Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-10-01
OF THE ANNUAL INCOME TAX
ANNUAL INCOME TAX.

Having been requested to prepare an abstract
Oh mnas Is required 6y law In reference to the In
come Tax, and Of the decisions by the Depart.
ment at Washington upon VARIOUS questions that
have arisen, we present the whole subject. under
Its several distinct heads:
STATEMENT SHOULD BE MADE-wHERY, WHEN,
AND BY WHOM.
l. The law requires every person OF lawful age,
residing In the United States. to render to the
Assistant Assessor Of the sub.distr.ct In which be
or shs may be residing on the LIST day Of May, u
written statement, according to d 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.
tanned from the Assistant Assessor. A person
having no fixed residence, should make a state.
ment wherever he or she may happen to be; and.
In case Of removal to another district, should take
n 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
a written or printed notice requiring II, has been
left at the place Of residence or Of business, or de-
posited in the pearest Post Office.
3. The annual income tax Is a personal tax,
and It cannot be assessed against any corporation,
company, or partnership, ~ 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 are divided or not, and must also state
separately his or her income from all other
sources.
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
5. If any person neglects or refuses to render a
written statement, the Assistant Assessor Is re-
uuested to ill out "a 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 25 per cent, 10 such tax as q penalty
for neglect or refusal.
o, An Assistant Assessor may be mIsled In
making this estimate. by being misinformed as 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-
| ton liz frequently the one who refuses or neglects
to make Il statement. If such person will not
take the trouble TO inform the Assistant Assessor,
there il q 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, 1t Is always troublesome to the party in.
terested TO have II corrected. All persons, there.
fore, but especially such as haze no taxable income,
should not fail to render the required statement,
upon the proper blank, 80 rs to avoid undue tax
| alton and troubled
Z. Every statement must be verified by oath or
affirmation. When this Is not done, the Assistant
4 fhNbOhhOl IN ihi ~ NcNA1Aeh hAS AhNNAHN '-N
TO add 25 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 duo
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 liable,
not only for this additional tax. but likewise to
two distinct prosecutions before the United States
Courts-one for making a false statement with In.
tent to defraud the Government, and the other
for perjury.
MANNER OF MAKING UP STATEMENT OF INCOME.
By the llsth section Of the law, the Commits.
sioner Of Internal Revenue Is empowered TO pre-.
scribe the form and maHHer In which the state
ment Of income must be made up. This he has
done In u 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:
l. 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 u 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 are
deductible from the receipts Of that business.
3. Speculations lesitimdtely belonging TO any
business, and these alone. may be carried into Its
profit and loss account. Thus II broker may spec.
ulate In stocks, a dry goods merchant In cotton, a
hardware man in iron. etc, and such speculation
NAV affect the gain and loss Of such Legitimate
hm:irsss merchant also NAV make or Ios. by
sSchsng. mr. the Kind OF money Maid for bis mef.
cbondiss and mi. gain or loss belongs IN MI, mer.
cbanJi.. account But n be buy, gold. uncurren,
money. United States Treasury notes, or any
other thing not one of the articles Of trade belong.
Ing 10 his regular business, for the purpose OF
speculation, the profit or loss from such specula
lion will NOT be allowed TO affect the profit or los,
from his regular business. a business firm
placed $40 600 In the hands Of a New York bro.
ker. lnstructing him to use Il 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 a
loss Ia made in any particular business, against
which there are no gains 10 Offset, II IL cOnsid.
cred a dead loss of capital iHpested In that 6usi.
ness Again, loss of capital cannot be de-
Quoted from income Return Of income must
be made 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
business NJ an ,ntir,lv dif,rentehnracter nor from
saIary rant, divid.nds etc"
My"Losses incurred In the prosecution of one
branch of business cannot be deducted from gain
| In anothsr. since an absolute loss Incurred In the
nrosscu,ion of n single business IL indispensably
! Ioss Of c%anitaI"
60 osse, In merchandise can be deducted
o,Sn wow ,o,r, in m.rchandi.e INT In his ease
nart,cnlar branches Of mercbandIse need moi be
ssnarated 50 in speculation. the loss or gain
from stocks NAV offsst loss or gain from produce
sneculated in"
(D-"Merchants must make return of their
pros,v from mcrcbandIse without regard TO their
losses in SPECULATION, or gains from interest, diyi.
SnnSs ren,s nv anv otbsp source"
-" IIos.ss in speculation cannot be deducted
from salarIe,. nor from gains In merchandise,
VII, tnssas o,a srs,aIr.d In one snecnIs,jon and
uneA o"Se in ono,har sna.uis,,nr snch ios.s.
sainS ~ doS,a,.S Trom srcb sains Iosss. IN ons
m"y ~ morchnndIss NAV hs dedncted from
oains ~ onn n,har branch ofmsrcbanSiss"
S]rpHaWbsrs stoets, etc ara bought M a per.
amen, Investment, and soId again merely 10
cbnncs m. Investment, n loss sustained In the
saIs NAV h. deducted from the dividends from
,mnl stock, But where the purchase il made for
Tho nurnosc of sailing again on speculation, the
Ioss sustained by the sale cannot be deducted
NS $1,000. -. ..t..