The herald., 1894-12-14

lonQoQ 10 COIpOEduOus, Uut tuo io'
turns must cover all net profits. without
Exemption. The annual return OF cor
porations must include:
First-The gross profits of all kinds ol
business.
Second-The expenses, exclusive oi
interest, annuities or dividends.
Third-The net profits, without allow.
ance for interest, annuities or dividends,
Fourth-The amount paid on account
of interest, annuities and dividends.
Fifth-The amount paid In salaries OF
$4,000 or less TO each employee.
Sixth--The amount paid in salaries OF
more than $4,000 to each employee, the
names and addresses OF each OF such
employees.
1he gross profits include:
First-All profits of any trade or busi.
ness.
Second-Interest or coupons from
bonds or other securities of any corpor-
8, alton.
Third--Dividends received from any
corporation.
Fourth-U Undivided profits Of any cor
poration.
Fifth-Premium on bonds, notes or
stocks.
Sixth-Comm mission or percentage.
Seventb-Interest on government ses
curities not exempted by law.
Eighth - Interest on other notes,
bonds and securities.
Ninth-Protits from sales of real es-
tate.
Tenth-From rents.
Eleventh - Profits from all other
aources, to be enumerated.
The operating expenses shall include
First--Interest PAID on or accrued
within the year on bonded or other in-
debtedness OF such corporation.
Second-Loss actually sustained dur
ing the year which must be separately
and fully described "a to cause, date
and amount.
Third-All taxes actually paid.
Fourth-Salaries and pay OF officers
and employees actually paid during the
year.
Fifth--Rents and necessary repairs.
Sixth-All other necessary expenses
which must be itemized and fully ex-
planned in the return.
The net profits shall include:
First-All amounts paid to stockhold.
er. or shareholders.
Second-The amount of undivided
profits on hand or carried to surplus or
any other fund.
Third-Amount of net profits used for
construction, enlargement or Of improve.
ment OF plant.
Fourth-All other expenditures or in.
vestmen:s from the net profits.
Corporations are required to keep
accurate books OF accounts and may be
requested to allow collectors to inspect
the same in veriication of the returns. II
the annual return is not filed with the
collector in the time required by law,
the corporation making default shall
(, rfeit penalty of $1,000 and 2 per cent
. month on the tax due until paid.
Certain specified corporations for
charitable and like purposes, and saw
lngs banks, mutural insurance compa-
MES and building and loan associations
are exempt from income tax. In such
cases it is held by the department
the intention of the exemp-
tion ia to extend benefits to
the small depositors and bene ficieries
of such mutual savings institutions, and
shst the corporations, such ae those who
speculate in the shares, stocks or funds,
are not beneficiaries Of the exemption.
Collectors are required to examine
the articles Of Incorporation and busi-
exemption and which are not in the
class specifically exempted and to cause
return to be made for taxation, as il the
case OF other corporations.
The tax due from salaries or officers
and from pay OF employees of the United
States will be deducted from the first
excess pay ment over $4,000, by paymas-
ters and disbursing officers in paying
ho xuil ha ~
collectors of the several districts
wherein such disbursng off cere reside or
make pay ymen.s. 1t is provided that no
part of the salary, fees or emolumcnts
Of any state, county or municipal off,
Ger is subject to income tax, and
no return thereof shall be made
of the salary or fees of such officers.
Salaries received by government officers
In 1894 shall be included n the first an
nual return 20 be made on or after the
6rst Monday in March, 1895.
Appeals from and the method thereof
are allowed and prescribed in all cases
where the person charged with the tax
is dissatisfied with the decision of q
deputy collector or collector. In the
first instance the appeal is to the COL
lector, aud if dissatisfied with his
6ecision, the appellant may have the
entire case with all the papers and evil
dence relating thereto. referred to the
commissioner of internal revenue for
his decision.
Severe penalties are imp osed on all
officers and other persons who make
known in any manner, or in any fact or
any particulars contained in or relating
TO any return of any taxpayer, or any
TACT as to the source of amount of the
income of any such persons. Collectors
are etrictly directed by the regulations
10 rigidly enforce this provision as all
original returns are forwarded to and filed
IN the office of the commissioner OF
internal revenue, the opportunity for
exposure OF the facts protected by this
provision will be greatly reduced.
The tax on incomes for the year 1894
will be due and payable on or before the
lst day of July next, and il not paid at
that time the penalty will attach for
non-payment.
The collection oil the tax when de.
inquent will be enforced in the same
Dsnner ss in cases OF enforcemens and
collection of other taxes under the in
ternsl revenue laws of the United
States.
Carl Schurz has been reelected presi-
10. n