Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1867-04-13
ABSTRACT OF rHE ANNUAL NcoaR rAx
ANNUAL o TAX.

ANNUAL TAX. y
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 tho Depart
ment at Washington upon various questions that
have arisen. we present the whole subject. under
It's several distinct heads:
STATEMENT SHOULD BE MADE-wHERr, WHEN,
N BY WHOM. .-FE-H 4
1. The law requires every person Of lawfuiage,
residing In the United States, to render to tho
Assistant Assessor ofthe sub-distrct In which he
or she may be residing on the LIST day OF May, q
written statement, according to o prescribed
form, of the amount Of his or her income, gains
and profits during the previous year, from jan
uary LIST to December 3lst, both daysinclusive.
A printed blank containing this form can be, OBJ
tanned from the Assistant Assessor, A person
having no hxed residence, should max a state.
ment wherever he or she may happen to DO; and,
In case Of removal to another district, should take
q certified copy Of such statement. TO show any
other Assistant Assessor, who otherwise might
make u second assessment. .hAan r.. U'
Q. 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
left at the place OF residence or ofbusiness. or de-.
posted In the pearest Post Office.
3 The annual income tax Is a personal TAX,
and IL cannotbc assessed agsinsta any corporation,
company, or partnership, as such. Every indi'
vidual member mvst mako q statement OF MS or
her share Of or iuterestin the gains and profts OF
such company, etc. whether sueh gains ana
profits are divided or not, and must also state
separately his or her income from all other
sources.
EVILS OF HEaLEcT TO MAKE OUT OR VERIFY
STATEMENTS
8. II any person negleets or refusest to render n
written statement. the Assistant Assessor ID re-
auested TO hl out q blank with such persons
| name, aud taxable income estimated according to
Il A.. -, l.f..,,atio,, sh.t nam ha nhtainfd. And
| upon this estimated income to assess the tax, and
then TO add IS per cent, TO such tax as a penalty
for neglect or refusal. 5000. ]
6. An Assistant Assessor may be misled In
making this estimate. by being mixinformed ~ to
money received, or not informed M TO money
| paid. He must asscss. however, according to the
best information within his reach. The only per.
| son capable Of giving absolutely correct informa-
| tion 10 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 = bar to all complaint. should the assess.
ment prove incorrect, and q heavier tax believed
| than would otherwise be charged. Moreover,
after an assessment has once been made, II erro
neSus, II Is always troublesome TO the party In
terested to have Il corrected. All persons, there
fore, but especially such a. hdre no taxable Income.
should no, fall to render the required statement,
upon the proper blank, 80 a. to avoid undue tax
alton Rndtrouble.
I. Every abatement must be verified by oath or
1 dJVNthttON- thibA q wv - NV
Assessor Ia required to estimate the income and
to add 25 per cent to to the tax.
EVILS OF NAMING A FALsE STATEMENT.
9, An Assistant Assessor has power TO increase
the amount In any statement, after giving duo
information TO the party interested. Ho IL re-
auired, also. TO add 100 per cent. to the tax when
= false statement has been rendered and the
party making the false statement becomes liable,
| not only for this additional tax. but likewise to
two distinct prosecutionsbefore the United States
Courts-onr for making q false statement with In.
| tent to defraud the Government, and the other
for perjury.
| MANNER OF MAKING UP STATEMENT OF INCOME.
By the llsth section Of the law, the Commits.
sioner Of Internal Revenue is empowered TO pre-.
scribe the form and manner In which the state.
| ment Of income must be made up. This he has
done In q printed blank used BY the Assistant As.
SCISSOR. and in vanous circulars and rulings. The
following Is a summary Of what has been pre-
scribed:
l. Each ofthe great classes into which the pur.
suits Of life and the investments OF capital have
| been divided must b. returned sepordfsiy- losses
In one not being allowed to Offset gains In another.
Thus q merchant who engages In farming or In
speeulations not belonging to hislegitimste busl.
meas cannot Offset gains In the ono BY losses In
the other.
. The expenses incident 10 each business are
| deductible from the receipts Of that business.
3. Speculatlons ls3ftfmaisly belonging to any
business, and these alone. may be carried into Its
profit and loss account. Thus q broker may spec.
ulste in stocks, a dry goods merchant In cotton, q
hardware man In Iron. etc, and sach speculation
may affect the gaia and loss Of sneh legitimate
business. A merchant also may make or lose by
exchange or the klnd Of money paid for his mer'
| chandise, and this 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.
----1-. IL t. H.
speculation, the profit or loss from such specula.
| ton will not be sllowedto affect the profit or loss
| from his regular business. A business firm
| placed ei0,0 900 In the hands Of q Now York bro.
| ker, instructing him to use II In the purchase and
sale Of gold, on their account and having lost
| s27, 500 In this venture. they claimed that IL
| should be deducted from their profits In business.
| Commissioner Lewis disallowed the claim, and
| said the uniform ruling had been that "vhen Q
loss IL made In any particular business, against
which there are no gains TO Offset, 1t Is eonsid.
| cred n dead lose Of capital Inverted IN that 6usi.
nsss." Again, "loss Of capital cannot BIO de.
| Quoted from income Return Of income must
| be made on the 9ainG."
4. How far different kinds Of business must DO
| returned separately Is shown by the following
| rulings OF Commiskoner Rollins:
(d)-"Loss incurred In the prosecution OF one
| Hnd Of business cannot be deducted from gain In
business Of an entirely dt6renteharaeter, nor from
salary. rents, dividends, etc
= - a 49,
(o)IE ossesineuriea |. u ns,.S s.nO liz
orahea OF ousiness oannoi 70 !. ~.
N anotner, s1ee In ,sS Smsiu.". :. IuSisnsn.shIv
pI"o nant,."
= p.s. In n.rcbardi., ran h. isduc,sd
onNg t,om ain. In msrchsndIse . INIT In thIs cas-.
~ sranebss N m.rchandIse mead moi bs
pMta. s g ~ .n..ria,Ion tho los ~ c.Jn
sepni s,eo m.H ossst io.s or .sIn from produce
.N".,,s,sd ~ -"
psS""M INNS. maxi, r.turn OF thar
Ia. ~ rn.rcbandJ,. EI,hout ,so.rd N thsI,
Plon.s nom istSon ~ s.,rs S.om IStsra.t di.I.
Iossssin 1890 .orr.o"
'ouH''. az go n :nscnia,Ion cannot bs dsduc,.d
w.. .,I.r,s. nor rom asins In m.rchandise
W. go. n, .p.tsInsd In one specniatIon and
wien Iosses arc su.tnuou ~ Unv .nah ios.o.
sans msas ;. oen nIS oains ins... IN nns
may De ueaasto% suens " =. a!Ju.,"s 49,
orancn OF me,enanase msy = uooIsu """
gains In any otnci oiancn Oh me,onanuise.
- Wnore stoeks, cue, ny oousnt % pr.
manent Investment, ana soia ssa.n MERRY ~
enange .ns inres.meS'; : ,o ~. 'd dtvsdnNd. n t-o ~
smJ ~ = pnt -hsr. tbs nnrchss. Ia mnds for
&c" ssoes. .'uIen 80 ~ .ns.r,a,ion an.
!. ps,n.S hw an ssis eannot bs dsdnct,S
80 sa"N yS..h !. S.Sns,.S g. a.,n.
run uifiuehus, NC $1,000