The daily morning journal and courier., 1895-02-18
4 coMPLIoArED LAW.

4 Meeting Held in the Chamber of CoIii'
 merce to Talk Over the Provisions of the
 Income Tax Law-Judge Morris Talks
 Some Points Brought Out.
 A meeting was held last Saturday evening under the auspices of the cham Der of commerce for the purpose of giv- ing such information as is needed for compliance with the new and compli- cated income tax law. The rooms were well filled with interested business men and lawyers. Ex-Governor Morris and Judge Hotchkiss gave their construc- ton of the law and advice as to com pliance with it. Judge Morris advises people to be conscientious and make their income tax returns as nearly ac- curate as possible. He says that it should be remembered that this is a tax on incomes or. net revenue and does not consider the principal,
 The law requires return from "all persons of awful age, having an annual income of more than $3,500 computed on the basis of said act" Judge Norris was of the firm opinion that the mini mum on which a return must be made was to be found by computing the in come as prescribed, that is, by taking the gross revenues and making the all lowed deductions. Judge Hotchklss was inclined to believe thattit was safer to make the return when the gross in- come was S3500 or over, Others were inclined to share the view of Judge Hotchkiss feeling that it woud be well to be on the safe side and avoid the danger of being hit for an extra 50 per cent. in case the collector did not agree with the estimate of the citizen. Judge Morris advised keeping the figures of income, where the collector could be convinced by them, whether a return was sent in or not.
 "Persons having less than $3,500 an- nual income are not required to make such return, but In all cases where the annual income of any person exceeds $3 800, whether 1t reaches the taxable limit or not, the list or return, on form S65 shall be made by such persons, duly verified, and forwarded to the collector of his district"
 Judge Morris insisted on the general that the law considered strict ly the business of the year from January 1 to December 31, inclusive, and that methods must be adjusted to meet those requirements.
 Of course, there is no exemption for All corporations must make returns.
 An account, contracted in 1893 and found bad in 1894, could not be de- ducted for a loss of 1894. This matter somewhat evens up eventually. A bad account must be proved bad, by law suit or other strong evidence.
 The returns for corporations are the more difficult ones to make, The re- turns will generally satisfy the law if made by going through the books for the year and computing the years actual business, as would be done in making estimates for stockholders.
 The word losses" is to be construed 'or corporation accounts as for indi- 1idual accounts. Debts proved to be pad would be included.
 Manufacturers can allow a treason tble" amount for the years wear and ear on the plant.
 Taxes paid during the year" are to De deducted, as well as 'all interest lue or paid within the year on exist ng indebtedness.
 Salaries from the city, state or town To not go into an income return.
 A legacy is paid on when received.
 Neither depreciation nor apprecia- ion of stocks or bonds or other secur- ties are to be considered in the esti- nate, unless such securities are sold. | The same is true of real estate. Profits | m the sale of the latter are to be | ounted, when the property has been | bought within two years of the close l f the year for which the income tax 5 estimated. Those who have revenues from rents ! an deduct for repairs on the property, | ut no deduction is allowed for any | hing in the nature of permanent | 
 The penalties for disclosures of facts | f incomes or business secured by col | ectors, is a fine not exceeding $1 000, | r Imprisonment not exceeding one ear or both, at the discretion of the | ourt. The same penalty is for those rho print or publish in any manner ,hatever not provided by law" any of | hese facts.
 The constitutionality of the income aX law has yet to be tested by the upreme court, but the decision will not come until after the first ollections have been made.