Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1867-04-23
ABSTRACT OF rHBANNuAL MoorK rA1
ANNUAL o mK TAx

TANNUAl9I NoOmK TAX. O s
Having been requested to prepare an abstract
Of what Is required by law In reference TO the In.
come Tax, and Of the decisions BY the DepSrt'
msnt II w Arlington upon various Questions thht
have arisen, we present the whole subject, under
It's several distinct heads
STATEMENT SHOULD BIZ MADE--wHERr, WHEN,
AND BY WHOM.
MISUNDERSTANDING persono Of law f1l age,'
n, aiding In the United Statos. 20 rendsr 70 the
Assistant Assessor ofthe sue-diir.stin whien No
or abe may be residing on the LIST day ofhay, Q
written statement, according 20 . prescribed
forn. OF the amount Of his or her income, gains
. and profits during the previous year, nom JAN
uary list 70 December 3lst, both day inciutive
A printed blank containing this formcan be OBJ.
tanned from the Assistant Assessor. A person
having no hxed residence, should make . state.
tnent wherever he or she may happen to ooi and,
In case Of removal 10 another district, should take
4 certified copy Of such statement. to show any
other Assistant Assessor. who otherwise might
make a second assessment. ,
9. The statement must be rendered on or be.
fore the LIST day Of May, or within ten days after
written or printed notice requiring II, has been
left at the place of rexdenoe or OF business, or Dc.
posted In tho pearest Post once.
3. The annual income tax 10 q personal tax,
nndit cannotbe assessed agsinstany corporation
| company, or partnership, a. such EVERY indi.
vidual member must make q statement OF MS Or
her share OF or in'ercstin tue gnns ana Prontso
sucb company, ETC., whether such gains and
| uronts are divided zor not and must Aho STATE
separately his or her Income from all other
Hpur~nKs = gE.s H.uEf Hrrs g.. .E.L -
| Evils OF EeLkcT TO MAKE OUT OR VERIFY
| HrE-g. STATEMENTS gTg- |Ha
s n any person ~neglscts or refusesto render Q
written statement, the Assistant Assessor 10 70
\ aussted to All out = blank With such persons
| name, and taxable income estimated according to
the best information that can be obtsined, and
upon this estimated income TO Assess the tax, and
| then to add 25 per cent, to such tax as q penalty
| 6. An Assistant Asssssor may be misled In
| making this estimate, by being mlsinformed a. to
| money received, or not informed an to money
paid. He muit aisess, however, according 70 the
best information within his reach. The only per
son capable Of giving absolutely correct infofma.
\ ton L. frequently the one who refuses or neglecti
to max. 4 statement. II such person win NOT
take the trouble to inform the Assistant Assessor
there IL a bar 10 all complaint. should the aSscss-
ment prove incorrect, and q heavier tax be levied
than would otherwise be charged. Moreover
/ after an assessment has once been made, II GRO
neSus, II is always troublesome TO the party In
terested to have Il corrected. All persons. there
| fore, but s~speeially sIeA a. hare no TAXABLE income
should not fail to render the required statement
| upon the proper blank, 20 ~ to avoid undue tar
alton andtrouble aa4. ...T.Gl
= Every statement must be verified by oath o,
akrmctior. when this Ia not done, the AsIlstanl
Assessor is required to estimate the income ant
TO add 23 per cent to to the tax Es
EVILS OF MAKINa 4 FALSE STATEMENT.
9. An Assistant Assessor has power to inereas
the amount In any statement, after giving du'
Information TO the party interested. he 10 70
quired, also, to add 100 per cent. 10 the tax whei
q false tatement has been rendered and th,
pSrty making the false statement becomes liable
not only for this additional tax, but likewise (
two distinct prosecutonsbefore the United State
Courts-onr for making u false statement with In
tent to defraud the Government, and the othe
for perjury.
MANNER OF AARINo ur STATEMENT OF INCOME
By the llsth section OF the law the Commits
sioner Of Internal Revenue Is empowered to Pre-
scribe the form and nanner In which the state
ment Of income must DO made up. This he hA
done In a printed blank used BY the Assistant A
SCISSOR, andin varioss CIRCULAR and rulfngh gTh
following Is asummary Of what has been pre-
scribed:
l. Each ofthe great classes into which the pull
suits Of life and the investments Of capital hav
been divided must be returned sspdTdtely- losse
In one not being allowedt to offset gains In another
Thus q merchant who engages In farming or i
speculatlons not belonging TO bis legitimate bus
nesscaunct Offset gains In the one by iosses
the other.
Il =. Tne expenses incluent 70 caCn I'M W
deductible from the receipts Of that ousiness.
3. Speculations lt9iitnaisly belonging 10 an,
business, and these alone. may be carried Into II
profit and loss account. Thus broker may spec
ulatei in stocks, a dry goods merchant In cotton,
hardware man In Iron, etc, and sreA speculatio
may affect the gaia and 0ss Of sheA lesttmet
business. A merchant also may make or lose b.
exchange or the kind Of money paid for bis mel
4 ehandlse, and this gain or loss belong s. 10 bis mel
ehandise account. Bntifhe buys gold, uncurren
money, United States Treasury notes or an,
other thing not one ofthe articles Of trade belong
Ing to his regular business, for the purpose Q
speculation, the profit or loss from such speculs
ton will not be allowedto affect the proht or los
from his regular business. A business FRI
placed 10000 In the hands VI = New York orS
ker, lnstrueting him to use It In the purchaser
sale Of gold. on their account and having loi
e27, 500 In this venture, they claimed mat
should be deducted from their prohtSin business
Commissioner Lewis disallowed the claim, an
said the 1niforn ruling had been that "vheu
loss ID made Ia any particular business, AGAIN.
which there are no gains 10 onset, IL - eonrit
cred = decd loss Of capital ispt,tsd In hat bus
nsss." Again, "ioss OF capital cannot be d.
|, ductedfrom income" "Return'of moons mui
be made on the Sstss"s
4. How far different kinds Of business must b
returned separately Is shown BY the followin
rulings Of Commisaioner Rollins;
(a)-"Loss incurredin the prosecution OF on
hfad Of business cannot be deducted from gain !
business Of an satireiy dt6sr0tiehardae, nor ffoi
salary, rents, dividends. etc
n)-"Losses incurred In the prosecution OF on
branch Of business cannot be deducted from gal
In another, since an absolute loss incurred in u
!. prosecution Of q single buSinesst 10 indispensabl
aloss Of capital"
n)-"Losses In merchandise can Be- deducte
only from gains In merchandise but. In thiscas'
particular branches Of merchandise need not b
separated. So In speculation, the loss or gal