.dlstr.ct In when no
or she may DO resitingl on the lst gay OF %gb.Sd
form. OF the amotnt Of his or her income, gains
md profits during the previous year, from jan
uary lat TO December 3lst, both days inciusive'
A printed blank containing thisform can DO on.
tanned from tho Assistant Assessor. A person
having no fixed residence, should make a state
mont wherever he or she may happen TO DO; ana,
In case OF removal to another district, should TAX
a certified CODY Of such statement to show any
other Assistant Assessor, who otherwise might
make o secopd assessment
Q. The statement must be rendered on or bc'
fore tho LIST day Of May, or within ten days after
a written or printed notice requiring 1t, has been
left nj the place of residence or Of business, or de-
poslted In the pearest Post Office.
3. Tho annual income tax Is a personal tax
and It cannot be assessed against any corporation,
company, or partnership, as such. Every indi'
yIdua member must make q. statement OF his or
her share Of or interest In the gains and prohts OF
such company, ETC., whether such gains anu
profits are divided or not, and must also stale
separately bis or her income from all o'ner
sources u,,v
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
STATEMENTS.
5. If any person neglects or refuses 10 render"
written statement, the Assistant Assessor IN TO
ouested 10 All out u blank with such persons
name and taxable income estimated according TO
the best information that can be OBTAINED anu
upon' tbIs estimated income to assess the tax, ana
| then to add IS per cent, to such tax IN q penalty
for neglect or refusal. Il,
G. An Assistant Assessor may oe nisiea. IN
making this estimate, by being mIsinformed as to
| money received, or not informed AZ to money
| maid. He must assess, however, according 10 the
best nformatio within HIS reach. The only per-
son capable Of giving absolutely correct lnioIihh.
tIon IL frequently the one who refuses or negiects
10 ,nako a statement. If such person will not
take the trouble to inform tho Assistant Assessor'
there u a bar 10 all complaint, should the assess,
ment prove incorrect, and a heavier tax be levied
than would otherwise DO charged. Moreover
| after an assessment has once been made II erro
neous. IL is always troublesome to the party In
t.res,ed 10 have Il corrected. All persons. there
fore, but e~speeially such as hare no tdIable income,
should not fall TO render the required statement,
upon the proper blank, 80 as to avoid undue tax.
alton and trouble.
4 Every statement must be verified by oath or
Affirmation. When this il not done, the Assistant
| ABhchhOT " ItVuhVu g." ehihh' 49,
to add 25 per cent to to the tax
EVILS OF MAKING A FALSE STATEMENT.
9. An Assistant Assessor has power to increase
the amount In any statement, inter giving que
information to the party Interested: lie IL re-
ouIred. also, TO add 100 per cent. to the tax when
a false statement has been rendered and the
party making the false statement becomes liable
not only for this additional tax, but likewise ia
two distinct 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 OF MAKING UP STATEMENT or INCOME
BY tho llsth section Of the law, the CommS'
sioner Of Internal Revenue IL empowered to pre-
scribe tho form and manner In which the s'Hte
ment OF income must be made up. This he hai
done In u printed blank used by tbs Assistant ~
SCISSOR, and In VARIOUS circulars and rulings. III
following Is a summary Of what has been pre-
scribed:
/. Each Of the great classes into which the pun
suits Of life and the Investments of capital hay
been divided must be returned stpdrdtely- losse
In one not being allowed to offset gains in another
Thus y merchant who engages in farming or !
speculntions not belonging TO his legitimate bus
ness cannot Offset gains In the one by losses !
the other.
. The expenses incident to each Business Z
deductlble from the receipts Of that business.
3, Speculations LSGitimdtely belonging TO an
business, and these alone. may be carried into II
profit and loss account. Thus a broker may spet
ulate In stocks. u dry goods merchant In cotton
hardware man In Iron, etc, and such speculaiio
NAV affect the gain and loss Of such legitimRt
business. A merchant also may make or lose b.
exchange or the kind Of money paid for his mel
chandise, and this gain or loss belongs TO his mel
chandise account. But II he buys gold, uncurren
money, United States Treasury notes, or an.
other thing not one Of the articles of trade belong
ing to his regular business, for the purpose Z
speculation, the profit or loss from such speculf
tion will not be allowed to affect the profit or los
from his regular business. A business trr
placed $40, 600 In the hands OF a New York bro
ker, instructing him TO use II In the purchase an
sale OF gold, on their account; and having 10.
e27, 500 In this venture, they claimed thht
should bc deducted from their profits In business
Commissioner Lewis disallowed the claim. an
said the uniform ruling had been that when
loss tx made in any particular business, agalns
which there are no gains to offset, It Is cOnsld
cred a dead loss Of capital inrested In that busi
ness" Again, "loss of capital cannot be d.
Quoted from income" Return OF income mus
be made on the gains."
4. How far different kinds Of business must b
returned separately Is shown by the followin
rulings Of Commissioner Rollins;
,(a)-"Loss incurred in the prosecution Of on
Kind of bhsiness cannot DO deducted from gain !
business Of an entirely diGerentehdraeter. nor fror
salary, rents, dividends etc
1)-"Losses incurred In the prosecution OF on
!. branch Of business cannot be deducted from gal
!, In another, since an absolute loss Incurred In til
. nrosecutIon Of a single business Is indispensable
. q loss of capital"
!, G1-"Losses In merchandise can be deducte
only from gains In merchandise; but, in this cas-
particular branches Of merchandise need not
: separated. So In speculation, the loss or gal
. from stocks may Offset loss or gain from produs
: specialized in.'
, (d-"Merchants must make return OF the
, profits from merchandise without regard to the
: losses In speculation, or gains from Interest DIV
> dcnds, rents, or any other source"
. e)-"LoSses In speculation cannot be dedusie
from salaries, nor from gains IN meicnanuls
When losses ore sustained In one speculation an
i gains made 10 another speculation. such loss
may be deducted from such gains Losses in or
branch Of merchandise may be deducted frol
gains in any other branch Of merchandise.
} n-"Whero stocks, ETC., are bought as q pc
manent Investment, and sold again merely
=. change the Investment, q loss sustained In II
] saIe NAV be deducted from the dividends frol
. . .as1 s,osL pnt wbcr, Tho purchase IL made Il
. he nnrnose on selling again on speculation, Ii
ios, ,n,tslned by .he sale cannot be deducte
. rom SIvidends. but may DO deducted from gair
d.i,ad from cha o,,rfhdss and sdlk Of stock. etc