Elmore bulletin. [volume] (Rocky Bar, Idaho) 1889-1906, 1894-09-08
PRovrsroSs or THE INCOME
TAX.

TAX.
The income tar provision Ia the tar
iff begins IN operate on Jan. 1. 1895.
and continues until Jan. 4. 1900. The
tax q per cent? lie 10 be levied ON all
incomes above $4,000. Il ii 70 be paid
not only by al who reside within the
country, on income derived from any
scource, bat by citizens Of the United
States residing abroad. and by al res
idente Of foreign countries on incomes
derived from property Situated 10 the
United States or from business carried
on here The tax IL on the income Of
| the year previous 20 that for which II
10 levied. Therefore the first tax will
be- levied ON incomes received in 1894
|. There are twD clasees al incomes
recognized by the bill--the incomes oil
individuals and the incomes 81 corpor
ations. The taxable income ~ cor
yoration H. all lie incs,nie nhnye it's sp
Grating expenses, including the snn,s
paid 70 shareholders. The tax of
per cent is paid by the corporation
Therefore the part ri an individuals
income which is derived from dividens
ON shares of q corporation that hal
paid the tsx ir deducted. by his return
| from his own taxable income.
There are exemptions allowed by
the bill In computing an individually
| income besides the $4,000. They are
~ follows: The necessary expenses
OF conducting business, all interest
paid or due within the year, loca
taxes, losses in trade OF from fires
storms or shipwreck, not compensated
for by insurance or otherwise, worth
less debts, and incomes on which thu
tax has been paid by corporations.
4 A TO corporations, charitable, relig
ious and educational corporations arr
exempted, ss are state counties ant
municipalities. building and loan as
sociations. saving banks having M
stockholders. receiying no more thar
81 900 in year from any one depos
itor, and dividing all the yearly profit
among the depositors except q contri
button 10 10 per cent surplus. Nut
ual companies. including INSURANCE,
companies. are all exempt.
Every person having nn income O
% 800 must report 10 the collector 10
internal revenue for his district, or hi
deputy. Salaries received from cor
porations are reported by the corpors
tions to the collector Of the recipient
district. The tar on the salaries Of Of
ficials oi the United States is 10 be de
| durfud hv the mammalian
The collector may require a returl
~ be verified by oath The collecto
or his deputy may increase the smoun
OF income reported ''if he has reason b
believe that the same is underest
mated" II there is q neglect or re
fusal 10 make q return, or ii q return
Is fraudulent, the collector or his dep
uty shall himself make list, by ex
animation OF the person taxed, o
other evidence. A 80 per cent pen
atty 10 to be chars ed for neglect or re
!usal, and 100 per cent penalty ia
fraud.
II A person may declare tia. he Ia
not "a 900 Of income liable to be al
sessed or that he has paid his incom
tax elsewhere. II the collector OF b
; d putty IL convinced that the declarl
: ton IL true, he may grant nm exemp
, ion. IL a return Is increased by co
lecior or deputy, the person take
may offer proof that The increase 10 m
Just, hut the officer win net he oblige
n take the facts shown as cnnclusiv'
and il il within his discretion Ia refu'
; relief. An appeal from his decisio
may be taken 10 the commissioner ,
internal revenue. II the corporatio
/. does not file its statement a fine {
81 900 lie TO BE- levied ON IL. and 2 ps
cent month ID to be charged ON th
amount Of tar due until il il paid.
The tax ia payable on July in eac
year. II not paid within tsn day
after that penalty OF per cent 10 I
he charged, together with interest q
the rate Of per cent per month.