The Louisiana Democrat. [volume] (Alexandria, La.) 1845-1918, 1866-05-23
TIE INCOME TAX.

ry--Lete Dscisicrs fsesn Wash
irgtGp an the subj. ct--Highly
Important to Persons Occupy
ing Their Own Houses.
Considerable discussion has been raised
of late regarding the collection Of the tx
on incomes and the duties of the people and
of the c.f1icials in the matter. The law on
the subject is very plain. 1t specifies that
taxpayers shall furnish thsir schedules to
the assistant assessors in their respective
districts on or before the first Monday in
May. The assessors are under no obliea-
tions to send blank forms. hut it is the bus
mess Of taxnayers to obtain them from
their Offices. fill them mp and return them
within the time specified Any neglect or
refusal to comply with the above recula-
lation subjects the offender to penalty of
twenty-five per cent added to the amount
ascertained to be due. andi in case of fraud
one hundred per cent is added. The blank
forms IRE now being rapidly distsihutcd to
the taxpayers. The following decision of
a case by the authorities at Washington
will settle the qnibble that has be"n raised
in the matter of receiving orlnot receiving
tie usual notification
OFFICIAL. DECISION.
Treas. DIRT OFFICE OF MT REVENUE
Washington, March, %. 1866.
Tn the case of--it appears that he
has paid the tax due. and the assessed pen
atty for 1864. but claims that he Should not
be required to pay an assessed penalty for
failure TO make a return Of his income for
1862 and 1863. for the reason that no no
tico was served upon him to make such re-
turns.
1t further appears that he is willing to
abide the decision of this office. on that
poiat. and if il is held that no notice was
requisite he will pay said fifty per cent as
sessed penalty. Upon careful examina-
ton of the sections of the act Of July l..
1862, which relate to this matter | am
clearly of opinion that notice TO make re-
turn OF income is not therein required.
Such return is to be made on or before the
lst day of August. 1862, and on or before
the first Monday in May thereafter, under
section six, which does notrequire any no.
tice. Section ninety three, in its own terms
and by reference to section six defines what
constitutes neglect or refusal to make such
return, and does not make notice given an
element thereof. Having thus defined his
neglect or refusal. it attaches to it the pen
atty provided in section eleven. Whatever
construction might be given the definition
of neglect stated in section eleven does not
affect the question Mt all, as that part OF
section eleven is not adopted by section
ninc,y-three, and therefore does not relate
to Income tax.
This Office holds Mr. liable to the
penalty assessed upon him for failure to
make return of his income for the years
1862 and 1863 Respectfully yours,
L. A. ROLLINS. Commissioner.
To-, New York city
The following official circular is intended
10 settle several disputed points in relation
to licenses ard the income tax
TREASURY DEPT OFFICE IS'T REv'Y,
Washington D. G. May a, 1866 (
The use OF form No. II y was suggested
by frequent losses which resulted from de-
lay in returning the annual list. Many per
sons who have paid for their licenses al
the time of making their applications were
subsequently, found to be insolyent or to
have died 4or absconded Taxpayers
eminent ,h.t ! cpnses shall be delivered
are as much intended as the gov
rs soon as possible after the lst Of May. as
they will be thus enabled to exhibit such
licenses when required. 1t was therefore
prescribed that applications for licenses
should in all cases be returned promptly to
tie collector, accompanied by lists thereof
in duplicate, on form No. liz. The at
t"ntion ofassessors and collectors is there.
fore now specially called to the instructions
confirmed IN series l., No !. relative to
applications for licenses, and they will he
expected to fully comply, as firm No 81
cannot be used until after the annual list is
advertised. a notice form, No. 100
should be served when licenses are ready
for delivery. To facilities the prompt and
early collection of the income tax. assessors
when they have received a sufficient num-
her 81 returns, OF the correctness Of which
they are satisfied, may transmit to the col.
lector. on form No. %. the assessments
made on such return. But no return
which is questioned, nor any assessment
made by the Assistant Assessors in the
absence Ola return. should be reported I'M
til after appeals have been heard. On re-
ceipt of such advance sheet the collector
will serve notice on form No. lOl. The
assessments thus transmitted in advance Of
the regular list should be entered on the
annual list. ard LIE receipted for on that
list. The appeals should be advertised and
the law complied with in all respects as il
advance sheets had not been forwarded. 1t
will be borne in mind that distraint cannot
he made for either license or income taxes
until after the complete annual list has been
returned and advertised Forms Nos. l0f
lOl are now in the hands of the printer
and orders therefore will shortly be filled
IMPORTANT TO uousE OWNERS.
The Commissioner also rules that the
trent of homestead actually paid may be
deducted, but the rental value of property
owned by the taxpayers is not a subject Of
deduction.
On this subject the law reads as fol
lows
SECTION III. y The amount
paid by any person for the rent of the home
stead used or occupied by himself or his
family, and the rental value Of any home
strad nspd or occupied by my person or b,
his family, in his own RIGHT or the right d
his wife shall not be inclnded or assessed
as part of the income of each person.
There can he no mistake about the mean
ing Of the law. 1t is very plain and ex
plicit on this point; and any person occu
nying his own house is legally entitled to :
deduction of its rental value from the taxa
bic income. As we have before stated
when the Rev5nue Law was first framed
this clause was worded very indefinitely. sc
that assessors took advantage of the cir
cumstance and would not allow the dednc
ton to be made. In March 1865, the law
Il IL. - a.