The Tipton advertiser. [volume] (Tipton, Cedar Co., Iowa) 1856-1962, 1871-04-06
The Income Tax for 1870.

By the Internal revenue laws, aS |
amended in 1870, it is the duty of every |
citizen whose gross income last year ex.
ceeded two thousand dollars, to make
and render to the Assistant Assessor OF
the division in which he lives, a return
of this income for taxation OH or before
the / It Of March. The neglect 20 do
this leaves it in the power Of the Asses
sor to make return for him according
to the best information he can obtain,
and to Increase the amount Of tax fifty
per cent. as a penalty for the neglect
The duty Of making these returns has
been very generally neglected, under
the expectation that Congress would
abolish the tax, but 1t in now improba-
BILE that any thing will be done at the
present session, and in order to avoid
the penalty, citizens can not be too
prompt III handing in their returns.
The taxable income of each person is
determined by adding together the fol-
lowing items:
The gains or profits Of business for
the year, the wages or salery received
FOR services from any Government, cor
poration of other employer; The rents
received from houses or lands; the in
terest on notes, bonds or mortgages,
or money lent or Oh security /; the
profits or speculation in stocks,
bonds or gold, and those obtained upon
the sale of any houses or lands during
the year which had been purchased
within two years preceding, and the
dividends upon stocks or shares, except
that off the dividends corporations
which have themselves withheld the tax
from stockholders, aud paid it to the
United States, are not to be included,
nor that part of the salery of officers of
the United States frow which the tax
has been deducted, at the time of pay
ment, nor amy pension paid to soldier
or sailor.
From the aggregate income, IS thus
determined, each tax payer will deduct
the national, State, county and munich.
pal taxes paid by him during the year;
all losses in business, not including any
estimated depreciation of values; the
rent of land for cultivation, and of prem
Uses for business purpoaes, aud the
wages Of labor paid out for business
purposes; the rent of the house and
rooms occupied as residence, but not
the rental value, If owned by the tax
payer himself; aud the amount paid fol
ordinary repairs. but not for permanent
improvements.
The remainder Of the gross income
after these deuctions are made, consti'
tutes the MT income for the year, and
two thousand dollars are further to be
deducted from this amount. The re-
mainder is the taxable income on which
a tax of two and a half per cent. is to be
levied and paid. This tax is due and
payable on or before the 3Oth day o.
April next, and penalty of five pei
cent. upon the amount OF the tax, ant
of interest at the rate of one per cent. {
month, is to be levied for neglect t
make payment ut that time, or within
ten days after the collector shall have
demanded the tax.
The returns of income made this zeal
are not to be published, and the ofii.erl
administering the law are required tt
keep them secret. Nor is any penalt,
to be levied for neglect or error on tht
tax payers part, except after full OPP
portunity is afforded hia to be heard
and to present evidence that he il 10
guilty such neglect or error. Bu
there is no provision in the law requir
ing the Assessors to demand a return
or to notify citizens of their obligation.
to make their returns. Every man j.
supposed to know the law, and failure
to obey ii is such neglect US incurs thu
penalty. 1t will, therefore, be necessa
~ for tax payers to seek their Assistant
Assessors ut once, and tender to then
such statement as We havei described
-Nc,o lo,k Iost. r