The Pickens sentinel. [volume] (Pickens, S.C.) 1871-1903, 1894-08-30
TIE INCOME TAX.
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New YORK, Aug. 22.-The income
lax provision In tho tariff bill bppins
to operate on Jan. l, 1895, and cOntin.
ues until Jan. 1. 1900. The tax (2 per
cent? is to be levied on all incomes
above sd ,OO0 1t is to be paid not only
by all who reside within the country.
ON income derived from any source,
out oy citizens of the United States
residing abroad, and by all residents of
fforeign countries on incomes derived
Stotn Stn property situated In the United
Tba to w Irom business carried on here.
nrn1,;l T"A IL on the income of the voar
fHihovauus Hhornu 20 that for which r. "a levied
inno,ooo Cls nrst tax will be levied on
illG0mes received in 1894. ''"' VII
In1le aie Two classes of income. ro
inSiuIG,,oiy iSu ny Siie Dlii-the incomes of
t1ons. The taxable income nf corpora
ration Is all its incomes above its op oulpo'
ting expenses, including the sums poan; na;';
TO shareholders. Tho tax of per cent
Is paid by the corporation. Therefnr.o
Chat part OF an individuals income
which Is derived from dividends on the
shares OF a corporation that has paid
tho tax Is deducted, on his return, from
his own taxable income.
There are exemptions allowed by
the Dill IN computing an individuals
income besides to "a, coo. They are as
follows: The necessary expenses of
conducting business, all interest paid
or due within the year, local taxes,
losses In trade or from fires, storms or
shipwreck, not compensated for by in.
surance or otherwise; worthless debts
and income on which the tax has been
paid by corporations.
as to corporations, charitable, rell-
glous and educational corporations are
exempted, as are States, counties and
municipalities, building aud loan as
s0clatlous, savings banks having no
stockholders, receiving no more than
$1,CoO In year from any one deposl.
sor, and dividing all the yearly profits
among the depositors except a contri.
button to 10 per cent. surplus. Mu-
tual companies, including insurance
companies are all exempt.
Every person having an income of
$3 800 must report 1t to the collector of
internal revenue for his district, or his
deputy. Salaries received from corpo-
raGlons are reported by the corporations
to the collector of the recipients dis
trfct. The tax on the salaries Of off.
cials OF the United States Is to be de.
Quoted by the paymaster.
Ihe collector may require return to
be verified by oath. The collector or
his deputy may increase the amount of
income reported if che has reason to
believe that the same is underestima.
ted" 1t there Is Il neglect or refusal
to make return, or if a return is
fraudulent, the collector or his deputy
shall himself make list, by examina.
tton of the person taxed, or other evi
dence. A 50 per cent. penalty is to be
charged for neglect or refusal, and 100
per cent. penalty for fraud.
a person may declare that he has
not 50, ,OC0 income liable to be assessed
or that he has paid his income tax else
where. II the collector or deputy Is
convinced that the declaration is true
ne may grant an exemption. If a re.
turn is Increased by the collector or
deputy the person taxed may offer proof
that the increase Is unjust, but the Off
Ger will not be obliged to take the facts
shown as conclusive, and it is within
his discretion to refuse relief. An ap-
peal from his decision may be taken to
the Commissioner of Internal Reven ue
If the corporation does not file its
statement fine of 1000 Is to be loY.
led on 1t and per cant. month Is to
be charged on the amount Of tax due
until 1t Is paid.
The tax is payable on July lst in
each year. If 1T is not paid within
ten days after that penalty of IS per
cent. Is to be charged, together with
interest at the rate of 1 per cont. per