Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1867-04-10
ABSTRACT OF rHE ANNUAL INCOME rAx
ANNUAL INCOME TAX.

hENSVuxn LAAs Va.
-
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 Depart
ment At Washington upon various questions that
have arisen, we present the whole subject, under
Its several distinct heads:
STATEMENT sHoULD BIZ MLpr-wHERH, WHEN,
AND By HON.
j. Thelaw requires every person Of law ful age,
| residing In the United States, to render to the
Assistant Assessor ofthesub-distr-ct In which he
or she may be residing on the LIST day OF May, n
| written statement, according TO \ prescribed
form, OF the amount Of his or her income, gains
and profits during the previous year, from Jan.
! nary LIST to December 3lst, both days inclusive.
A printed blank containing this form can be OBJ
tanned from the Assistant Assessor. A person
having no fixed residence, should make a state
ment wherever be or she may happen TO be; and,
In case cfremoval TO another district, should take
a certified copy Of such statement to show any
other Assistant Assessor, who otherwise might
make n second assessment.
.. The statement must be rendered on or be-
fore the LIST day Of May, or within ten days after
a written or printed notice requiring II, has been
let at the place of residence or Of business, or de-
posted In the pearest Post Office.
3. The annual income tax IL n personal tax,
and 1t canuotbs assessed against any corporation,
company, or partnership, az such. Every indi'
yiduAl member must make q statement OF his or
her share OF Or interest In the gains and PROFITS OF
such company, ETC., whether such gains and
profits are divided or not, and must also state
separately his or her income from all other
sources
EVILS OF NEGLECT TO MAKE OUT OR VERIFY
STATEMENTS
5 II any person neglects or refuses to render
written statement, the Assistant Assessor In re'
auested TO ill out a blank with such persons
name, and taxable income estimated according to
the best Information that can be obtained and
upon this estimated income to ASSESS the tax, and
then to add 25 per cent, to such tax rs u penalty
for neglect or refusal.
G. An Assistant Assessor may be misled In
making this estimate, by being misinformed a. TO
money received, or not informed as to money
paid. He must assess, however, according TO the
estinformatIon within bis reach. The only per.
aon capable Of giving absolutely correct informa'
ton IL frequently the one who refuses or neglects
TO make a statement. II such person will not
take the trouble to inform the Assistant Assessor,
there Is q bar TO all complaint. should the assess.
msnt prove Incorrect, and q heavier tax belevied
than would otherwise be charged. Moreover,
after an assessment has once been made, II. erro
neSus, Il is always troublesome TO the party In.
terested TO have Il corrected. All persons, there.
fore, but especially sHcA as hare no tdrdbh Income,
should not fail to render the required statement,
upon the proper blank, no a. TO avoid undue tax
alton sndtrouble
7. Every statemen must be verified by oath or
Affirmation. When this IL not done, tho Assistant
Assessor is required to estimate the income and
to add IS per cent. to to the tax.
EVILS OF MAKING A FALSE STATEMENT.
9. An Assistant Assessor has power TO increase
the amount In any statement, after giving due
information to the party interested. He IL re.
quired. also. to add 100 per cent. TO the tax when
y false statement has been rendered and the
party making the false statement becomes liable,
no, only for this additional tax. but likewise to
two distinct prosecutionsb before the United States
ia ln
tent to defraud the Government, and the other
for perjury.
MANNER OF aAKIso Up STATEMENT OF INCOME.
BY the llsth section Of the law, the Commits
xioner OF Internal Revenue is 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 vanoSs circulars and rulings. The
| following Is n summary Of what has been pre-.
scrbed:
l. Esch Of the great classes into which the pur.
suits Of life and the Investments Of capital have
been divided must be returned sepdraisly- losses
In one not being allowed to Offset gains In another.
Thus a merchant who engages in farming or in
speculstlons not belonging to his legitimate bust.
ness cannot Offset gains in the one BY losses in
the other.
!. The expenses incident to each business are
deductible from the receipts Of that business.
3. Speculations Issitinstely belonging to any
| Ouhlutbt, anu 0uC Why auho W
profit and loss account. Thus a broker may spec.
ulate In stocks. a dry goods merchant In cotton, a
hardware man In iron, etc. and SUCH speculation
may affect the gain and loss Of such legitimate
business. A merchant also may make or lose by
exchange or the kind Of money paid for his mer.
chandise, and thiA gain or loss belongs to his mer.
chandise account. But II he buys gold, uncurrent
money, United States Treasury notes, or any
other thing not one ofthe articles Of trade belong.
ing to his regular business, for the purpose Of
---nA -. - anzk 49,. Il
ton will not be allowed to affect the profit or loss
from his regular business. A business firm
placed $40. 900 in the hands Of q New York bro.
ker, instructing him to use II In the purchase and
sale Of gold, on their account; and having lost
s27. 800 In this venture, they claimed that It
should be deducted from their proftsin business
Commissioner Lewis disallowed the claim. and
said the uniform ruling had been that "vhen a
loss IL made In any particular business, against
which there are no gains TO Offset, II Is consld.
cred a dead loss Of capital inrsstsd In that bust.
ness" Again, "loEs Of capital cannot be de-
Quoted from income Return Of income must
DO made on the 1aiaL."
4. How far different kinds Of business must be
returned separately Is shown by the following
rulings Of Commissioner Rollins:
(a)-"Loss incurred In the prosecution of one
kind Of business cannot be deducted from gain In
business Of an entirely dtGreateAaroeter, nor from
salary, rents, dividends. etc
N-"Losses incurred In the prosecution Of one
oraHeA OF business cannon DC deaueteo rom gam
In another since an aosolutei oss incurred IN ,ne
prosecution OF single business IL indispensaoIy
aloss OF eapitaL.
0--Lo losses IN mercu ansse IAN az. " y .s,.n""s
only ISm an ~ mar.hsnd,ss md NO, h,
particular orsncneso OF meISnan. ~ nocu y n
separated. 50 IN speeuiason, sMo .os m =. snn
nom stoess may onso' san "o"p 'ouu''
speeuiatsa H., ,x, -, ,hs,,
seienuaAns. III. .,,hor, ransrd % ,bsir
pronts nom meienAnalse mi.1ous resau . sieI
lossesin speculation, OF 8ainsIoI in'ei'''u'f
dends, rents or any otner source.
Losses IN specuiaton eann0. DC GeuuStea
IRON sa'Aiies, y, u TO- , .n.cnia,ion ard
When losses are sustained IN one specuIa,on ana
gains made In another specuia.on; sucn iosses
may De deducted from sucn cams Lossesi ono
branch OF mercnsnaise may oe ueaue.e" "on
gains In any otner oIancn OF me,euanuisc.
Where Stocks, e.c., are oousn. : pea,
nanent investment, ana SOFA ssan msreIy w
change the INVESTMENT; = loss su nnaslS n u
SAFE may Dc aeuuS.eu rom = ~ m.da Tor
stea s'ocH. buI Tneso an1 nu sne,n,a,,on ~.
rue purpose VI SEEMING 1snu w