The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1894-12-19

corporation; 90 losses actually sustained
during the year, which must be separately
stated and fully described as to cause, date
and amount; GO all taxes actua..y paid;
90 salaries and pay of officers and en-
p-oyes actually paid during the year; Co
rents and necessary repairs; 60 all other
necessary expenses, which must be item
lied and fully explained in the return.
The net profits shall include: % Al
amounts paid to stockholders or share
holders: 90 the amount of undivided prof
its on hand or carried TO surplus or any
other fund; CD amount Of net profits used
Tor construction, enlargement or improve
ment of pant; (4) all other expenditures or
investments from the net profits.
Corporations are required to keep accu-
rate books Of account, and may be re-
quested to allow collectors to inspect the
same in verifying returns. If the annual
return is not filed with the collector in
the time required by law the corporation
making default shall forfeit 4 penalty Of
$1,000 and 2 per cent. a month on the
tax due until paid.
Certain specified corporations for chart
table and like purposes and certain saw
lngs banks, mutual insurance companies
and building and loan associations are eX-
empt from income tax. In such cases 1t
IS held by the department that the inten-
ton Of the exemption is to extend benefits
to the small depositors and benefciaries of
such mutual and savings institutions, and
who speculate in the shares. stock or
funds are not beneiclarles of the exemp-
ton. Collectors are required to examine
the articles Of incorporation and business
methods Of corporations claiming eXemp-
ton, and where such are not within the
class specifically exempt, to cause return
10 be made for taxation as in the case Of
other corporations.
Employees of the Government.
The tax due from salaries Of officers and
from pay Of employees Of the United States
will be deducted from the first excess
payment over $4,000 by paymasters and dis
bursting officers in paying the same and will
be paid over to the collectors Of the sew
eral districts wherein such disburslng off,
GERS reside or make payments 1t is pro-
vlded that no part Of the salary. fees or
emoluments Of any state, county or mu-
nicipal officer is subject to income tax,
and no return thereof shall be made Of
the salary or fees Of such officers. Salary
received by government officials in 1894
shall be included in the first annual re
turn TO be made on or before the first
Monday in March, 1895.
Appeals, and the method thereof, are al
lowed and prescribed in all cases where the
person charged with the tax is dissatisfied
with the decision Of a deputy collector or
collector. In the first instance, the appeal
IS TO the collector, and if dissatisfied with
MS uGNlSltii tllC appellant may nave NALC
entire cause. with all papers and evidence
relating thereto, transferred to the commits
sioner Of internal revenue for his decision.
Severe penalties are imposed upon all Of
hcers and other persons who make known,
in any manner, any fact or particulars con-
tanned in or relating TO any return of any
taxpayer or any fact as 10 the source or
amount Of the income of any such person.
Collectors are strictly directed by the reg
ulations to rigidly enforce this provision.
As all original returns are forwarded 10
and filed in the office Of the commissioner
of internal revenue. the opportunity for ex-
posure Of the facts protested by this pro-
vision will be greatly reduced.
The tax on incomes for the year 1894 will
be due and payable on or before the LIST day
of July next, and if not paid at that time,
the penalties will attach for non-payment.
The collection Of the tax when delinquent
will be enforced in the same manner as IN
cases Of enforcement and collections Of
other taxes under the internal revenue laws
of the United States.