The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1894-08-29
TIE INCOME TAX.
Statement of It's Scope and Provisions
and Who it VIII E"ach.


| New YORK, Aug. 22.-The income
tax provision in the tariff bill begins
to operate on Jan. l. 1895, and contin
ues until Jan. l. 1900. The tax e pei
cent? is to 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 derived
from property situated III the United
States or from business carried en- 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 re
cognized by the bill-the incomes of
individuals and the income OF corpora
tions. The taxable income of a corpo.
ration is all its incomes above its opera.
ting expenses, including the sums paid
to shareholders. The tax of per cent
is paid by the corporation. Therefore
that part of an individuals income
which Is derived from dividends on the
shares of corporation that has paid
the tax is deducted, on his return, from
his own taxable income.
There are exemptions allowed by
the bill in computing an individually s
income besides to $4,000. They are as
follows: The necessary expenses of
conducting business, all interest paid
or due within the year, local taxes,
losses in trade or from fires, storms or
shipwreck, not compensated for by in.
surance or otherwise; worthless debts,
and income on which the tax has been
paid by corporations.
AS to corporations, charitable, reli.
gious and educational corporations are
exempted, as are States, counties and
municipalities, building and loan as
sociatious, savings banks having nc
stockholders, receiving no more than
$1,000 in a year from any one deposi
:or, and dividing all the yearly profits
among the depositors except a contri'
button to a 10 per cent. surplus. Mu-
tual companies, including insurance
companies are al exempt.
Every person having an income of
So, 800 must report it to the collector OF
internal revenue for his district, or his
deputy. Salaries received from corpo-
rations are reported by the corporations
to the collector of the recipients dis
trict. The tax on the salaries Of oili.
cials Of the United States Is to be de-
Quoted by the paymaster.
The collector may require return to
be verified by oath. The collector or
his deputy may increase the amount of
income reported if ''he has reason to
believe that the same is underestima
ted" If there is a neglect or refusal
to make return, or If a return IS
fraudulent, the collector or his deputy
shall himself make list, by e1amina-
tion of the person taxed, or other eVi.
deCce. A so per cent. penalty IS to be
charged for neglect or refusal, and lOO
per cent. penalty for fraud.
a person may declare that be has
not S4 600 income liable to be assessed
or that be has paid his income tax else
where. If the collector or deputy is
convinced that the declaration is true
be may grant an exemption. II a re-
tern is increased by the collector OF
deputy the person taxed may Offer proof
that the increase is unjust, but the Off
Ger will not be obliged to take the facts
shown as conclusive, and it Is within
his discretion to refuse relief. An ap-
peal from his decision may be taken to
the Commissioner of Internal Revenue,
If the corporation does not file its
statement a fine of $1,000 Is to be lev
led on it and 2 per cent. month is to
be charged on the amount OF tax due
until it is paid.
The tax is payable on July lst in
each year. Ifit is not paid within
ten days after that penalty Of 5 per
cent. is to be charged, together with
interest at the rate of per cent. per
month-World.