Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1866-06-20
lSsfsAcf 81 fHs ANNUAL INCOME TAX
ANNUAL TNCOmE TAX.

Having been requested TO prepare an abstract
Of what & required by law In reference to the In
come Tar, and OF the decisions BY the Depart
ment atfWashington upon various questions tnat
have arisen, We present the whole subject, under
It's several distinct heads: ei1aaG:C Q
STATEMENT SHOULD BE MADE--wHERE, WHEN,
AND BY WHOM.
/. Tho law requires every person oflawful age,
residing In the United States, to render TO the
Assistant ASSESSOR Of the b.dlstrict In which no
or she may BE- residing on the LIST day OF Nay, 0
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 lit to December 5lst, bo'h' days inclusive.
A printed blank containing this form can be OBJ.
tanned from the Assistant Assessor. A person
having no hxed residence, should make Q state.
ment wherever he or she may happen TO boz and,
In case ofrennovht to another district, should take
a certified copy Of such statement to show any
other Assistant Assessor, who otherwise might
make q second assessment,
9. The tatement must DO rendered on or be.
fore the lsti day Of May, or within ten days after
0 written or printed notice requiring It, has been
left at the place Of residence or Of business, or de.
posted In the pearest Post Office.
3. Tho annual Income tax 10 O personal tax,
and 1t cannot be assessed against any corporation,
company, or partnership, as such. Every indl.
vIdual member must make o statement Of his or
her share of or interest In tho 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
sourcoB. ~ THa r1HiN.+ AI
EVILS OF NEGLECT TO MAKE OUT OH VERIFY
STATEMENTS.
S. II any person neglects or refuses to render a
written statement, tho Assistant Assessor 10 re-
/ auested to hl out q blank with such persons
name, and taxable income imated 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 MS n penalty
for neglect or refusal.
6, An Assistant Assessor may be misled In
making this estimate, by being mislnformed rs 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.
tion Is frequently the one who refuses or neglects
to make q statement. II such person will not
take tho trouble to inform tho Assistant Assessor,
there Is q bar to all complaint, should tho assess.
ment provo Incorrect, and ahearier tax be levied
than would otherwise DO charged. Moreover,
after an assessment has once been made, II erro
neous, Il Is always troublesome to the party In.
terested TO have II corrected. All persons, there.
fore, but especially suoA az hare no taxable income,
should not fail to render tho required statement,
upon the proper blank, so as TO avoid undue tax
ationiand trouble.
7, Every statement must be verified by oath or
Affirmation. When this 10 not done, the Assistant
Assessor ID required to estimate the Income and
to add IS per cent TO to the tax.
EVILS OF MAKING A FALSE STATEMENT.
0. An Assistant Assessor has power 10 tnered's
the amount In any statement, after giving due
information TO the party Interested. He Is 70.
quired, also, to add 100 per cent. to the tax when
O false statement has been rendered and the
party making tho 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 IScoMr.
BY the llsth section Of the law, the Commits.
sioner Of Internal Revenue is empowered TO pro.
| scribe tho form and MANNER 10 which tho state.
ment of income must DO made up. This he has
done In q printed blank used by the Assistant As.
SCISSOR, and In vanous circulars and rulings. Tho
following 10 q summary Of what has been pre-.
scribed -
/, Each Of the great classes into which the pur.
suits Of life and tho Investments Of capital have
been divided must DO returned separately losses
In ono not being allowed to Offset gains In another.
Thus q merchant who engages In farming or In
| speculaiions not belonging to his legitimate busi'
ness cannot Offset gains In the ono by losses III
the o:her. .
2 The expenses incident to each business re
deductlble from the receipts Of that business
8 Specuiatlons L~Sitimdisly belonging to any
business, and these ulone. may DO carried into Its
proht and loss account. Thus q broker may spec
/ ulnto In SHOCKS, o Dry ROOub mcTCuhutl III CSttOub q
hardware man In iron, ETC.. and sueA speculation
may affect the gain and Loss Of sheh legitimate
business. A merchant also may make or lose by
exchange or the kind Of money paid for bis ner
chandlse, and this gain or loss belongs 10 bis mer.
| chaudl.e 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 DO allowed TO affect the profit or loss
from his regular business. A business firm
| placed 10000 In the hands Of u New York bro.
ker, instructipg him TO use Il In the purchase and
| sale OF gold, on their account; and having lost
e27, 800 In this venture, they claimed that Il
| should DO deducted from their profits In business.
| Commissioner Lewis disallowed the claim, and
said the uniform ruling had been that ~ hen q
loss Is made In any particular business, against
| which there are no gains to Offset, II 10 consid.
| cred O dead loss Of capital inrested IN that bust.
nas." Again, "loSs Of capital cannot be de-
Quoted from Income" Return Of Income must
| be made on the Sdins."
| returned separately Is shown by the following
| rulings Of Commissioner Rollins:
(a)-"Loss incurred In the prosecution OF one
| kind Of business cannot be deducted from gain In
business Of an entirely d1trenteharaeta, nor from
| salary, rents, dividends. ETC.
B-"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 IN indispensao'y
. loss OF SaPi.aL .-,u.. a ho doar,,sd
only from gains In merchandise but, In this case,
paluo.ia, So in .n.cri.,Ion M" Loss or cain
se an s,ect, nav oSsst ioss or gain from nrosnc.
.n.criatsd IN -"
ES-"Merchant. must make return OF their
Mai, from merchandise without regard 10 their
ioS.ss IN snccnlatIon. or eains from interest, dIyI.
SnndS r,nts ~ onv othsp source"
T1"Los.es in speculation cannot DO deducted
t,om valnrIes NOR from paIns In merchandise.
Wh.n in..ss arc .u,taIned In one speculation and
r.in. maSe IN another snecniation Tncb iosses
NAV h. deducted from such gains Losses In one
may % nsschandI,s "r maS he asdnc.od from
o.Sn. !, orv n,hsr branch ofmsrchanSi.s
s atS. aWSsrs s,ocrs az are honsSt a, n mar.
~, inss.tmsnt md soId aoain mcrclv 10
nhann. ,ho In..s,m.nt a ins. sSstainsd In the
euanso = i. snSmo,.d t.on sha dIviJsnds from
s ss.I Icy y Raj ~. ,ha nnrchnss r. mase for
~ nnrno.o ~ ss,lIno aoSIp on sneculation. Tho
lno pu,Po 'n.S bv a. ssia eannot he S.SneteS
Nee EW.sh S.S.s. 80. -.