Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-10-18
OF THE ANNUAL INCOME TAX
ANNUAL INCOME TAX.

Having been requested to prepare an abstract
come Tax, and Of the decisions by tho Denart.
ment at Washington upon various Questions Ina,
have arisen, We present the whole Eubject under
Its several distinct heads:
STATEMENT sHoULD BE MADE-.wHERI. wHys.
AND by wHoA
!. The law requires every person o flawful age,
residing In the United States, to render TO tbe
Assistant Assessor Of the sub.distr.ct In which he
or abe may be residing on the LIST day Of May, "A
wrltteh statement, according to q prescribed
form, OF tho amount Of his or her income, gains
End 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.
nent wherever be or she may happen to DO; and,
In case OF removal to another district, should take
= eertined copy OF such statement to show any
other Assistant Assessor, who otherwise might
make u second assessment
=. The statement must be rendered on or be.
fore the LIST day Of May, or within ten DAYS after
. written or printed notice requiring q It, has been
len az the place OF residence or of business, or de.
posted In the dearest Post Office.
3. The annual income tax Is a personal tax,
and 1t cannot be assessed against any corporation,
company, or partnership, ms such. Every indi.
viduA member must make q statement Of his or
her share OF or Interest In the gains and profits Of
such company, ETC., whether such gnins and
prohts are divided or not, and must also state
separately his or her income from all other
sources.
EVILS OF NEGLECT TO MAKE OUT OK VERIFY
STATEMENTS.
5. II any person neglects or refuses to render u
written statement, the Assistant Assessor IL re-
quested to hl out u blank with such persons
raiuer and taxable income estimated according TO
the best that can be obtained, and
upon this estimatedl income 20 assess the tax, and
then to add 25 per cent, TO such tax IN IA penalty
for neglect or refusal.
8. An Assistant Assessor may be misled In
making this estimate, by being mislnformed an to
money received, or not informed IA 10 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 ls frequently the one who refuses or neglects
to make q statement. II such person will not
take the trouble TO inform the Assistant Assessor,
there Is a bar to all complaint, should the assess.
ment prove Incorrect, and q heavier tax be levied
than would otherwise be charged. Moreover,
after an assessment has once been made, II srro
neous, 1t Is always troublesome to the party In.
teresied TO have II corrected. AL persons, there.
fore, but especially such as hare no taxable Income,
should not fall to render tho required statement,
upon the proper blank, 80 ~ to avoid undue tax.
alton and troubled
4. Every statement must be verified by oath or
affirmation. When this IN not done, the Assistant
Assessor Is required to estimate the income and
to add IS per cent to to the tax.
EVILS OF MAKING A FALSE STATEMENT.
g.. 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
o 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 IA false tatement with in.
tent to defraud the Government. and the other
for perjury.
aANSER OF MAKING Up STATEMENT OF INCOME.
By the llsth section Of the law, the Commits.
Aoner Of Internal Revenue IL empowered to pre-
scribe the form and manner In which the state
ment of income must be made up. This he has
done In a printed blank used by the Assistant As.
SCISSOR, and In varous circulars and rulings. The
following Is a summary Of what has been pre-.
acribed:
!. Each Of the great classes into which the pur,
suits Of life and the Investments Of capital have
been divided must be returned separately losses
In ono 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.
Q. The expenses incident to each business re
d-ductible from the receipts Of that business.
5. Speculations Legttimately belonging to any
business, and these alone. may be carried into III
profit and loss account. Thus a broker may spec.
ulate In stocks, n dry goods merchant In cotton. q
hardware man In iron, etc, and such speculation
may affect the gain and Loss Of sEeA Legitimate
business. A merchant also may make or lose by
exchange or the kind Of money paid for his mer
chandlse, and this gain or loss belongs to his mer
chAndi.e account. But II he buys gold, uncurren'
IL. a
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 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 q New York bro.
ker, lnstructing him to use It in the purchase and
sale OF gold, on their account and having lost
s27,5 500 In this venture, they claimed that Il
should be deducted from their profits In business
Commissioner Lewis disallOwed the claim, and
said the uniform ruling had been that when u
loss Is made In any particular business, against
which there are no gains to offset, 1t - consid.
cred q dead loss Of capital iHpesied IN that bust.
ness" Again, floss Of capital cannot be de.
Quoted from income" Return of income must
be made on the SaiHs."
4. How far different kinds Of business must be
returned separately Is shown by the following
rulings Of Commissioner Rollins
a)-"Loss incurred In the prosecution Of one
Stha Oh ouslness Sannot " ueuucted from gam III
ousiness !. NJ Tmsr.sy Vee"'@"d'ae4"' HOT from
S"ialy' rsh.s, ainiuenus; e.':
usulaua :. y pIon.eu'.on VI ohe
GTanenS usos eai,not ue ueuue'eu Iom gam
IN ano.nGI, sue ~ aosoiIse ioSs 'IeIiled N ~
PIoseeuslon ~, s"s'o ou''ne'" husPenS"o'S
a,oss OF enp,sn' ,...ho,,,.. a,..
Losses IN neIcnanaise Ian 1e aeaucleo
only from gains ~ mefcnanuisei ou', IN this eAse,
paruculn, branches oi nerchahuise need nor De
sepua'eu: IN sPeeuiaaon, Ihe ios OF gam
rom STOCKS may onset ioss OF gam from produce
speeulated m;
o. merehanIs must MAKE return OF tneir
prohts from merehannlse without regard 10 their
losses In speculation, or gains from interest, dtvi.
dends, rents, or any other source
ia In speculation cannot be deducted
from salaries, nor rom 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 De deducted from
gains In any other branch OF marchAndise.'
U-" where STOCKS, etc, are bought as a per
manent Investment, ana soiu again merely 10
change the investment, a loss sustained In the
sale may DC deducted nom the dividends from
tneh stock. But where the purchase Is made Tor
the purpose OF selling again on speculation. the
loss sustained by the sale cannot De deducted