The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-12-14
now FOR THE INCOME TAX.
Returns Must be Made Before the First
Monday in March.

One Hundred Per Cent. Increase in
the Tax the Penalty for Making a
Fraudulent Return.
Washington, Dec. 13.-The Secretary OF
the Treaury to-day approved the income
tax regulations. Every citizen of the United
States. whether residing at home or
abroad, and every person residing or doing
business in the United States who has an
annual income of moro than 50, 500. is re-
quired to make 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, from Jan. to
Dec. 81. Guardians, trustees and all cor
porations acting in any fduciary capacity
are required to make similar returns for
minors, wards or benefciaries. Persons
having less than $500 annual income are
not required to make returns. All in
comes of $4,000 and over are taxable . per
cent
The person making a return is required
10 make affidavit that he has included in
said returns, all gains. profits and income
from every source whatever received by
him, or to which he is justly entitled for
that year, and he is honestly and truly
entitled to make all the deductions enter
ed in his return; and that he has truly
answered the interrogatories set forth
on said blank form
The gross gains, profits and income re-
turned by persons are to include: Gross
pronts Of any trade or business wherever
carried on; rents received or accrued
EfHa h.
estate purhased 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 stated salary and not
heretofore enumerated; 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 part
nerships; interest received or accrued from
all notes, bonds or other securities; inter-
est on bonds or coupons paid of any cor
poration; dividends from corporations; in
come of wife or minor children; or all other
sources OF income not above enumerated.
The deductions allowed on the return
are; $4,000 exempt by law; interest due and
PAID within the year; national state,
county, school and municipal taxes paid,
not including assessments for local bene-
hts; amount expended in the purchase, or
production, of live stock or produce sold
within the year; necessary expenses speci-
fed by items actually incurred in carrying
on any business or trade; losses actually
sustained during the year, specified; actual
losses on sales of real estates purchased
within two years; debts contracted and
ascertained in the year; salary or compen-
sation over $4,000 from which the tax of
per centum has been withheld by dis
bursting officers of the United States gov
ernment; dividends included in the esti-
mates of gross profits from corporations
on which the 2per cent. tax has been paid
by such corporation.
If any person fails to make return or
makes false returns, the collector is to
make return for him from evidence OBJ
tanned by summons and examining his
books, and all of the other evidence OBJ
tainable, and shall add so per cent. to the
amount of tax found due, as penalty for
neglect, and 100 per cent for fraudulent
returns. All corporations, companies and
associations, both resident and foreign,
doing business in the United States are
required to make an annual return of
their net profits on a separate blank to
cover the calendar year 1894.
The exemption of $4,000 allowed to per-
sons is not extended to corporations, but
the return must cover all net profits with
out exemption. The annual return of cor
porations must include: The gross potts
from all kinds of business; the expenses,
exclusive of interest annuities or diVi-
dends; the net profits without allowance
Tor interest, annuities, or dividends; the
amount paid on account of interest an
nuities and dividends; the amount paid in
salaries of $4,000 or less to each employe;
the amount paid in salaries of more than
$1,000 each to each employe, and the
name asSd address of each of such en-
ployes.
The gross profits must include: All pro-
fits of any trade or business; interest or
coupons from bonds or other securities
OF any corporation dividends received
from any corporation; undivided pronts
Of any corporation; premiums on bonds,
notes. or stocks; commission or per cent
age; interest on government securltles'
not exempt by law; interest on other
notes. bonds and securities; profits from
sales Of real estate; from rents, ana pro-
fits from all other sources, to be enumera-
ted
The operating expenses must include;
interest paid or accrued within the year
on bonded, or other indebtedness OF such
corporation; losses actually sustained ouI-
ing the year which must be separately
stated and fully described as to cause
GATE and amount; all taxes actually pald'
salaries and pay OF officers and employees
actually paid during the year; rents ana
necessary repairs; all other necessary eX-
penses which must be itemized and fully
explained in the return.
Net profits are to include: All amounts
PAID to stockholders or shareholders; the
amount of undivided profits carried TO
surplus or any other fund; the amount
OF net profits used for construction, en-
largement or improvement of plant; all
olner expenditures or Investments from
me net profits.
. certain specified corporations for char
tldole and like purposes and certain saw
IHss banks, mutual insurance companies
ana loan associations, are exempt from
me income tax. In such cases it is held
uy the department that the intention of
He exemption is to extend it's benefits
70 the small depositors and beneticiaries
vi such mutual and savings institutions.
ana that the corporations as such, and
nose who speculate in the shares, stock
W FUNDS, are not the intended benehciaries
" the exemption
Collectors are required to examine the
Nueles of Incorporation and business
,ntelhods of corporations claiming exemp-
IN ana where such are not within the
ass specifically exempt to cause return
90 ~ oe made for taxation as in the case of