Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1894-12-14
THE INCOME TAX.
DETAILED srlT3HgST o. THE MANNER OF
ASSESSING AGD
Collecting r-Ths Kinds q lse'ns Al. Are
Iirbs % Pay de Ts1-TLs FIsnpuoas Al
lowed and Eow Calcslaei-Proyisi9ls fer
ApBsal ircm Decisions o. Co.lso,srs.


Frsciol % ~ Rssafs-.
PARKrRsnURG, w. VA, December ID
Internal Revenue Collector Z. NJ. Gilke-
sou is anticipating a good deal Of extra
work In the collection Of the income tax,
which b8gius the hrst OF January, or as
soon thereafter as an appropriation is made
by Congress 70 provide for It's collection.
While demands are being made By Collect
ors throughout the country for additional
deputies and clerks. the disposition Of the
Commissioner OF Internal Revenue IS 20
have The WORK done at as small an expense
as possible, and 10 may be that no increase
in force viii DC allowed Mr.. GilkesOu. In
that event. the collection Of the tax viii be
slow and laborious, as the Collectors force
has now about all 10 can DO 70 keep the
necessary work done ina the State ana see
that the revenue laws ara complied with.
tits estimated that about S30O0J0 year
will be collected in West Virginia from
several thousand persons. by reason OF the
income tax, and as the provisions or the
law are not generally understood, your
CORES 0ndent has secured from the reve-
nue. once the following summary Of them,
which are given herewith for the Informs
tiCn Of those concerned.
THE TAX AND WHO PAYS IT.
The tax, as is generally understood, is 2
per cent on thW part Of the net income Of
every individual or drm In excess Of $4,000
received during the year preceding that in
which the tax Is paid. The tax on incomes
for the yearendlnE December 81, 1884, viii
be collected In 1895. Ia the Case OF cOrpor-
atoms and all assOciauOns-eXCept partner
ships and certain associations which are
exempt from the payment Of any tsx-2
per cent will DO collected upon the full
amount Of the net income above actual and
necessary operating expenses.
All citizens Of the United States, whether
residing az home or abroad, aud all persons
residing in the United States, are re-
Quired 20 pay the tax whether their in
comes be derived from business conducted
in this country or abroad, and oil persons
residing without the United States are re-
CURED 20 pay upon incomes derived in the
United States. All corporations or assO-
Citations of any kind Except partnerships)
doing business in the United States, no
matter how created, are included in the
term corporation, and are required 70 pay
the tax Of two per cent upon the full
amount Of their net profits, except the
following, which are exempt:
EXEMPTIONS.
States, counties aud municipalities;
charitable. religious and educational ass0-
Citations, including lodges which pay death,
sick or accident benefits; building and loan
associations; savings banks which have 20
stockholders but depOsitOrs, or receive not
over 81 900 from any depOsitOr in one year,
or do not allow an accumulation Of over
$4,000 deposits 0v any one depOsitor, or
which divide among all depOsitOrs, rataoly
20 deposits all earnings above the necessary
expenses Of the bank, or which shall con-
duct its business on the mutual plan solely
for the benefit of its depOsitOrs; insurance
companies conducted solely upon the mu-
tual plan and only for the benefit Of its
policy holders or members.
The salaries Of State, county and NUM-
cipal officers are also exempt from the IL
come tax.
NODES OF COLLECTION.
In the case Of an officer of the govern
ment receiving an annual salary Of more
than q, QUO, including the President q the
I-nited Raes, Senators and Representa-
ives m Congress, and all persons 10 tue
civil military or naval service or employ
ment Of the government, the paymaster or
disbursing agent from whom sucn pay is
received, shall deduct from the payments
two per cent. upon the excess OF such sal
ary over $1,000, and shall pay the same over
70 the Treasurer Of fthe United States. In
all other cases the tax is collected by the
collectors Of lltGfnal revenue, whose depu-
ties areireQ%Yd from time 70 time to can
yaSs-t1eiS p4spective divisions In search of
tsOns liable TO pay this or other internal
revenue taxes,
RET URNs FROM THOSE WHO PAY No TAX.
Every person of lawful age, whose in
come for the previous year has eQualled or
exceed s., 500, and every guardian or per-
son acting in any hduciary capacity, agent
trustee, executor, receiver, or who acts for
another person whose income is $500 or
more, is required annually on or before the
trst Monday in March to make and render
a sworn return % the collector or one Of
his deputies, showing the amount OF his
income, gains and prOHts, or the income Of
such person as he may be acting for.
NOW TO ESTIMATE ONES INCOME.
The law provides that in estimating the
gains, profits, and income Of any person
there shall be included all income derived
from interest upon notes, bonds aud other
securities, except such bonds Of the United
States the principal and interest Of which
are by the law Of their issuance exempt
from all Federal taxation; profits realize
within the year from sales Of real estate
purchased within two years previous %
the close Of the year for which income is
estimated; interest received or accrued
upon all notes, bonds, mortgages, or other
forms Of Indebtedness bearing interest,
whether paid or not, If good and cOlectable,
less the interest which has become due
from said person or which has been paid
by him during the year; the amount Of all
premiums on bonds, notes, or coupons; the
the amount Of sales Of live stock, or pro-
Iduce of the estate Of such person, less the
amount expended ia the purchase or pro-
duCiOn OF said stock or produce, and not
ucluding any part thereof consumed
directly by the family; money and the
Taluo Of all personal property acquired by
zitt'CF Inheritance; all other gains, profits
and Income derived from any source what
ever except that portion Of the pay re
Ceived for services in the service of the
United States, from which the tax has
been deducted, and except that portion of
eEy salary upon which the employer is re-
euired bY law 10 withhold, and does with
hold the tax and pays the same TO the
othCor authorized TO receive.
To computing Incomes the necessary eX-
penses actually incurred in carrying on
any business. occupation, or profession
shall be deducted and also all interest due
or paid within the year by such person on
existing Indebtedness. And all national,
State, county, school and municipal taxes,
not including those assessed against local |
benefits, paid within tue year snail be de- |
Quoted frsm she gains, profits, or income OF I
the person who has actually paid the |
same, whether such person Do OwnOr, |
tenant, or m0rtgagor; also losses actually |
sustained during the year, incurred in /
trade or arising from fires, storms, or ship /
wreck, and not compensated for by insUr- |
ance or otherwise, and debts asCertained |
70 be worthless, but excluding al estimsted !
depreciation Of values and losses within |
the year on sales Of real estate purchased |
within two wears previous 20 the year for /
which income is estimated.
Provided, that no deduction shall be /
mnda for anr annnnnt maid ont for narY