Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-08-28
ABSTRACT OF THE ANNUAIqIN INCOME TAX
ANNUAITINCOME TAX.

ANNUAL7INCOME TAX.
Having been requested TO prepare an abstract
Of what Ia required by law In reference TO the In
como Tax. and Of the decisions by the Depart.
ment al Warrington upon VARIOUS questions that
have arisen, we present the whole subject, under
Its several distinct heads:
STATEMENT SHOULD BIZ MApE-wHERE,w WHEN,
AND BY WHOM. a
/. Tho law requires every person of lawful age,
residing In the United States, to render; to tho
Assistant Assessor of the sub.dlstr;ct in which he
or she may be residing on the LIST day of May, a
written statement, according to a prescribed
form, of the amount Of his or her income, gains
Snd profits during the previous year, from Jan.
uary LIST TO December 3lst, both days inclusive.
A printed blank containing this form can DO OBJ.
tained from the Assistant Assessor. A person
having no fixed residence, should make q state
u,ent wherever he or she may happento boz 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 a second assessment. =.
o The statement must be rendered on or be.
fore tho LIST day Of May, or within ten days after
written or printed notice requiring II, has been
left AT the place Of residence or Of business, or de.
posIted in the nearest Post Office.
z The annual income tax Is a personal tax,
and Il cannot BIO assessed against any corporation,
company, or partnership, AZ such. Every indi'
yIdual member must make q statement OF his or
her share OF or interest IN the gains ana Pron'soi
such company, etc, whetner such gains anu
profits are divided or not, and must also state
separately his or her income from all other
sources.
EVILS OF NEGLECT TO MAKE OUT OK VEkifr
5. If any person neglects or refuses 10 render a
written statement, the Assistant Assessor Is re-
Quested to I'LL out a blank with such PERSONS
name, and taxable income estimated according TO
the best information that can DO obtained, and
upon this estimated income to assess the tax, ana
then to add 25 per cent, to such tax as u penalty
for neglect or refusal.
6. An Assistant Assessor may be inisled In
making this estimate, by being misinformed hs TO
money received, or not Informed as 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.
tIon Is frequently the one who refuses or neglects
IN make a statement II such person will not
toka The trouble 10 inform the Assistant Assessor,
,Ser, n n bnr TO ali Complaint, should the assess.
mrnt prove Incorrect, and n heavier tax be levied
than would otherwise bc charged. Moreover,
after An assessment has once been made. II GRO
neous, 1t IL always troublesome to the party in
terested to have II corrected. All persons, there.
fore. hut especially such as hare no taxable income,
should not fail TO render tho required statement,
upon the proper blank, NO AZ to avoid undue tax
alton and trouble.
7 Every statement must be verified by oath or
Affirmation. When this IL not done. the Assistant
Assessor il required TO estimate the income and
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, 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 llaOlc,
not only for this additional tax, but likewise 10
two distinct prosecutions before the United States
Courts-onef for making a false statement with in.
tent TO defraud the Government, and the other
for perjury.
HAMMER OF MAXIM UP STATEMENT oP INCOME.
BY the llsth section of the law, the Commits
sion,ar 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.
sdssor. and in various circulars and rulings. The
folloyyinc Ia "A summary of what has been pre-.
scribed:
l. Each Of the great classes into which the pur.
suits of life and tho investments Of capital have
been divided must be returned sepdrdtely- LOSSES
In one not being allowed to Offset gains in another
Thus a 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.
9, The expenses Incident to each business IRE
deductible from the receipts OF that business.
3. Speculntions ieHftfmdteIy belonging to any
business, and Theses alone, may be carried into It's
profit and loss account. Ihus q 3roker may spec,
ulate In Stocks q dry goods merchant IN eet,on, a
hardware man In ron e,c;. ana sHeh sPecniatloh
may Affect the gam ana 1oss OF saGh legiuHa.e
business A merchant also may make orlose ny
exchange or the Kind OF money paid for MS mer'
chandise, and this gain or loss belongs to MS mer.
chandisc account. But II 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 specula.
ton will not be allowed TO affect the profit or loss
from his regular business. A business firm
placed $i0,OOo In the hhhds Oh new iork oro,
ker, lnstructing him TO use 1t in the purchase and
| sale OF gold, on their account and having lost
| SCI, 500 In this venture, they claimed that II
| should be deducted from their profits In business.
Commissioner Lewis dlsallowed the claim, and
| saId the uniform ruling had been that "vhen n
| loss IN made in any particular business. against
| which there are no gains TO offset. II IL consid.
| cred a dead loss of capital inrssted in thai bust.
mass" Again, Gloss Of capital cannot be de-
| Quoted from income" "Return Of income must
| he made on the gains"
4. How far different kinds Of business must DO
returned separately Is shown by the following
@M ~ b%sIS.ss e cannot ~ bs 'd ded RrgsSGS Srom S on oP I1
business OF an eHtvey dW1eHtcHdTdC'eT' nor from