Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-05-29
ABSTRACT oP THE ANNUAL INCOME IA
ANNUAL INCOME TAX.

ANNUAL lNCOm6 TAI
Having been requested TO prepare an abstract
Of what Is required by law in reference to the In
como Tar, and of the decisions by the Depart.
ment at Warrington upon various questions that
have arisen, we present the whole subject, under
Its several distinct heads: 2ffW
STATEMENT sHoULD BE aADE-wHERE, WHEN
AND BY WHOM.
!. The law requires every person Of NJ age
residing in the United States, to render to the
Assistant Assessor Of the sub-dlStrict In which no
Or sne may be residing on the LIST day OF Aay,a
mItten statement. according to O prescribed
.oin, OF the amount Of his or her Income, gains
nau prom. during the previous year, from Jan.
Y , ~ 70 december 3lst, bo'h days inclusive.
a printed blank containing this form can be OBJ
sunea itom the Assistant Assessor. A person
naylng NO n1ed residence. should make o state
ment wherever he or she may happen to ba; and,
10 caso ot FsinovM 70 another district, should take
eeruneo copy OF such statement to chow any
other Assistant Assessor, who o,brrvise might
make O second assessment.
2. The statement must DO rendered m mr. bc.
fore the LIST day Of May, or within ten days after
@ written or printed notice requiring II, has been
Icft at the place Of residence or Of buslns,.- ar A..
posted In the pearest Post Office.
3. The annual income tax 10 Q personal tar.
and It cannot DO assessed against any corporation,
company, or partnership, as such. Every IndI.
vlduul 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 mu,t also state
separately bis or her income from all other
sources. .#1E..
EVILS OF NEGLECT TO MAXI o OR VERIFY
STATEMENTS.
5 II any perton negleets or refuses TO render O
written statement, the AsslAtant Assessor Is re.
Quested to Ill out @ blank with such persons
name, and taxable income estimated according to
thu hast Inflammation that run he Obtained. and
upon this estimated Income to assess the tax, and
then to add IS per cent, TO such tar ~ q penalty
for neglect or refusal. .n
6. An Assistant Assessor may DO mlsled In
making this estimate, by being misinformed as to
money received, or not informed as 10 money
paid. He must assess, however, according 10 the
best information within his reach. The only per.
son capable Of giving absolutely correct informa.
ton IL frequently the one who refuses or neglects
TO make q statement. II such person will not
take the trouble TO inform tho Assistant Assessor,
there Is q bar TO all complaint, should the assess.
ment prove incorrect, and o heavier tax DO levied
than would otherwise DO charged. Moreover,
after an assessment has once been made, II erro
neous, II Is always troublesome to the party In
terested to have Il corrected. AL persons. there.
fore, but especially sueh as hdrs no taxable Income,
should not fail to render the required statement,
upon the proper blank, so a. 70 avoid undue tax.
alton and trouble.
!. Every statement must BIO verified by oatA or
Affirmation. When this Is not done, the Assistant
Assessor Is required to estimate the income and
to add 25 per cent to to the tax
EVILS OF MAKING A FALSE STATEMENT.
9. An Assistant Assessor has power to tneredse
the amount In any statement, after giving duo
information to the party interested. He IL 70.
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. 20 ' Ha.".
MANNER or MAKING UP STATEMENT OF INCOME.
BY tho ll8th section Of the law, the Commits.
sIoner Of Internal Revenue is empowered to pro.
scribe the form and manner In which tho 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 boon pro.
seribed: .a
!. 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
speeulations not belonging TO his legitimate bust.
ness cannot Offset gains In the one by losses In
the other.
9. The expenses incIdent to each business arc
deductIble from the receipts Of that business.
3 Speculations Ltgitimdtely belonging to any
business, and these alone. may be carried Into its
profit and loss account. Thus broker may spec.
ulate In stocks, a dry goods merchant In cotton, u
hardware man In Iron, etc., and sueh speculation
may affect the gain and iois Of sleh 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 loss belongs TO his mer.
chandise account But II be 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 $4,000 In the hands Of q New York bro.
ker, i%nstructing him 10 use It In the purchase and
sale Of gold, on their account; and having lost
S2, 500 In this venture, they claimed that Il
should be deducted from their profits In business.
Commissioner Lewis disnllowed the claim. and
said the uniform ruling had been that ~ hen q
loss IL made In any particular business, against
which there are no gains TO Offset, II Is consid.
cred a dead loss Of capital iHuestsd In thdt bust.
ness" Again, "loss Of capital cannot be de.
Quoted from income" Return Of income must
be nude on the 8aias."
4. How far different kinds Of business must DO
returned separately Is shown by the following
rulings Of COMMISSIONS Rollins:
(dI-"Loss incurred In tho prosecution Of one
kind Of business cannot be deducted from gain In
business Of an entirely dGren.ehdrdeter, nor from
salary, rents, dividends, etc. rryr.
8)-"Losses incurred In the prosecution OF one
branch Of business cannot be deducted from gain
In another, since an absolute loss incurred In the
prosecution Of q single business Ia indispensably
a loss Of capital" t
e)-"Losses In merchandise can DO deducted
only from gains In merchandise; but. In this case,
particular branches Of merchandise need not be
separated. So In speculation, the loss or gain
from stocks may Offset loss or gain from produce
| speculated Il" -...sn
Gh-NM Merchants muat maka return n THAR