Fisherman & farmer. [volume] (Edenton, N.C.) 1887-19??, 1894-12-21
THE INCOME TAX RULES.
REPRESENTATIONS ISSUED BY
SECRETARY CARLISLE.
What the Tax is to Be Levied Upon
and How Returns Are to Be Made
Exemptions, Penalties and APP
peals-Instructions to Collectors
Incomes Over $4,000 Taxed.


The Secretary OF the Treasury approved
the income tax regulations. Every citi-
gen Of the United States, whether residing
at home or abroad, and every person re-
siding or doing bushes in the United States.
who has an annual income Of more than
$500. Is required TO mako return. under
oath, before the first Monday in March OF
each year. The first return is to include all
income received in the year 1894, trom jan
uary | to December 81. Guar iians, trus-
. tees, and ali corporations acting IN any
fd2ciary capacity are required to make SIM
liar returns for minors, wards or benehc-
iaries. Persons having less than $4,000 an
nual income are not required 70 make re-
turns. All ircomes of 1900 and over are
taxable two per cent.
The person making return is required TO
make affidavit that he has included IN said
return all gains, profits and income from
every source received by him, or to which
he is Justly entitled for that year. and that
he is honestly and truly entitled to make all
the deductions entered on his return, and
that he has truly answered the interroga-
tories set forth on said blank form.
The gross gains, profit and income re-
turned by persons are to include: Gross
profits of any trade or business, wherever
carried on rents received or accrued dur
ing the year profits from sales OF real es-
tate purchased within two years; farming
operations and proceeds; money and value
of all personal property acquired by gift or
inheritance premiums on bonds, stocks,
notes and coupons; income from
trade or profession not by stat
ed salary and not heretofore enumer-
ated; from salary or compensation
other than that received from the United
States from salary or compensation paid by
the United States undivided gains and
profits of any partnership; interest received
or accrued from all notes, bonds, or other
securities interest on bonds or coupons
paid of any corporation; dividends from
corporations income Of wife or minor child
or children all other sources of income not
above enumerated.
The deductions allowed on the return are ::
Four thousand dollars exempt by law inter-
est due and paid Within the year National,
State county. school, and municipal taxes
paid, not including assessments for local
benefits amount expended in purchase or
production of live stock or produce sold
within the year necessary expenses specified
by items actually incurred in carrying on
any business or trade; losses actually sus-
tanned during the year, spec1fed; actual
losses on sales Of real estate purchased with
in two years debts contracted and ascer-
tanned in the year to be WOrthl ess salary or
compensation over $4,000 from which the
tax o. two per centum has been withheld by
disburs Nc officers of the United States Gov
prnment; dividends included in the esti-
which the two per cent. tax has been paid
by such corporation.
If any person fails to make return Or
makes false return, the collector is to make
returns for him from evidence obtained by
summOning the person and examining his
books. and from all other evidence obtain
able, and shall add fifty per cent. to the
amount of tax found due as a penalty for
neglect and 100 per cent. penalty in case OF
q fraudulent return.
All corporations, companies and assocfa-
tions, both resident and foreign, doing bust
ness in the United States, are required to
make annual return OF net profits on sep
arate blank to cover the calendar year 1894.
The exemption OF $4,000 allowed to persons
is not extended to corporations, but the re-
turn must cover all net profits without ex-
emption.
include: The gross profits from all kinds of
business, the expenses. exclusive Of interest,
annuities or dividends the net profits with
out allowances for interest, annuties or
dividend the amount paid Cd account ofin-
tprpst, annuities and dividends; the amount
paid in salaries of $4,000 or less to each en-
ploye; the amount paid in salaries of more
than $4,000 10 each employe, and the name
and address of each OF such employe.
The gross profits must include: All profits
of any trade or business; interest or cou-
pOns from bonds or other securities of any
corporation dividends received fro any
corporation; undivided profits Of any cor
pOration premium bonds. notes, or
stocks commission or percentage; interest
on Government securities, not exempt by
law interest on other notes, bonds, and Sc
curties profits from sales of real estate
and from rents; profits from all other
sources, to be enumerated.
The operating expenses must include in
tereSt paid or accrued within the year on
bonded or other Indebtedness of such cor
the year. which must be separately stated
and fully described as to cause, date and
amount all taxes actually paid; salaries
and pay of officers and employees actually
paid during the year; rents and necessary
repairs all other necessary expenses, which
must be itemlzed and fully explained in the
return.
The net profits are to include all amounts
paid to stockholders or shareholders the
amc unit of undivided profits carried to sur
plus or any other fund amount OF net prof.
its used for construction, enlargement or
Improvement of plant all other expendi-
lures or investments from the net profits.
Certain specified corporations for charit-
able and like purposes and certain savings
banks, mutual insurance companies, and
building and loan associations are exempt
from income tax. In such cases it is held by
the department that the intention of the ex-
cmption is to extend its benefits to the small
dep ositors and benefciaries of such mutual
and savings institutions, and that the corpo-
ratiOns, as such, and those who speculate in
the shares. stock or funds are not the in
tended benefcaries Of the exemption.
Collectors are required to examine the
articles of interpretations and business meth
Ois of corporations claiming exemption, and
where such are not within the class specii-
calIy exempt, 10 cause return TO be made for
taxation, as IN the case of other corpora
tiOns.
The tax due from salaries of officers and
from pay OF employees Of the United States Is
to be deducted from the first excess pay
ment over $4,000 by paYmasters and disburs-
ing officers.
1t is provided that no part OF the salary,
fees, or emoluments OF any State, county,
or municipal officer shall be subject to in
come tax, and no return thereof shall be
made of the salary or fees OF such officers.
Salary received by Government officials in
1894 shall be included in the first annual re-
turn to be made on or before the first Mon
day in March, 1895.
Appeals, in the first instance, are to be
made by dissatisfied taxpayers to the col
lector, and, if dissatisfied with his decision,
the appellant may have the entire cause,
with all papers and evidence relating there
to, transferred to the Commissioner of In
ternal Revenue for his decision.
Severe penalties are imposed upon all Of
fcers and others who make known. in any
manner, any fact or particulars contained in
or relating to an annual return of any tax
payer. or any fact as to the sources or
amount of the income of any such person.
Collectors are strictly directed blythe regula
tons to rigidly enforce this provision.
The tax on incomes for the year 1894 will
be due and payable before the first day Of
July next, and if not paid at that time the
penalties will attach for non-payment.
The full text of the regulations contains
about Is. 900 words.