The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-12-14
INCOME TAX REGULATIONS.
AR PERSONS WHOSE INCOME rs
oVER $4,000 MUsT MAKE RETURN.


Oniy Incomes OF Over $4,000 Are 20 ne
Tsxed-The $4,000 Exemption Not Es.
tendea 20 OBSERVATION-DISCLOSURES, Gains,
and Ineon,s TO ne Isciudsa In the RE-
turn. OF Corporation saa I.dIvid-ais.
WASHINGTON, Dec. lathe Secretary Of the
Treasury to-day approved the income tar reRu-
lations. Every citizen OF the United States,
whether residing at home or abroad, and every
person residing or doing business In the United
States, who has an annual income Of more than
s3.5Uo, il required to make return, under oath,
before the first Monday In March Of each year.
The first return is 10 include all income received
in the year 1894, from Jan. 1 to Dec. u. Guar
dlans, trustees. and oil corporations acting in
any nduciary capacity are required to make
similar returns for minors, wards. or bene-
hciaries. Persons having less than $1,000 annual
income are not required to make returns. All
incomes of $4,000 and over are taxable two
per cent.
The person making return Is required 10 make
affidavit that he has included in said return all
gains, profits. and income from every source
received by him. or to which he is Justly entitled
for that year. and that he is honestly and truly
entitled TO make all the deductions entered on
his return. and that he has truly answered the
interrogatories set forth on said blank form.
The gross gains, profit, and income returned
by persons are TO include: Gross profits Of any
trade or business, wherever carried on; rents
received or accrued during the year; profits
from sales OF real estate purchased within two
years: farming operations and proceeds; money
and value of all personal property acquired by
gift or Inheritance; premiums on bonds, stocks,
notes, and coupons; income from trade or pro-
fession not by stated salary and not heretofore
enumerated; from salary or compensation
other than that received from the United States;
from salary or compensation paid by the United
States; undivided gains and profits of any part
nership; interest received or accrued from all
notes, bonds, or other securities; interest on
bonds or coupons paid Of any corporation; dtvi-
dends from corporations; income OF wife or
minor child or children; all other sources Of in
come not above enumerated.
The deductions allowed on the return are:
Four THOUSAND 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; amount
expended in purchase or production of live stock
or produce sold within the year; necessary ex-
penscs specified by items actually incurred in
carrying on any business or trade; losses actu-
ally sustained during the year. specified; actual
losses on sales OF real estate purchased within
two years: debts contracted and ascertained in
III ltNT W 10 W'ElHltSFs BINARY ~ tolIlptnhhtlDll
over 81, 200 from which the tax of two per
centum has been withheld by dlsbursing officers
OF the United States Government; dividends In
cluded In the estimates Of gross profits from cor
porations on which the two per cent. tax has
been paid by such corporation.
II any person fails to make return or makes
false return. the collector is to make returns
for him from evidence obtained by summoning
the person and examining. his books, and from
all other evidence obtalnablc. and shall add 90
per cent. to the amount of tax found due as a
penalty for neglect and 100 per cent. penalty in
case of n fraudulent return.
All corporations, companies, and associations,
both resident and foreign. doing business In the
United States. are required TO make annual re-
turn OF net profits on a separate blank TO, cover
the calandar year 1894. The exemption, OF
corporations, but the return must cover all net
profits without exemption.
clude: The gross profits from all kinds OF bust
ness. the EXPENSES, exclusive of interest, annuit-
les. or dividends; the net profits. without
for interest, annuities or dividends;
les. and dividends: the amount paid in salaries
paid In salaries of more than $4,000 to each
employee, and the name and address Of each of
The gross profits must include: All profits of
any trade or business; interest or coupons. from
dividends received from any corporation; un.
profits of any corporation; premium on
bonds, notes. or stocks; commission or per.
by law; interest on other notes, bonds,
and securities; profits from sales OF real estate
hi'i lItil III ploht ilOIl AL III uIt
to be enumerated.
The operating expenses must include interest
paid or accrued within tho year on bonded or
other Indebtedness OF such corporation: losses
actually sustained during the year. which must
be separately stated and fully described as to
cause, date, and amount: all taxes actually paid;
and pay of officers and employees ac-
tually paid during the year; rents and necesss-
~ repairs; all other necessary expenses, which
must be itemized and fully explained In the re-
turn.
paid tO" StnCkhOluPra or shareholders. the amount
OF undivided profits carried to surplus or any
other fund; amount OF net profits used for con-
enlargement, or Improvement OF
plants, all other Expenditures or Investments
from the net profits.
and like purposes and certain savings banks,
insurance companies, and building and
In such cases /. is held by the deps rtment that
the intention of the exemption Il 10 extend It's
OF such mutual and savings institutions, and
that the corporations, NJ such, and those who
in the shares, stock, or fund. are not
tine intended beneticiaries OF the exemption.
Collectors are required TO examine the arti-
cles OF interpretations and business methods OF
corporations claiming exemption. and where
such are not within the class specifically ex-
to cause return to be made for taxation,
as in the case of other corporations.
pay OF employees Of the United States is to be
from the first excess payment over
81. 900 by paymRsters aud disbursing officers,
or sm9Iamehts Of any State, county, or mstuRici,
lhl OlilNN Hholl " huplcNl W lh'bliic idA ia nv
return thereof shall be made OF the salary or
fees of such officers. Salary received by Gov
eminent officials in 1894 shall be included In
the first annual return to ba made on or before
the first Monday in March, 1898.
Appeals, In the first instance, are 10 be made
by dissatisfied taxpayers 10 the collector. and, II
dissatisfied with his decision, the appellant may
have the entire cause. with all papers and eVi-
dencc relating thereto, transferred In the Com
OF Internal Revenue for his decision.
Severe penalties are imposed upon all officers
and others who make known, in any manner.
any fact or particulars contained In or relating
10 an annual return of any taxpayer, or any fact
Hs 10 the sources or amount OF the income of
any such person. collectors are strictly di-
rected by the regulations 10 rigidly enforce this
provision.
The tax on incomes for the year 1904 will bs
duo and payable before the first day Of July
next. and IL not paid at that time the penalties
will attach for nOn-payment.
The full text of the regulations contain about
$4,000 words, and will not be printed for distri-
for IA week or more.
An Application 20 Have ths Relic Seat 70