The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-04-11
INTERNAL REVENUE.
Important Circular Concerning Returns
Of Taxes on Deposits, Capital and Cir
culatiOn of Banks.


culatiOn of Banks.
WASHINGTON, April 10, 1873.
The Commissioner OF Internal Revenue to-day
issued the following important circular concerning
returns OF taxes on deposits, capital and circula-
ton OF banks &C., as required by amended legsla-
ton OF the last session Of Congress. 1t is fol-
lows
Section OF the act OF December "a, 1872 pro-
vides that the returns OF taxes imposed by section
ITO OF the act Of June &c. 1854, as subsequently
amended, shall be made and rendered simi-an-
nualy, on the LIST day OF December and the LIST day
transmitted to the Collector OF the proper dis
trict, and one copy to the Commissioner
he ne N June describes sc'on 81 Of
these taxes on the first days of January and July.
1t will be seen that the regular returns by banks
Of deposits circulation and capital and the re-
turns Of savings banks which, but Tor the act OF
December "a, 1872 would have been due in Jan
uary, 1873, cannot now be required before June |,
1873. In ascertanng the taxable amount OF de-
posts Ia savings institutions having no capital
stock and doing no other business than receiving
deposits 10 be loaned invested for the sole ben
eft of the parties making such deposits without
profit or compensation to the association or COM
any one person are TO be included excepting that
where any period prior to August 1, 1872,
savings bank. The exemption OF deposits for such
period prior 10 August l. 1873, extends only to de-
posits OF less than $500 IN the name OF any one
person. The amount OF deposits invested In United
States securities ~ exempt rom assessment.
The term United states securities includes only in
terest-bearing Obligations OF the United States,
owned and held by the bank as an investment.
The average of monthly deposits subject to tax
must be made up RON the daily balances OF de-
posts, by adding the daily balances OF each busi-
ness day in the month and dividing the aggregate
by the number OF business days In said month.
The "baancen OF deposits OF each day, which is
thus first to be ascertained, Is the entire
amount OF deposits remaining to the creait
OF depositors at the close OF business
for the uay. But the balance of deposits OF each
day in the case OF the savings banks above de-
scribed, subject to tax, Is the entire amount OF
deposits remaining to the credit Of depositors at
amount OF deposits at that time held as an invest
ment in United states securities; second amounts
OF $4,000 or under in the name OF any one person.
Section OF the act of March 70, 1867,
provides that "every national banking ASSOC
citation, State bank or banker, or association
shall pay a tax of ten per cent on the amount
OF notes OF any town, city or municipal corporation
paid out by them after May l, 1867, 10 De collected
I'm the mode and manner IN which the tax on the
notes OF State banks IL collected" IL Is pre-
same forms as returns OF tax or deposits, capital
and circulation, and at the same times, and that
the taxes shall be collected at the same times as
those fixed for the collection OF taxes onsdeposits,
capital and circulation In view OF the provisions
OF section OF the act OF December "a 1872, trans
revenue, at the time therein mentioned,
10 be performed by them or tAeir deputies,
the duties heretofore imposed on asses
sors and assistant assessors, collectors
will at once order from this Office a sufficient num-
Der OF the necessary forms-6T ana l06-ts meet the
respective districts and will take particular care
that each OF the said taxpayers be supplied with
sufficient numDer OF copies thereof In ample season
to make the returns above mentioned.