Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-08-16

gains. profits or income be derived from any
kind Of property, rents interests, divi-
Il ade. employment or vocation carried on
In the United States or elsewhere or from
any other source whatever q tax Of per
centum on the amounts 50 derived over and
above $4,000 A like tax shall be levied,
collected and paid annually upon the gains.
profits and income from all property owned
end Of every business. trade or profession
carried on in the United States by persons
residing without the United States. And
the tax herein provided for shall be assess
ed by the commissioner Of internal revenue
and collected and paid upon the gains.
profits and income for the year ending the
S1st day OF December next preceding the
time for levying. collecting and paying said
tax"
1t is further provided that all incomes
derived from interests upon notes. bonds
and other securities. except such United
States bonds. the principal and interest Of
which are by law exempt from all federal
taxation. shall be included In estimating
the gains. profits and income of any per-
son; also profits realized within the year
from sales of real estate purchased within
two years previous to the close of the year
for which income is estimated; interest re-
ceived or accrued upon all notes, bonds,
mortgages or other forms of Indebtedness
bearing interest whether paid or not, II
good and coliectible, less The interest which
has become due from said person which
has been paid by him during the year; the
| amount Of all premium on bonds notes or
coupons: the amour: of sales of live stock,
sugar, cotton, wool. butter. cheese, pork,
beef, mutton. or other meats. hay and grain.
or other vegetable or other productions,
being the growth or produce Of the estate
CT such person, less the amount expended
In the purchase o. production of said stock
or produce, and not including any part
thereof consumed directly by the family;
money and the value of all personal Prop
erty acquired by gift or Inheritance; all
other gains. profits, and income derived
from any source whatever.
Government Ohlclals' Salaries.
There is excepted that portion of the
salary. compensation pay received for
services in the civil. military, naval or
ether service of the United States, including
Senators. Representatives and delegates in
Congress from which the tax has been de-
Quoted. and that portion of any salary upon
which the employer is required by law to
withhold and does withhold the tax and
pays rhe same to the officer authorized to
receive 1t.
The necessary exper ses actually incurred
in carrying on any HI siness, occupation or
profession, and also all interest due or paid
within the year on existing Indebtedness,
shall be deducted in computing incomes.
All taxes, national and local, shall be de-
Quoted from the income of the person who
has paid the same, whether such person be
owner. tenant or mortgagor: also losses
actually sustained during the year incurred
In trade or arising from fires, storms or
shipwreck, and not compensated for by in
surance or otherwise; also debts ascertained
to be worthless. but excluding all estimated
depreciation of values and losses within
the year on sales of real estate purchased
within two years previous to the year for
which income was estimated.
No deduction is to be made for any
amount paid out for new buildings perma-
nent improvements or betterments made
to increase the value of any property or
estate 1t is further provided that only one
of z cbah
aggregate income of all the members of
any family composed Of one or both par
eEts and one or more minor children, or
husband and wife. Deductions are allowed
by guardians In favor of each and every
ward. except that in case where two or
more wards are comprised in one family
and have joint property interests the aggre-
gate deduction in their favor shall not
exceed $4,000.
In cases where the salary or other COM
pensation paid to any person in the employ
ment or service of the United States
shall not exceed the rate of 81 600 per an
mum. or shall be by fees, or uncertain Or
irregular in the amount or in the time
during which the same snail have accrued
or been earned. such salary or other COM
pensation shall be included in estimating
the annual gains. profits. or income of the
person to whom the same shall have been
paid. and shall include that portion of any
been paid by the employer. where the en-
ployer is required by law TO pay on the
excess over $4,000"
Dividends received upon stock of a cor
already paid its tax shall not be included in
computing the income of any person. cor
poration, company or association.
As to the Returns.
All persons Of lawful age having an in
come of more than s., 500 for the taxable
year are required to make a list or return
to the collector or deputy collector in the
district in which they reside of the amount
Of their income. gains and profits The
same requirement is eXacted of all guard
ians, trustees or corporations acting in fidu-
ctary capacity for the minor or person for
whom they act. Persons having less than
the income above stated are not required to
to be verified by the oath or affirmation of
the party rendering IT, and IL the collector
has reason to believe that the same is
understated he may increase the amount
In cases where such return is refused to be
made or is falsely made the collector is
empowered to make such list according TO
the best information he can obtain by the
examination OF such person or any other
evidence and to add 80 per centum as a pen
atty to the amount of the tax due on such
list. The penalty is 100 per centum in ali
cases Of willfully false or fraudulent list
or return.
A person or corporation in his or its own
behalf or as fiduciary can declare under
oath or affirmation that a person is not
poSSeSSeu OF an income OF $4,UOO or has paid
an income tax elsewhere in the same year.
and IL the collector or deputy collector shall
be satisfied of the truth of the declaration
shall be exempt from the income tax for
that year. Where a list or return has been
increased by the collector the person or
corporation may be permitted to prove the
amount of income liable to be assessed but
such proof shall not be considered as con-
elusive of the facts, and no deductions
claimed in such cases shall be made or al
lowed until approved by the collector or
deputy collector. An appeal can be made
from the decision Of the deputy collector to
the collector. and his decision, unless re-
versed by the commissioner Of internal
revenue, shall be final. The bill further pro-
vides that in cases of dissatisfaction with
the decision of the collector the case may
be submitted to the commissioner of in
ternal revenue, and testimony Of witnesses
may be furnished to prove any relevant
facts, notice Of that effect having been
served UPON the commissioner. Testimony
may be taken by the government to rebut
the testimony of the witnesses examined by
the person taxed.
Tax ON NOn-Residents.
The taxes on incomes imposed by this
bill shall be due and payable on or before
the first day Of July and to any sum or
sums annually due and unpaid after that
date. and for ten days after notice and de-
mand thereof by the collector, there shall
be levied in addition thereto the sum of 3
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