West Virginia argus. [volume] (Kingwood, W. Va.) 1877-1946, 1894-09-20
INC0M L AK.
Begins 10 Operate January /, 1895
Ends January 1, 1900.

Ends January 1, 1900.
The income-taX provision in the
Tariff bill begins to operate on Jan
nary |, 1895, and continues until
January |, 1900. The tax & per
cent? is to be levied on all incomes
aboye $4,000. 1t is to be paid not
only by all who reside within the
country, on incomes derived from
any source, but Ly citizens of the
United States residing abroad, and
by all residents of foreign countries
on incomes derived from property
situated in the United States or
from business carried on here. The
tax is on the income of the year
previous to that for which it is
levied. Therefore the first tax will
be LEVIED on incomes received in
1894.
There are two classes Of incomes
recognized by the blll-the incomes
of individuals ard the incomes of
corporations. The taxable income
OF q corporation is all its income
above It's operating expenses, includ-
ing the sums paid to shareholders.
The tax Of 2 per cent is paid by the
corporation. Therefore that part
Of an individuals income which IS
derived from dividends on the shares
of a corporation that has paid the
tax is deducted, ON his return, from
his own taxable income.
There are exemptions allowed oy
the bill in computing an invldual's
income besides the $4,000. They
are as follows: The necessary ex-
pen SEES of conducting a business,
all interests ptid or due within the
year, local taxes, losses in trade or
from fires, storms or shipwrecks.
not compensated for by insurance
or otherwise; worthless debts, and
incomes 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, but
building and loan associations.
savings banks having no stock.
holders, receiving no more than
$1,000 in a year from any one de-
positor, and dividing all the yearly
profits, among the deposltors ex-
cept a contribution to 10 per cent
surplus. Mutual companies, in
Guiding insurance companies, are
all exempt.
Every person having an income
o! 50. 800 must report 1T to the Col
lector Of Internal Revenue for his
district, or his deputy. Salaries re-
ceived from corporations are report.
ed by the corporations to the col.
lector of recipients district. The
tax on the salaries Of officials of the
United States is to be deducted by
the paymaster.
The collector my require q re-
turn to be verified by oath. The
collector or his deputy may increase
the amount of income reported if
che has reason to believe that the
same is underestimated." If there
~ a neglect or refusal to make re.
turn, or il a return is fraudulent,
the collector or his deputy shall
himself make list, by examiua-
ton OF the person taxed, or other
evidence. A 80 per cent, penalty
is to be charged for neglect or re
fusual, and 100 per cent, penalty
for fraud.
A person may declare that he has
not $4,000 Of income liable to be as.
scsscd or that nc has paid his in
come tax elsewhere. If the collector
or deputy is convinced that the
declaration is true, he may grant
an exemption. fla return IL IN
creased by the collector or deputy
the person taxed may offer proof
that the increase is unjust, but the
officer will not be obliged to take
tho facts shown as conclusive, and
1t IS within his discretion 20 refuse
relief An appeal from his decis-
ION may be taken TO the commits.
5ioner OF Internal Revenue.
If corporation does not flc its
statement fine Of $1,000 is to be
LEVIED on it, and per cent month
is to be charged on the amount Of
tax due until it ls paid.
The tax is payable on July I i'm