Lincoln County leader. [volume] (Toledo, Lincoln County, Or.) 1893-1987, 1894-09-06
Number 27,
The Income Tax.

The income-tax provision in th>
tariff bill begins to operate on Jan
I, 1895, and continues until Jan. j
1900. The tax e per cent? is ta
be levied on all incomes above
$4,000. 1t is to be paid not only
by all who reside within the country
ON income derived from any source
but by citizens of the United States
residing abroad, and by all residents
OF foreign countries ON incomes de.
rived from property situated in tne
United States or from business
carried on here, The tax Is ou IL,
income of the year previous to that
for which il is levied. Therefore
the first tax will be levied on ire
comes received in 1894. \
There are two classes Of incomes
recognized by the bill--the incomes
of individuals and the incomes OF
corporations. The taxable income
of a corporation is all its iucoulS
above its operating expenses, in,
cludlng the sums paid to stock,
holders. The tax of 2 per cent. Is
paid by the corporation. There,
fore that part OF an individuals III,
come which is derived from divig
dends on the shares Of a corpora
ton that has paid the tax is de,
Quoted, by his return, from his OWL
taxable income.
There are exemptions allowed by
the Bill i'll computing all individ.
ual's income besides the $500.
They are as follows: The necessary
expenses Of conducting business.
all interest paid or due within the
year, local taxes, losses in trade oil
from fires, storms or shipwrecl.
not compensated for by insurance
or otherwise, worthless debts, and
income on which the tax has been
paid by corporations.
AS to corporations, charitable,
religious and educational corpora.
tons are exempted, as are states
counties and municipalities, build
ing and loan associations, savings
banks having no stockholders, re1
ceiving no more than 81, 900 in a
year from any one depositor, and
dividing al the yearly prnitsamon4-
the depositors except q contrihus
ton to a 10 per cent, surplus,
Mutual companies, including inp
surance companies, are all exempt,
Every person having an income
of $3, 500 must report it to the Coll
lector of Internal Revenue for his
district, or his deputy. Salaries re"
ceived from corporations are re-
ported by the corporations to the
collector Of the recipients district.
The tax on the salaries of officials
of the United States is to be de-
Quoted by the paymaster.
The collector may require a re-
turn to be verified by oath. The
collector OF his deputy may increase
the amount Of income reported II
che has reason TO believe that the
= same is underestimated." If there
t is a neglect or refusal to make a
return, or If return is fraudulent,
[ the collector or his deputy shall
t himself make list, by examination
= Of the person taxed, or other evil
5 deuce. A so per cent. penalty is
| to be charged for neglect or refusal,
: and 100 per cent. penalty for
: fraud.
A person may declare tLat he ha!
not 81, 900 Of income liable to be
assessed or that he has paid hi
=
income tax elsewhere. If the col
= 1ector or deputy is convinced tha
the declaration is true he may gran
> m exemption. Ifa return is i'll
creased by the collector OF deputy
the person taxed may offer proc
that the increase is unjust, but tn,
officer will not be obliged to talk,
c the facts shown as conclusive, ant
t it is within his discretion to refus
II relief. An appeal from his decision
y may be taken to the Commissione
d Of Internal Revenue.
y If the corporation does not file il
IS statement a fine of $1,000 is 10 b
y levied on it, aud ? per cent.
r month is to be charged on tht
y amount of tax due until it Is paid
C The tax is payable on July il
b each yeary. Ifit is notpaid within
ten days after that penalty of
r per cent 10 to be charged, togethe