Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-08-17
ABSTRACT OF THB ANNUAL INCOME Tax
TAX.

- f. w OOU
|. -
Having been requested to prepare an abstract
of what Is required by law In reference 10 Ine u
come Tax, and Of the decisions by the Depalt.
ment 1T Warrington upon various quesuons IIat
have arisen, we present the whole subject unoer
its several distinct heads:
STATEMENT SHOULD BIZ MADE-wHERE, WHEN
AND BY WHOM.
j. The law requires every person oflawfal age,
residing In the United States, to render TO the
Assistant Assessor of the sub.dlstr:ct In which no
or she may be residing on the LIST day Of May a
written statement, according TO q prescribed
form, Of the amount Of his or her income, gains
Gnd profits during the previous year, from jan
uary LIST to December 3lst, both days inclusive.
A printed blank containing this form can be oD'
tanned from the Assistant Assessor. A person
having no fxed residence, should make a state
ment wherever he or she may happen TO 90; 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 q second assessment.
Q. 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 It, has been
LEFT at the place of residence or Of business, or de.
posted In the pearcst Post Office.
3. Tho annual income tax IN a personal tax,
and IL cannot be assessed against any corporation,
company, or partnership, as such. Every indi.
vidual member must make q statement of his or
| 0cT huhIG OF OF tcTcb III II Bhluh hLli piOhhso VI
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
STATEMENTS.
5. II any person neglects or refuses 70 render u
written statement, the Assistant Assessor IL re-
quested to ill out q 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, to such tax III a penalty
for neglect or refusal.
| G An Assistant Assessor may be misled In
| making this estimate, by being mlsinformed az 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 iniormh.
ton Is 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 Ia u bar TO 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, II Is always troublesome to the party In.
terested TO have 1t 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, 80 ~ TO avoid undue tax.
alton and trouble.
Z. Every statement must be verified by oath or
affirmation. When this IL not done. the Assistant
Assessor Is required to estimate the income and
to add 25 per cent. to TO tho tax r
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 Is re-
Quired, also, to add 100 per cent 10 the tax when
n 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 INCOME.
BY the 18th section Of the law, the Commits
sloner OF Internal Revenue IN 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.
SCISSOR. and In various circulars and rulings. The
following Is a summary Of what has been pre-
scribed:
l. Each ofthe great classes into which the pur.
suits Of life and the investments Of capital have
been divided must be returned sepdrdtely- losses
IN one moi being allowed TO offsst gains /, another
Tim, a merchant who engages In farming or In
NEGOTIATIONS not belonging TO his Legitimate buSi.
ness cannot Offset gains In the one by losses In
,bo o,h.r
o rhe expenses incident to each buslness re
d.Jrc,Ih,s from the receint, of that businr,,
= Snon,ia,tnrs J,ai,;n,,,J, hsInr giny 10 any
vi ,b.ss 9,on. NAV he ca9rIed into ~
Iva, aDd Ios. accopnt rbn: n hroker NAV spcc.
Mat. In stocks. IA dry good. merchant in cotton, Il
bnrdwnre man In iron, etc, and such speculation
mav aTac, ,h, aain and io,, ~ .ur6 IcuItImnte
business. A merchant also may make or lose by
exchange or the kind OF money paid for his mer.
chandise, and this gain or loss belongs to his mer.
chnndise 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 10 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 s40,OOo in. the hands Of 4 New York bro,
ker, instrncting him to use II In the purchase and
sale OF gold, on their account and having lost
81. 500 In this venture. they claimed that II
should be deducted nom their profits In business
Commissioner disailowed the claim, anu
said tho Uniform ruling mad been thht Vheh .
loss IL made In any particular business, aBalns'
which there are no gains 10 onset, IL ~ consiu'
cred q dead loss q capital inpested IN maj 0nst
ness" Again. loss OF capital cannot DC de'
Quoted from income. - Return OF income must
be made on .he SaIm. u,. b.
s"no."taIr Ia shoSn NV ,hs soiioS,nS
ruttnno ~ Commissioner Rollins
~. Innnrrad IN tba n,o..cr,ion NJ ON,
10 Loss - a. do1mo,"d S.ou, o a ~ ~
nn'in.s. ~ an ,1tir.Iy SiS,,sntc1araei.r nor from
saIary rant. dIyidends etc"
'" MSJ,. T os,ss ircnrred IN IN. prosecutIop Of one
Snwck n hnsipess cannot be deducted from gain
nn~Sa. sInne an ah.oir,. loss Incnrred IN the
III In ou ~ ~ a sincIo busInsss !. indisnensabIy
PIoseeustm :"
S rTnps". In merchandise can he deducted
Eoa ~ ,ns.cbanSjss I'M, In ,bis case
only rum sana ~ Ina.oha,d,s naaJ no, ho
pallieuin 9 - H. .noonia,Inn the Loss or caIn
separa.eu: IN spe.nn"Dr aIU frnm nroS"oa
rom stoeSh may ~ '"''' ~
sPcyuia.vu ~ 49,. NAB. r.,,r, ~ chair
"Merehants mus max return " h ~
prohts from mefchAnuho mi'Hout fgBau W LII iSn
losses In speculation, OF Salns nom ih'e''"'' "'''
dendB, rents, or any otner soufSo. ,