The Daily clarion. [volume] (Jackson, Miss.) 1866-1888, 1867-05-12
THE NEW TAX LAW.


NEW HAA Law
How Internal Revenue H. 10 b
Collected this Yenr.
Official Instructions from Commissions
rv Rollins. ass
The amended internal Revenue Law
now in operation, and the following II
structions to the assessors issued by Con
missioner Rollins, will serve as useful guide
to tax payers
TREASURY DEPARTMENT,
OFFICE or INTERNAL REVENUE,
Washington, March 8, 1867.
It is provided BY the act Of March 2, 1861
"that all acts In relation to the assessment
return, collection and payment Of the incom
tax, special tax, and other annual take
heretofore by law required to DO performe
in the month Of May, shall hereafter be pei
formed on the corresponding days in tn
month of March in each year; all acts re
quired to be performed in the month OF Jun
in relation to the collection, return and pay
ment Of said taxes, shall hereafter be per
formed on the corresponding days of tn,
month of April of each year"
All special taxes are to DO reckoned, n
heretofore, from the first day of May, or from
the time of commencing the business sub
ject to tax, to the first day of May following
although the time of assessment is changed
as above stated.
tbs also provided that the taxes on th,
income for the year 1866 shall be levied OF
the day this act takes effect"
The following instructions should be OBJ
served in the assessment of the annual taxel
of 1867. They have been prepared and
H.. khor ftrrta IA oh
been most frequently presented by revenue
officers in their letters to the commissioner
Particular attention is directed to the
modification of the rules observed in the
last annual assessment
Assessors should instruct their assistants
to call personally upon those who have NOT
returned their income as required by law
Ifany 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, 1t
becomes the duty of the tax payer to seek
the assistant assessor and deliver his return.
+. A. ROLLINS, Commissioner.
INCOME.
!. The fsrmer's profits from sales of live
stock are to be found by deducting from the
gross receipts for animals sold, the purchase
money paid for the same.
g. No deduction can be made by the far
minor children, whether he actually pays
for such services or not. If his adult children
work for him and receive compensation for
their labor, they are to be regarded as other
hired laborers in determining his income.
3. Money paid for labor, except such as
is used or employed in domestic service, or
in the production of articles consumed in
the family of the producer, may be deduct
ed.
4. Deduction can be allowed in any case
for the cost of unproductive labor. If house
serva ITS are employed portion of their
time in productive labor, such as the max
ing of butter and cheese for sale, proper
tionate amount of the wages paid them may
be deducted.
S. Expenses for ditching and clearing |
new land are plainly expenses for permanent |
improvements, and not deductable.
6. The whole amount expended for fer
tilizers applied during the year to the
farmers land may be deducted. but no de-
on the farm. The cost Of seed purchased for
sowing or planting may be deducted.
Z. Farmers will not be required to make
return of produce consumed in their own
immediate families.
8. If person sells timber standing the
profits are to be ascertained by estimating
the value of the land after the removal OF
the timber and adding thereto the amount
received for the timber, and from the sum
of the land on the first day of January, 1862,
or on the day ofpurchase, if purchased since
that date.
g. A farmer should make return of all his
produce sold within the year but mere
executory contract for a sale is not a sale;
delivery, either actual or constructive, is
The criterion by which to judge
whether sale is complete or not is to deter
mine whether the vendor still retains in
that character right over the property-ifI
the property were lost or destroyed, upon
which of the parties, in the absence of any
other relation between them than that OF
vendor and vendee, would the loss fall
10. Taxpayers frequently claim deduc-
lions for losses from depreciation in the
value of stock or other property of like
nature No deduction can in any case be
allowed for depreciation of value of such
property until it is actually disposed of and
i loss realized.
ii. Costs of suits and other legal proceed {
ngs, arising from ordinary business are to
70 treated as other expenses of such bust
less and may be deducted from the gross :
,rofts thereof
PHYSICIANS.
I2 Where physicians are obliged to keep h
horse for the transaction of business, they b
nav deduct SO much of tho expense so 4
Incurred as is fairly referable to the business @
one. G
10. Expenses for medicals attendance,
tore bills, &c, are not proper subjects for n
Expenses for repairs of imple- n
tents, TOOLS &c, used in business may be 81
educted D.
Ia. If the members of a family have n
,parate incomes, the returns may be made sc
,parately by the proper parties, and a rata OF
10 proportion of the $1,000 exempted from SC
le income of each. The parent as the M
atural guardian of the minor child, is re
quired to make return for him. But lie
here any other guardian or trustee has al
zen appointed, the return should be made bt
? the latter. If the minor has no guardian or 70
ustee, he should make return himself. If Al
refuse or neglect, an Independent assess bt
emit must be made as in other cases, omit Ii,
ng penalty. lii
Is. For the purposes of the exemption of bI
lie thousand dollars, husband and wife are "a
be regarded as members Of the same fami- Gu
, though living separate, unless separated of
divorce or other operation of law, so as to
eak up the family relation. Minor chill BIZ
EN- and their parents should be counted at
embers of the same family, whether living SD
gether or not.
Is. If q taxpayer has minor child in ia
o service of the government receiving q til
larry, such parent should include in his in to
me return so much of the salary of his BY
lid as is not subject to salary tax. de
IL. Rent of homestead actually paid
ay be deducted, but the rental value of lie
operty owned by taxpayer is not ia
bject of deduction; but where the tax oh
yer rents q furnished house, that portion on
the rent paid in consideration of the use tic
the furniture should not be allowed as eli
duction. de
Any persons claiming deduction on ac-
unit of expense for room rent must satisfy ex
Q assessor that the room or rooms occupi- WI
by him constitute his home, and that he sh
IS no residence elsewhere, and this being pa
own, he may be allowed to deduct what he
tually pays for rent of such rooms, but tn
thing can be allowed for rent of furniture st,
care ofrooms. When rent is included and
'ducted as an expense of business, it must 90
IT be again deducted as rent, nor should a m,
'rson hiring a house and sub-letting q be
triton of it be allowed to deduct more than
9 excess Of his payments over his receipts 40
10. Marriage fees, gifts from members of d1
congregation to their pastor,l&., are taxa al,
Q as income when the gifts or donations en-
o in the nafnra of norupau an f;on fs,v