The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-04-03
The New Income and Special Tax Laws
Instructions from the Commissioners
Of Internal Revenue-ImpOrtant
Changes Announced, Etc.

VI,
REvENUE, WASHINGTON, March 8, ls67.-It is
provided by the act OF March 2, 1867 chat all
acts in relation to the assessment, return, col
lection. and payment of the income tax, special
tax, and other annual taxes heretofore by law
required to be performed in the month of May
shall hereafter be performed on the correspond
ing days in the month of March IN each year;
all acts required to be performed in the month
fJune IN relation to the collection, return, and
payment of said taxes, shall hereafter be per-
formed on the corresponding days ofthe months
of April of each year,
All special taxes are to be reckoned, as here.
tofore, from the first day of May, or from the
time of commencing the business subject to
tax, to the first day of May following, although
stated
1t is also provided that the taxes on income
for the year 1866 shall be levied on the day this
act takes etfeCt.n
The following instructions should be observed
in the assessment of the annual taxes of 1867.
They have been prepared and printed to answer
the questions which have been most frequently
presented by revenue officers In their letters to
the Commissioner.
Particular attention is directed to the modif-
cation of the rules observed in the last annual
assessment.
Assessors should instruct their assistants to
call personally upon those who have not re-
turned their income as required by law. If
any person is not at home, the notice on the
back of form twenty-four should be filed out,
and the blank left. This being done, it becomes
the duty Of the taxpayer to seek the assistant
assessor and deliver his return.
L. A. ROLLINS, Commissioner.
Income.
IL. Where physicians are obliged to keep q
horse for the transaction of business, they
may deduct so much of the expense so incurred
as is fairly referable to the business done.
IL. Expenses for medical attendance, store
bills, etc., are not proper subjects for deduction.
Expenses for repairs of implements, tools, ETC.,
used in business may be deducted.
ID. If the members of a family have sepa-
rate incomes, the returns may be made sepa-
| rately by the proper parties, and ratable pro-
| portion of the $1,000 exempted from the income
| of each. The parent, as the natural guardian
| of the minor child, is required to make return
| for him. But where any other guardian or
trustee has been appointed, the return should
be made by the latter If the minor has no
guardian or trustee, he should make return him
SELF If he refuse or eglect, an independent
assessment must be made as in other cases.
emitting penalty.
10. For the purposes of the exemption of one
thousand dollars, husband and wife are TO be
regarded as members of the same family, though
living separate, unless separated by divorce or
other operation Of law so as to break up the
family relation. Minor children and their
parents should be counted members of the same
family, whether living together or not.
l6 II a taxpayer has minor child in the SER
vice OF the Government receiving a salary such
parent should include in his income return so
much OF the salary of his child as is not subject
to salary tax.
IT, Rent Of homestead actually paid may be
deducted, but the rental value Of property
owned by the taxpayer is not subject of de-
duction; but where the taxpayer rents a fur.
nished house, that portion of the rent paid in
consideration of the use of the furniture Should
not be allowed as deduction
ANY person claiming deduction on account
OF expense for room rent must satisfy the as.
sessor that the room or rooms occupied by him
constitute his home, and that he has no resi-
dence elsewhere, and this being shown, he NAV
be allowed to deduct what he actually pays for
rent OF such rooms, but nothing can be allowed
Tor rent of furniture or care of rooms When
rent Is included and deducted as an expense of
business, 1t must not be again deducted as rent
nor should person hiring a house and suh
letting portion of it be allowed to deduct
more than the excess of his payments over his
receipts.
Is. Marriage fees, gifts from members of a
congregation to their pastor, ETC.. are taxable as
income when the gifts or donations are in the
nature of compensation for services rendered
whether In accordance with an understanding
TO that effect at the time of settlement, or with
an annual custom.
10. Gifts of money, when clearly not in tho
nature OF payment for services rendered. or
other valuable consideration, are not liable To
taxation as income. Amounts received on life
insurance policies, and damages recovered in
actions OF tort are exempt from income tax
20. Lawyers and physicians may return either
the actual fees received during the year. with
o 0ut regard 10 the time when they accrued, or
the amounts due to the business of the wear.
But when the taxpayer has heretofore adopted
one method, he cannot now be allowed to make
use of the other.
2l. If the manufacturer or dealer has been in
the practice OF estimating his annual profits bV
taking inventories of stock, he should take the
cost value of such stock, unless he has taken
the market value in making previous retnrns
Whichever method has been adopted bv the
taxpayer should be adhered to uniformly.
%. If interest accrued during the wear nm
notes, bonds ETC., is good and collectable at
the end OF the year, 1t should be returned as
income, whether actually collected or not,
%. The fact that income is devoted In the
payment OF debts does not release the same
from liability to income tax.
a. II an inventor sell his invention at once
for gross sum, he should return as income the
whole amount, less the expenses actually incur
red In perfecting the invention, or in procuring
a patent right. But no allowance can be made
Ior the labor or personal expenses of the inven-
tor. II he sell only a portion OF his right
ouIlpg the year, he may deduct proportionate
amount OF such expense.
20. wherever the salary or pay received by
any person In Government employ does not ex-
ceed the rate of $1,000 per annum or Is made up
OF Iees, or is uncertain or irregular In the
amount or time, and has not therefore been
subjected TO salary tax, 1t should be included
with other taxable income. Where such salary
exceeds the rate of $1,000 per annum, the amount
OF salary from which the tax has been ae-
Quoted may be deducted from the gross income.
H. 80 AWnA