The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1894-12-17
THE TAX ON INCOMES.
Regulations Approved by Secretary Car
Isle.

| The secretary of the treasury has ap-
| proved the income tax regulations. Every
citizen of the United States and every per-
| son residing or doing business in the
| United States who has an annual income
| of more that $500. is equired 10 make re-
| turns under oath before the first Monday
| in March of each year. The first return is
| to include all income received in the year
| 1894 Guardians. trustees and all COR
| norations acting in any
1 fduciary capacity are requested to make
| similar returns for minors, wards or bene-
| fciaries. All incomes of $4,000 and over
are taxable per cent. The person making
| return must make affidavit that he has in
| cluded all gains, profits and income from
| every source received by him, OF to which
| he is Justly entitled for the year. and that
| he is honestly entitled to make all the de-
| auctions entered on his return and that he
| has truly answered the interrogatories set
forth on the blank form.
The gross income returned by persons is
| to include: Gross profits of any trade or
business; rents received or accrued; profits
| from sales of real estate purchased within
| two years; farming operations and pro-
| ceeds money and personal property ac-
ouired by gift or Inheritance; premiums on
bonds, stocks, notes and coupons; income
from trade or profession not by stated sala-
ry; from salary or compensation other than
that received from the United States, from
salary or compensation Iaid by the United
States; undivided gains or profits of any
partnership: interest received or accrued
| from notes, bonds or other securities; in
terest on bonds or coupons paid of any cor
poration; dividend from oorpo1 atoms; in
come of wife or minor children; all other
sources of income not above enumerated.
The deduc lions allowed are: Four thou
sand dollars exempt by law; interest due
| and paid within the year; national. state.
county, school and municipal taxes paid.
not including assessments for local benefits:
amounts expended in purchase or produc-
| ton of live stock or produce sold within the
year; necessary expenses incurred in car
rying on any business or trade; specified
losses sustained during the year specified;
actual losses on sales of real estate puI-
chased within two years; debts contracted
and ascertained in the year to be worthless;
salary or compensation over $4,000 from
which the tax of per centum has been
Withheld by disbursing ofncers Of the United
States; dividends included in the estimates
of gross profits from corporations on which
? per cent. tax has been paid by such cor
poration.
If any person fails to make return, OF
makes false return, the collector is to make
return for him from what evidence may he
obtainable and shall add SO per cont. to the
amount of tax found due as a penalty fol
neglect and 100 per cent. penalty in case of
fraudulent return.
Corporations are required to specify in
their returns their gross profits. expenses.
net profits. amounts paid in dividends, etc,
and in salaries. Certain corporations for
charitable and like purposes and certain
savings banks, mutual insurance companies
and buildings and loan associations, ex-
empt from income tax. In such cases it is
held by the department that the intention
of the exemption is to extend its benefits to
the small depositors and benefciaries and
not to the corporations as such. nor to
those who speculate in their stock or funds.
No part of the salary or emoluments of
any state, county or municipal officer, shall
be subject to income tax. Dissatisfied tax
payers may appeal first to the collector and
then to the commissioner of internal reye-
nue.. Severe penalties are imposed upon
officers and others who make known any
fact as to the sources OF amount of the in
come of any taxpayer. The tax on incomes
for 1894 will be due and payable on or before
July l next. and if not paid at that time
the penalties will attach for non-payment.
The full text OF the regulations contains
about $4,000 words.