Highland recorder. (Monterey, Highland County, Va.) 1877-1972, 1894-12-21


a taxable income, he may 80 declare In
printed afldavits on the blink annual re-
turns
All corporations, companies and associ-
atons, both resident and foreign, doing
business for profits in the United States,
shall make annual returns OF all net prohts
above business and operating expenses on
SEPARATE blank prepared for them, and when
duly verified by the oath Of the president, or
other chief officer OF such corporation, inc
return must be delivered to the collector ON
or before the first Monday in March oil eacn
vear The first return of corporations snail
cover all net profits, and income for the
calendar yeer 1894 The exemption OF "a, ,OOo
allowed to persons is not extended to corpor-
ations. :but the return must cover all ne'
proflts without exemption. The annual re-
turn Of corporation must include;
HOW CORPORATIONS MUST PAY
First-The gross profits from all kinds oi
business.
Second-The expenses exclusive OF inter-
est. annuites or dividends.
Thrd-The net profits without allowance
for interest. annuitios or dividends.
Fourth-The amount paid on account OF
Interest, annuities or dividends.
Fifth-The amount paid in salaries Oh
e4 COO or less to each employe.
Sixth-The amonnt paid in salaries OF
moro than 81 900 to each employe and the
name and address OF each OF such en-
pIoyes
The gross profits include:
1. Ali profits OF trade or business.
Q. Interest, or coupons from bonds or
other securities of any corporation.
g. Dividends received from any corpor-
alton.
4. Undivided profits OF any corporation.
g. Premium on bonds, notes or stocks.
Commission or percentage.
T. Interest on government securities, not
exempt by law.
8. Interest on other notes, bonds and
securities.
9. Profits from sales OF real estate.
10. Fr, m rents.
H. Profits from All other sources to be
enumerated.
Incorporating expenses shall include:
l. Interest paid or accrued within the
wear on bonded or other indebtedness Of
such corporation.
2. Losses actually sustained during the
year. which must be separately itated and
fully described as to cause date and amount.
8. All taxes actually psid.
H. Salaries and pay of officers and en-
ployes acut,lly paid during the year.
5. Rents and necessary repairs.
G. All other necessary expenses which
must be Itemized and fully explained in the
return.
The net profits shall include:
1. All amounts paid to stockholders or
shareholders.
g. The amount of undivided profits on
hand or carried to surplus on any other fund.
3. Amount of net profits used for con-
struction. enlargement or improvement oi
plant.
A.. All good expenditures or Investments
from the net profits.
Corporations are required to keep accurate
books of account, and may DO requested tc
allow collectors TO inspect the same in veri
iying returns II the. annual return Is no
Gled with the collector in the time required
by law the corporation making default shal
forfeit penalty OF 81, 900 and 2 per cent
% nth on the tax due until paid.
EXEMPT FROM PAYING.
Certain specified corporations for charita
bic and like purposes and certain saving
banks. mutual insurance companies AM
building and loan associations arc exemp
from income tax. In such cases it is held b
the department that the intention OF the eS
emption is to extend benefits to the small de
positor and bene1ciaries of such mutual an
Gavngs in:titutions and that the corpora
tions, as such, and those who speculate /
the shares, stocks of funds are not the in
tended benefciaries OF the exemption.
Collectors are required to examine the Al
ticles of incorporation and business method
OF corporations claiming exemption, an
where such are not in the class specihcall
exempt to cause return to be made for taxa
tion, as in the case OF other corporations.
THESE WILL PAY PROMPTLY.
The tax due from salaries OF officers an
from pay OF employees OF the United Stat
will be deducted from the first excess pa
ment over $4,000 by pa. masters aid di
bursting officers in paying the same, and W
be paid over to the collectors Of the sever
districts wherein such dsbursing Office
reside or make payments 1t is proye'
that no part of the salary, fees or emol
ments OF any state, county or municipal {
flcer is subject to income tax, and no retu
thereof shall be made Of the salary or fees
such officers. Salary received by COVER
ment officials in 1894 shall be included
their first annual return, to be made on
before the first Monday in March, 1885,
Appeals, and the methods thereof, are
lowed and prescribed in all cases where t
person charged with the tax is dissatisa
with the decision of a deputy collector
collector. In the first instance the appeal
to the collector, and if dissatisfied with
decision, the appellant may have the ent
cause, with papers and evidence relati
: thereto, transferred to the Commissioner
Internal Revenue for his decision.
Several penalties are imposed upon
officers and other persons who make knoV
In any manner, any fact as to the sources
= amount Of the income of any such pers