Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-09-14
ABSTRACT OF THE ANNUAL INCOME TAX
ANNUAL INCOMR TAX.

ANNUAL INCOME TAX.
Having been requested to prepare an abstract
OF what Is required by law In reference TO the In
como Tax, and OF the decisions by the Depart.
ment 81 washington upon various questions that
have arisen, we present the whole subject, under
It's several distinct heads:
STATEMENT SHOULD BE MADE-wHERR, WHEN,
AND BY WHOM
l. The law requires every person o flawful age,
residing In the United States, 10 render TO The
Assistant Assessor OF the sub-distr.ct In which he
or sho may DO residing on the LIST day Of May, a
written statement, according to q prescribed
form, Of the 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 be OBJ.
tanned from the Assistant Assessor. A person
having no hxed residence, should make q state.
ment wherever he or she may happen to be; and,
In case of removal to another district, should taxi
q certified copy Of such statement TO show any
other Assistant Assessor, who otherwise might
make q second assessment.
9. The statement must be rendered on or be.
fore the LIST day Of May, or within ten days after
. written or printed notice requiring 1t, has been
left at the place Of residence or of business, or de.
posted In the nearest Post Office.
8. The annual income tax Ia u personal tax,
and II cannot be assessed against any corporation,
company, or partnership. as such. Every indi.
vidual member must make q 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 oP NEGLECT TO MAKE OUT OR VERIFY
STATEMENTS.
S. II any person neglects or refuses to render a
written statement, the Assistant Assessor IN re.
quested to ill out a blank with such persons
MANN and tarnhla tnannna aaNIrnaNn1 onAnnl,,. a.
the best information that can be obtained, and
upon this timated income TO assess the tax, and
then TO add 25 per cent, 10 such tax ~ a penalty
for neglect or refusal.
6. An Assistant Assessor may be misled In
making this estimate, by being misinformed as to
money received, or not informed IN 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 a statement. II such person will not
take the trouble TO inform the Assistant Assessor,
there Is a bar 10 all complaint. should the assess.
ment prove incorrect, and a heavier tax be levied
than would otherwise be charged. Moreover
after an assessment has once been made. II erro
neous, Il IL always troublesome to the party In
terested to have II corrected. All persons. there
fore, but especially such as hare no taxable income
should not fail to render the required statement
upon the proper blank, SO as TO avoid undue tax
alton and troubled
-.,1 vvhan ,bis u No, dona On. Sssis,,n,
t1n""Ano mrI 80 ..,I,.a,. ~ 49,. 49,
to add 25 per cent to to the tax.
EVILS OIL MAKIS0 A FALSE STATEMENT.
.. An assistant AssessoI has P""e' 70 1.'
we amoun' IN my s'aseinen., ai'e5 sMIns aa'
iniorniation 10 'ne party Interested; no hre
quired' Also 10 add iVo per cent 70 Tue TAX wnsl
q false statement has been rendered ana th'
L parfN, Nnatiun tho falga stafannanf hannmeI liahla
not only for this additional tax, but likewise u
two distinct prosecutions before the United Staie'
Courts-one for making n false statement with In
tent to defraud the Government, and the othel
for perjury.
MANNER OF MAKING UP STATEMENT OF INCOME
BY the llSth section OF the law, the Commls
sioner OF Internal Revenue Ia empowered to pre-
scribe the form and manner In which the state
ment OF income must be MADE up. rms no ma
done In a printed olank used oy tns Assistant A.
SCISSOR, ana IN various elrcn,aIs ana ruihsS IN
ioIio",ns " "Sunh""iy Vi I" III" oV" Wv
'eIIioSTr -, ,,h.or.,, uoss.. into (which ,bo nm,
10y uS. Wv u s 81. ",u"s,M,.n,s ~ nani,sI IN
.uIe ~. ~ "n -. ~ ~ ,s,nnaaI L..
oeen uIrtatu nusu 20 ~ ~ rJ,. a,h.,
none no' oetn "rn y = I. I,
Thus . merchant VINO engages IN farming or y
speeu.a,lons ~. oeIons'us ns esitI"n'e ouS q
ness cannot onSe' gains III 'no one oy iosSeS u
the o.her. ,..,,.,, .oo, b,..
! deductlble from the receipts of that business,
q, Speculatlous ~k1itimdtely belonging to an,
| business, and these alone. may be carried into Il
| profit and loss account. Thus a broker may spec
| ulate In stocks, n dry goods merchant In cotton,
hardware man in iron. etc. and such speculation
may affect the gain and loss Of sueh legitimat
business. A merchant also may make or lose b.
exchange or the kind OF money paid FOR MS mer
chandise, ana TINS gam OF loss belongs 10 MS Hler
chandise account, But u ne ouys Soid' uncurreh
money, United states treasury notes, or an.
other thing not one OF the articles OF TRADE oelons
Ing TO his regular business, Tor the purpose Q
speculation, the pront or loss from sucn specuiH
| tion will not be allowed to affect the profit or los
from his regular business. A business fri
placed $4,000 In the hands Of q New York bro
ker, instrueting him to use 1t In the purchase An
sale OF gold, on their account: and having los
S27, 500 In this venture. they claimed that
should be deducted from their PROFITS in business
Commissioner Lewis disallowed the claim, an
said the Uniform ruling had been that ~ hen
loss IL made In any particular business, agains
which there are no gains 10 Offset, 1t Is consid
cred a dead loss of capital Invested In that busi
ness" Again, "loss of capital cannot be de
Quoted from income" Return Of income mus
be made on the gains"
4. How far different kinds Of busines must b
returned separately Is shown by the following
rulings Of Commissioner Rollins:
(d)-"Loss incurred In the prosecution OF on
business OF an ehIiIey VoeneAd'ae'@ nor ron