Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1867-04-18
ABSTRACT OF THE ANNUAL INCOME IA,
ANNUAL TAX.

ANN " II
Having been requested to prepare an abstract
of what Ia required BY law In reference to the In
come Tax, and Of the decisions by the Depart.
meni At Washington upon various questions that
have arisen. No present the whole subject. under
its several distinct heads:
SHOULD Be hADE-wHERr, WHEN,
AND BY WHOM
L Thelaw requires every person oflawfulsge.
,, aiding In the United States, to render to the
Assistant Assessor ofthe sub-distr ct In which be
or she may be residing on the LIST day o fhay, a
written abatement, according TO = prescribed
form, Of the amount OF his or her income, gains
and profits during the previous year, nom jan
nary LIST to December 3lst, both days inolulive.
A printed blank containing this form can % 90.
tanned from the Assistant Assessor. A person
having no hxed residence, should make q state
ment wherever he or she may happen to DO; and,
In case ofremoval to another district, oul take
a certified copy Of such statement. to show any
other Assistant Assessor. who otherwise might
make n second assessment. rE lgl.-
9, The statement must be rendered on or pc
fore the LIST day Of May, or within ten days after
a written or printed notice requiring 1t, has beer
left at the place ofresldence or OF business or de-
posted In the . earest Post Once.
3, The annual income tax IL u personal tax,
and Il cannot be assessed agalnatR any corporation,
company, or partnership, as such Every inai.
vidual member must mako q statement OF nisoI
her share Of or INTEREST," In the gains and prontso OF
such company, etc, whether such gains and
profits are divided or not, and must also state
separately bis or her income from all other
sources
EVILS or L TO MAKE OUT OR VERIFY
.a STATEMENTS
5 II any person neglects or refusest TO renders
written statement, the Assistant Assessor ID re-
quested to all out a blank With such persons
name. and taxable income estimated according 10
the best information that can be obtained, and
upon this estimated income to asaesSthe tax, ana
then to add 25 per cent, TO such tax as o penalty
for neglect or refusal. 10000
6. An Assistant Assessor may De misied IN
making this estimate, by being misinformed a. TO
money received, or not informed ~ 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 the trouble to inform the Assistant Assessor,
there is a bar to all complaint. should the assess.
ment prove incorrect, and = heavier tax believed
than would otherwise be charged. Moreover,
after an assessment has once been made, IL erro
neSus, II Is always troublesome TO the partyin'
terested to have It corrected. All persons, there
fore, but especially sEch a. haueno taxable Income,
should not fall TO render the required statement,
upon the proper blank, 10 As to avoid undue tax
alton andtrouble
: Every sts.ement must be verified by oath or
affirmation. When this Is not done. the Assistant
Assessor IL 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 ~iaeredse
the amount In any statement, after giving due
information to the party Interested. He ~ re-
quIred, also. to add 100 per cent. 10 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 prosecutionsb before the United States
Courts-one for making u false statement with In.
tent to defraud the Government, and the other
for perjury.
MANNER OF MAKINo Up STATEMENT OF INCOME.
By the llsth section Of the law, the Commits.
sioner Of Internal Revenue 10 empowered to pre-.
scribe the form and manner In which the state
ment Of income must be made mp. This he has
done In a printed blank used by the Assistant As.
SCISSOR. and In varlous circulars and rulings. The
following Is n 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 sspdratsly- losses
In one not being allow ID to offsetgains In another.
Thus . merchant who engages In farming or In
spsculations not belonging to his legitlmate busi.
ness cannot Offset gains In tho one by losses In
the other.
2. The expenses Incident to each business IRE
deduetibie from the receipts Of that business.
3. Speculations k1itinatsly belonging TO any
business, aud these alone, may be carried into Its
profit and loss account. Thus a broker may spec.
ulate In stocks, u dry goods merchant in cotton, q
hardware man In iron, etc, and sueh speculation
may affect the Sdfn and Loss Of such legitimate
business. A merchant also may make or lose by
exchange or the kind Of money paid for his mer.
chnndise, and this gain or loss belongs 10 his mer.
chandise account. But II he buys gold, uncurrent
money. United states Treasury notes, or any
other thing not ono ofthe articles ftrade belong.
ing TO his regular business. for tho purpose Of
speculation, the profit or loss from such specula-
ton will not be allowed to affect the profit or loss
from bis regular business. A business firm
placed s40, 900 In the hands Of . New York bro.
ker, instructing him TO use II In the purchase and
sale OF gold. on their account; and having lost
e27, 500 In this venture, they claimed TINT II
should be deducted from their profits In business.
Commissioners Lewis disallowed the lain and
said the uniform ruling had been that when q
loss Ia made In any particular business, against
which there are no gains TO Offset, II IL consid.
cred a dead Ioss Of capital inusstsd In thai bust.
ness." Again, "loss Of capital cannot be de.
Quoted from income" Return of Income must
be made on the gdfns."
4. How far different kinds Of business must be
returned separately Is shown by the following
rulings Of CommisEoner Rollins:
(a)-"Loss incurred In the prosecution OF one
Kind of business cannot DO deducted from gain In
hrs;n sss m an ~,nti,,ly diferenfckardctey nor from
salayy rents. dividends, etc"
incurred In the prosecution Of one
krs,.h ~ husiness cannot be deducted from gain
In ano,h.r Inca "A absoiuts loss incurred IN the
nrosscntIon Of 4 sinele business h fundamentally
: los oT canital"
T~S-"Ios,ea In merchandise can DO deducted
onSy from cain. In merchandlse: but. In this case,
nar,,.rIa, Sr,nch.s IN mrrchandIse mead not be
a.r.,"d g IN .nacriatIon the loss ar 0aIn
sean s,oci. NAV afsset loss or gain from produce
.n.cnIated in
pIG-"Msrchants must make return Of their
nro6,. from MERCHANDISE without regard TO their
&c.,, IN snscnia,ion or uains from interest dIyi.
~. r.r,. ~ sny othsS sourcrn
IN ~ :ns.rIo,ion cannot n. d.aue,ad
,,Mm. ..,s,is. nor from gsins in morehandiss.
yyh.n ioss.. AZ. ,u.taIn,d IN ono speculation and
mneh ,ossss o. = .no,hsr snacuiat,nn srch ios,rs
sans seS. 49, .rrS ssins Iosss,in ons
may 70 us.e Al 80 he d.dnnt.d from
o oI =, n,hsr hr.nch oSnsrchansiss"
sa gum aWisr. .tonI. .tc ara honoht n, n mar.
,U1M, ,rSs.tu.nt and soid sSsin merely 10
change ths inysstm.nt. n loss s~9staIped In the
AL. NAV h. dsducted from the diyidends from
,,ck ,toch Bnt vher, Inc purchase Ia made for
ths nnrno., Of ssilinr again on Speculation, the
Ia, sn.tsInsd bv the sso cannot DO deducted
49, SisidsnSs Srt nav Ne Deducted fran gain,
hOm uI'IuVuust "eJ