Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-09-26
DISTRACT OF rHB ANNUAL INCOME IA
ANNUAL o TAX.

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, wo present the whole subject, under
It's several distinct heads:
STATEMENT SHOULD BE MADE--wHERH, WHEN,
AND BY WHOM.
!. The law requires every person oflawfal 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, q
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 fixed residence. should make q state
ment wherever he or she may happen to be; and.
In case of removal to another district, should take
q certified copy Of such statement. to show any
other Assistant Assessor. who otherwise might
make o second assessment r ~
9. The statement must DO rendered on or DO.
fore the lst day Of May, or within ten days after
a written or printed notice requiring It, has been
LEFT Mt the place Of residence or Of business, or de.
| posted In the pearest Post Office.
3. The annual income tax is a personal tax,
and II cannot be assessed against any corporation,
company, or partnership. as such. Every indi.
vidual member must make q statement OF bis or
her share of or interest In the gains and profits Of
such company, etc, whether such gains and
profits arc divided or not, and must also state
separately his or her income from all other
sources.
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
~sTLTEMEsTs.
S. II any person neglects or refuses to render a
written statement, the Assistant Assessor In re-
quested to ill out u 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, 10 such tax as q penalty
for neglect or refusal
6. An Assistant Assessor may be mlsled in
making this estimate, by being misinformed ~ to
money received, or not informed as TO money
paid He must assess, however, according to the
best information within bis reach. The only per.
son capable Of giving absolutely correct informa.
ton Ia frequently the one who refuses or neglects
to make a 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 erro
neous, II IL always troublesome to the party In.
terested to have II corrected. All persons. there.
fore, but especially such as hdrs NO taxable income,
should not fail to render the required statement,
| upon the proper blank, 30 as TO avoid undue tax.
alton and trouble-f ..
7. Every statement must be verified by oath or
Il u Ht0LlUU. w utu ulb u " uOutt II Ahhlhthlt
Assessor Is required to estimate the income and
to add IS per cent. TO 10 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-
quirod, also, 10 add 100 per cent. to the tax when
y 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 q false statement with In.
tent to defraud the Government, and the other
for perjury.
AANNER OF MAKING UP STATEMENT OF INCOME.
BY the llsth section Of the law, the Commits.
sioner OF Internal Revenue Ii empowered to pre-
scribe the form and manner In which the state
ment Of income must be made up. This he has
done In q printed blank used by the 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.
suits Of life and the investments Of capital have
been divided must BE- returned separately- losses
| in one 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 10 each business sre
deductible from the receipts Of that business.
3. Speculatious lSSftimdtely belonging to any
business, and these alone. may be carried Into Its
profit and loss account. Thus a broker may spec.
ulate In stocks. a dry goods merchant In cotton. a
hardware mar In iron, etc. and such speculation
may affect the gain and loss Of such legitimate
business. A merchant also may make or lose by
exchange or the kind Of money paid for his mer'
chandise, and this gain or toss belongs 10 his mer.
chandise 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
IRON his regular business. A business firm
| placed $40. 900 In the hands OF a New York bro.
ker, ins,ructing him to use 1t In the purchase and
| sale Of gold, on their account and having lost
S27, 500 In this venture, they claimed that II
should be deducted from their profits In business.
| Commissioner Lewis disallowed the claim, and
said tho uniform ruling had been that when q
loss Is made In any particular business, against
which there arc no gains TO Offset, 1t IS consid'
cred a dead loss Of capital inuested In that bust.
ness" Again, floss Of capital cannot be de-
| Quoted from income" Return Of income must
| be mado on the gains"
4. How far different kinds Of business must be
returned separately Is shown by the following
rulings Of Commissioner Rollins:
(d)-"Loss incurred In the prosecution Of one
kind Of business cannot be deducted from gain In
business Of an entirely diFerenteAardeter, nor from
salary, rents, dividends, etc"
0)-"Losses incurred In the prosecution Of one
branch Of business cannot be deducted from gain
~ ano..11, ~ : a. ~ -. husim.S. =. ioSisp.nsaM,.
proseeu.on ~ Ss"s'' ou"e Hu"penAA''S
~ S"pns n.rc,ord,,. ..n h. a.dro,.a
~ Loss ~ ns.hanSI.e, I o., ~ $780,
July y on. 90 n...oh" : ,aaS ny, =,
Pai'eains q ~ .Ian W." neeu y " ~
sopafa.eI. 80 pns.o. ~ w "s =. -.
~speculated In"
mc..oInnanu. LII .Ts HIsSor rsna,d - ,hei ,
plons nU or ~o;rs fsom iStarast disI.
Iossss III pesuIsuon, w. s"na 49,
aenSs' .Inas !. ~ = synscnia,,on nanno, h. d.drc,sd
,.t..,." - g. n.i,. In mo,cbardiss
u ~ Sniaisea, nv, ain. gun ~ > .,aonia,i"n ana
mnen Iosse o. !, .no,Ssr sna.uis,inn snch iosss.
snnS S . toonn oatn. osso. IN ons
may 20 un.shnndI.s ur n.S -. daJnn,.d hrnm
pIahen vi IHINnS msy = "nSiSs" ""-
Sans IL MY o.ne, y. VI = hanmh. q n
" mnere s.oeAs, e,e., W ooush' y p.,
manen' ,nVes.men., u "D %e. aS"n tnnS ~ az ~
enanbe = n..s |" ~ dIuidands fror,
sag may % SeauI, er. r ,ha nrr ~ ~ mads Sor
, ,M rryno.s Of Ealing again on specnIation. the
i Iv p.n.tsinsd nv ,hs ssls cannot be deducted
srom diyidsnds. 6ut nav be deducted from gains
derived from the purckass and sals Of stock, etc,