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

AZ ANNUAL INCOME TAX.
Having been requested TO prepare an abstract
Of. what Is required by law In reference to the In.
come Tax, and Of the decisions, by the Depart.
ment at Washington upon various questions that
have arisen, we present the whole subject, under
rs several distinct heads
STATEMENT sHoUL BE M~ADE-.wHERE. WHEN,
by WHOM.
i. The law requires eyery 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 Of May, a
written statement, according to o prescribed
6nd 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 a 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.
2. The statement must be rendered on or be.
fore tho LIST day Of May, or within ten days after
q written or printed notice requiring II, 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 q personal tax,
and IL cannot be assessed against any corporation,
SOhAP
vidual member must make a 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 yERIrY
STATEMENTS. ..M
5. II any person neglects or refuses to render IL
written statement, the Assistant Assessor Ii 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
then TO add IS per cent, TO such tax az a penalty
for neglect or refusal.
6, An Assistant Assessor may be mlsled 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 Is frequently the one who refuses or neglccts
to make a statement. II such person will not
take the trouble to inform the Assistant Assessor,
there Ia a bar to all complaint, should the assess.
ment prove incorrect, and u heavier tax be levied
than would otherwise be charged. Moreover,
after an assessment has once been made, II erro
neOus, II IL always troublesome TO the party In
terested to have II corrected. All persons, there.
fore, but especially sueh as hare no taxable income,
should not fall to render the required statement,
upon the proper blank, 30 IN to avoid undue tax
alton and trouble.
7. Every statement must be verified by oath or
aErmatioR. 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. He IL 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,
,AN n,l,, Tor thIu additional tn~ hut Enta.f 0 N
two distinct prosecutions before the United States
Courts-onef for making false statement with In.
tent to defraud the. Government, and the other
for perjury.
MANNER OF MAKING UP STATEMENT OF INCOME.
BY the 18th section Of the law, the Commits.
sioner Of Internal Revenue IL empowered to pre-.
scribe tho form and manner In which the state.
ment Of Income must be made up. This he has
done in q printed blank used by this Assistant As.
SCISSOR, and in various circulars and rulings. The
following Is a summary Of what has been pre-.
scrIbed;
/. Each Of the great classes into which the pur,
,uIts of life and the Investments of CAPITAL have
ba.n divided mu,t he returned s,parat,Iu- LOSSES
in one moi being allow ed TO offset gains In another,
Tbu, a merchant who engage, In farming or In
.nacrIatJons moi he,onoIng 10 nj. le0I,Imai. bpsi.
rsss cannot oef.st eains IN the one nv losses In
.hs o,h.r
- IT, i,,,d.,, m ,oob h,.,,o.. 20
dsduc,ihls from The rrceInts Of that business "
q Snacuia,Ion. L<1if;.at<IU h.IoDoInu IN any
hrs,nsss and tbsss alone may he carrisd into m,
UroS, snd Ios. accorn, Tbn: hrotar nav snsc.
r,io,. In 10y. a drv Goods msrchan, In co,tnr a
u 80 80 .ant .naorto,tn
nns@.o. ~ 80. - 49, - fost,i'na,.
may ahect tho gam ana '0ssoi sHGA IcSitiina.e
business meienaht : may max u lose "
eScnsnBe VI ,ne ~ nioney PnIu . ~ u
eha n y ~ gam pn, |h toSS oe,Omss ~ y y,
,nm.n irnI,ed s,a,as Troa.r1s 81, w. an,,
aiSSnasy w, on nS,h. ar,Ici.: uv, ba,ongy
G,ns, mig III n oarIar hn.Inas. fs ,h .a nrrDnsa 81
.nscrla,ion tbs nrost or los from sncb .pecuIa.
ion will moi he allowed 10 affect IN, prodt or Ioss
from hIs regular business. A business firm
nIaced Gao, 600 In the hands Of a New York bro.
kcr, InstructIug him TO use II In the purchase and
All, of gold, on their account; and having lost
so7 200 in this venture. thew claImed that IL
should be deducted from their profits In business.
Commissioner Lewis disallowed the claim, and
said the uniform ruling had been that "vhen q
loss IL made In any particular business, against
which there are no gains 10 Offset, II Is cOnsid.
cred n dead loss Of capital INFESTED in thai bHsf.
ness" Again, loss OF capital cannot be de.
Quoted from income" Return Of income must
be made on the gains"
T.. How far different kinds Of business must DO
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 diGereHtc character, nor from
salary, rents, OiVl0enQs, etc.
(6)-"Lones 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 q single business IL lndispensably
a loss Of capital"
()-"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 speculatIou, or gains from interest, diyi.
dends. rents. or any other source" -
In .nscnla,ion cannot be deduc,ed
from uaInrie. nor from gains in merchandIse
W. Ioss.. = "rstair. a IN one sn.cniatIon and
ssin. m"ds In ano,har snecuia,Inp snch ios.s.
,nax he %.Srctsd from sucb eains Inssa. IN ono
h"y nT msrshandI.s 80 ha dadun,na ro
caJn. II 49, ,har hrancb ofrsrchanSi.a y"
eHn W. .,onLs 90 are hamnh. ". y.
~, nnasm"n, arS Ia 1913 q. -. -
chana. ,ha Innastm.n, n inSs sSs,a,nnS ~ ~ w
sais NAV bs dadnc,sd from ,ba dIvldands f,nro
surb stock Rnt wbsT, Tho nrrchsss "a mads Tor
The nnrnoss ~ se,lIna ssa,p on snsor,a,Inr H.
hAp RaA RbHVO Va Oitih ~ W. HHtShiihNlOu0 II