The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-12-14
All Persons Whose Income Is Over
$500 n Year Must Report, hut the
Tax Is Only Paid ON $4,000.
BLANKS FOR CORPORATIONS
ONLY BUILDING AND OTHER MUTUAL
ASSOCIATIONS EXEMPT.
Appropriation for Putting the Law
Into Eject Passed by the House by
the Large Majority of 100.

WASHINGTON, Dec. l5.-Ine secretary
Of the Treasury to-day approved the regu-
lations prescribed by the Commissioner of
Internal Revenue for the enforcement of
the collection of the income tax under the
late tariff act. Under the regulations pro-
vided and approved, pursuant to law, every
citizen of the United States, whether re-
siding at home or abroad, and every per-
son residing or doing business in the
United States who has annual income of
more than $500 shall make a full return
of the same, verified by his oath to the
collector of internal revenue of the col
lection district in which he resides, il
not resident of the district in
which his business or property from
which income is received is situ-
ated, before the first Monday
in March of each year. The first return
under the law shall be made on or before
the first Monday in March, 1895, and shall
include all income from every source, re-
ceived in the year 1894, from the 1st day
of January to the 31st day Of December in
said year. Guardians, trustees and all per-
sons and corporations acting in any fiduci-
ary capacity are required to make similar
returns for all minors. wards or bene-
f1ciaries for whom they act.
The affidavit attached to the list must
be subscribed and sworn to by the person
making the return and is to the effect that
the affiant has included in said return all
gains profits and incomes from every
source whatever 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
interrogatories set forth on said blank
form. When completed aha dnfy verified
by the oath of the person rendering the
same, the return must be delivered by
mail or otherwise, to the collector at any
time between the 1st day Of January and
the first Monday of March each year.
WHAT MUST BE REPORTED.
The gross gains, profits and incomes re-
turned by persons shall include:
Ffrst-Gross profits of any trade, busi-
ness or vocation, wherever carried on.
Second-Rents received or accrued during
Third-Proits from sales of real estate
purchased within two years.
Fourth-Farming operations and pro-
Fifth-Money and values of all personal
property acquired by gift or inheritance.
Sixth-Premium on bonds, stocks. notes
Seventh-Income from trade or profession
not by stated salary and not heretofore
enumerated.
EIghth-From salary or compensation
other than that received from the United
States.
Ninth-Undivided gains and profits of any
partnership.
Tenth-Interest received or accrued from
all notes. bonds or other securities.
Eleventh-Interest on bonds coupons
paid OF any corporation.
Twelfth-Dividends from corporations
Thlrteenth-Income of wife or minor child
children.
Fourteenth-All other sources of income
not above enumerated.
The deductions allowed on the return and
therein enumerated are:
First-Four thousand dollars exempt by
law.
Second-Interest due and paid within the
year.
Third--National, State, county, school
and municipal taxes paid, not including as
sessments for local benefits.
Fcurth-Amount expended in purchase or
production of live stock or produce sold
within the year
items. actually incurred in Carrying on any
business or trade.
Sixth-Losses actually sustained during
the year, specified.
Seventh-Actual losses on sales of real
estate purchased within two years.
Eighth-Debts contracted and ascertained
in the year to be worthless.
Ninth-Salary or compensation over four
thousand dollars from which the tax of 2
per centum has been withheld by disbursing
officers OF the United States government
Tenth-Dividends included in the es.i-
mates of gross profits from corporations on
which the per cent. tax has been paid by
such corporation.
PENALTIES FOR FALSE RETURNS.
In the case of nonresidents the return
must be made and filed in the manner pro-
vided for residents, and If not so flel the
collector must make return for the nonres-
4; all
If any person fails to make return in the
manner and time provided by law, or make
a false or fraudulent return, the collector
shall make the return from evidence OBJ
tanned by summoning the person and exam
ining his books, and from all other evil
dence obtainabe. and shall add so per cent
10 the amount of tax found due as penalty
in case of neglect or refusal to make re-
turn. and 100 per cent. penalty in case of a
false or fraudulent return. The penalties
and interest will be added after notice to
the party, and full hearing, if such is de-
sired by him. Where the tax has been
returned and paid in another district. or
where the party has not a taxable income.
he may declare in printed affidavits on
the blank annual returns
All corporations. companies and associa-
tions, both resident and foreign doing
business for profit III the United States shall
make annual return of all net profits above
business and operating expenses on "A sepa-
rate blank prepared for them. and when
duly verified by the oath of the president
or other chief officers of such corporation.
the return must be delivered to the collector
on or before the first Monday of March of
each year. The first return of corporations
shall cover all net profits and income for
the calendar year 1894. The exemption of
$1,000 allowed TO persons lis not extended
To corporations. but the return must cover
all net profits without exemption. The an
nual return OF corporations must include:
First-The gross profits Of ali kinds OF
business.
Second-The expenses, exclusive OF inter-
est, annuities or dividends.
Third-The net profits without allowance
for interest, annuites or dividends.
Fourth-The amount paid on account of
interest, annuities. and dividends.
Fifth-The amount paid In salaries of
si.00o or less to each employe.
Sixth-The amount paid in salaries Of