The Daily clarion. [volume] (Jackson, Miss.) 1866-1888, 1867-05-10

How Internal Revenue II 10 be
Collected this Near.
Official Instructions from Commissioner
Il f.t Rollins. IN
The amended Internal Revenue Law is
now in operation, and tho following in
structions to the assessors. issued by Com
missioner Rollins, will serve as useful guides
to tax payersi
TREASURY DEPARTMENT., ar NJ
/ OFFICE OF INTERNAL REVENUE,
Washington, March 0, 1867. }
II is provided by tho act of March 2, 1867,
"thht all acts in relation to the assessment,
return, collection 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 per-
formed on the corresponding days In the
month Of March in each yeari all acts re-
| quired tdsbe performed in the month otJun
in relation to the collection, return and pay
ment of said taxes, shall hereafter be per-
formed on the corresponding days Of the
month of April of each year. eM
All special taxes arc to be reckoned, as
heretofore, from the first day of May, or from
the time of commencing the business sub
|
although the time of assessment is changed
as above stated
1t Is also provided that the taxes on the
income for the year 1866 shall be levied on
the day this act takes effect"
The following instructions should BIO OBJ
served in the assessment of the annual taxes
of 1867 They have been prepared and
printed to answer tho questions which have
been most frequently presented by revenue
klt..n tania aif
Particular attention is directed to the
1 modification of the rules observed in the
last annual assessment.
1 Assessors should instruct their assistants
to call personally upon those who have not
returned their income as required by law
| If any person is not at home, the notice on
the back of form twenty-four should he Tiled
out, aud the blank left. This being done, 1t
! becomes the duty OF the tax payer to seek
/ the assistant assessor and deliver his return
ETA. ROLLINS, Commissioner.
INCOME.
]. The fsrmer's profits from sales OF liyc
| stock are to be found by deducting from the
/ gross receipts for animals sold, the purchase
money paid for the same.
/ 2. No deduction can be made by tue far
mer for the value of services rendered by his
minor children, whether he actually pays
l
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 BIO deduct
| ed
] a. Deduction can be allowed in any case
for the cost OF unproductive labor. II 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.
5, Expenses for ditching and clearing
new land are plainly expenses for permanent
improvements, and not deductable.
g. The whole amount expended for fer
tilizers, applied during the year to the
farmers land may be deducted. but no de-
duction is allowed for fertilizers produced
on the farm. The cost of seed purchased for
Ssowing 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
thus obtained deducting the estimated value |
OF the land on the first day of January, 1862, |
or on the day ofpurchase, if purchased since
that date.
9. A farmer should make return of al his |
produce sold within the year but mere |
executory contract for a sale is not a sale;
delivery, either actual or constructive, is |
essential 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--lf |
the property were lost or destroyed, upon
which of the parties in the absence of any
other relation between them than that of
vendor aud vendee, would the loss fall.
10. Taxpayers frequently claim deduc-
tions 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
q loss realized.
H. Costs of suits and other legal proceed
ings, arising from ordinary business are to
be treated as other expenses of such bust
ness and may DO deducted from the gross
profits thereof.
PHYsIcIANs.
l2 Where physicians are obliged to keep
a horse for the transaction Of business, they
may deduct SO much of the expense so
incurred as is fairly referable to the business
done.
10. Expenses for medicals attendance,
store bills, &c, are not proper subjects for
Expenses for repairs Of imple-
nents, tools, &c, used in business may be
a. If the members of a family have
separate incomes, the returns may be made
separately by the proper parties and a rata
lie proportion of the $1,000 exempted from
he income of each. The parent as the
natural guardian of the minor child, is
equired to make return for him. But .
where any other guardian or trustee has J
,een appointed, the return should be made =
" the latter If the minor has no guardian or : :
rustee, he should make return himself If
10 refuse or neglect, an independent assess ,
nent must be made as in other cases, omit y
ing penalty. !!
Is For the purposes ofsthe exemption of y
ne thousand dollars, husband and wife are
o be regarded as members of the same fami-
y though living separate, unless separated
Y divorce or other operation OF law, so as TO y
reak up the family relation Minor chill !,
rem and their parents should be counted =
lembers of the same family, whether living a
Dgether or not. q
is. If taxpayer has minor child in
40 service of the government receiving tt
llary, such parent should include in his in ii
1me return so much of the salary of his tC
lild as is not subject to salary tax. b,
IL. Rent of homestead actually paid d.
ay be deducted, but tho rental value of
roperty owned by taxpayer is not a lii
Inject of deduction; but where the tax ia
lyer rents furnished house, that portion cl
the rent paid in consideration of the use OF
the furniture should not be allowed as a til
,duction. l eli
Any persons claiming deduction on ac- &c
unit of expense for room rent must satisfy
e assessor that the room or rooms occupi- ex
by him constitute his home, and that he WI
IS no residence elsewhere, and this being sh
own, he may be allowed to deduct what he pa
tually pays for rent of such rooms, but
thing can be allowed for rent of furniture tn
care ofrooms. When rent is included and sti
Quoted rs an expense of business, it must -.
{ be again deducted as rent, nor should OO'
rson hiring a house and subletting me
rtion of IL he allowed TO deduct more than De
c excess of his payments over his receipts.
lS. Marriage fees, gifts from members of ag
congregation to their pastor &., are taxa dn
, as income when the gifts or donations die
} in the nature OF compensation for servi- cui
xrhofhar in nil /