The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1895-01-02
T!HE INCOME TAX RULES.
THEREGULATIONS ISSUED BY
SECRETARY CARLISLE.

-
SECRETARY CARLISLE.
What the Tax Is to Be Levied Upon
and How Returns Are to Be Made
Exemptions, Penalties and Ap.
peals-Instructions to Collectors
Incomes Over $4,000 Taxed.
The Secretary OF the Treasury approved
the income tax regulations. Every citi-
zen Of the United States, whether residing
at home or abroad, and every person re.
siding or doing bushes In the United States.
who has an annual income OF more than
e85O0, ia required to make return. under
oath, before the first Monday In March OF
each year. The first return Is to include all
income received In the year 1894, from jan
uary 1 to December 81. Guardians, trus-
tees. and all corporations acting In any
fiduciary capacity are required TO make sim.
liar returns for minors, wards or benefc-
iaries. Persons having less than $500 an
nual income are not required to make re-
turns. All incomes Of $4,000 and over are
taxable TWO per cent.
The person making return is required to-
make affidavit that he has included IN said
return all gains, profits and income from
every source received by him, or TO Wmcn
he Is Justly entitled for that year. and thar
he Is honestly and truly entitled to make alE
the deductions entered on hts return, and
that he has truly answered the tnterroRa-
tories set forth on said blank form.
The gross gains, profit and income re-
turned by persons are to include: Groes
profits of any trade or business, wherever
carried on rents received or accrued dur
ing the year profits from sales Of real es-
tate purchased within TWO years farming
operations and proceeds {; money and value
OF all personal property acquired by gilt OF
Inheritance; premiums on bonds, stocks,
notes and coupons; income nom
trade or profession not by stat
ed salary and not heretofore enumer-
ated; from salary or compensation
other than that received from the United
States from salary or compensation paid BY
the United States; undivided gains and
profits Of any partnership; interest received
or accrued from all notes, bonds, or other
securities interest on bonds or coupons
paid Of any corporation; dividends from
corporations income OF wife or minor child
or children ;all other sources OF income not
above enumerated.
: TIE deductions allowed on'the return are
Four thousand dollars exempt by law inter-
est due and paid withiu the year ;; National,
State, county, school, and municipal taxes
paid, not including assessments for local
benefits amount expended In purchase or
production of live stock OK produce sold
within the year necessary expenses specified
by Items actually incurred In carrying, on
any business or trade; losses actually sus:
tained during the year, specified actual
losses on sales OF real estate purchased With
In two years debts contracted and ascer-
f,,.< hos IN "a
compensation over $4,000 from which thes
tax OF two per centum has been withheld BY
disbursing officers Of the United States Gov
ernment dividends included In the esti-
mates of gross profits from corporations on .
which the two per cent. tax has been paid
by such corporation.
II any person fails to make return Or, /,
makes false return, the collector is to makef
returns for him from evidence obtained BY
summoning the person and examining his
books, and from all other evidence obtain
able, and shall add fifty per cent. to the
amount OF tax found due as penalty for,
neglect and 100 per cent. penalty In case OF
a fraudulent return. s...
Ali corporations, companies and associa-
tions, both resident and foreign, doing bust-
ness In the United States, are required to
make annual return OF net profits on sep
arate blank to cover the calendar year 1894.
The exemption Of $4,000 allowed to persons
Is not extended to corporations, but the re-
turn must cover all net profits without e1-
smption.
The annual return OF corporations must
include: The gross profits from all kinds OF
business, the expenses. exclusive OF interest,
anruities or dividends the net profits with
out allowances for interest, annuities or
dividend the amount paid on account ofin-
terest, annuities and dividends the amount
paid In salaries of $4,000 or less to each en-
ploye the amount paid in salaries OF more
than $4,000 to each employe, and the name
and address Of each OF such employe.
The gross profits must include: ALI profits
of any trade or business; interest or cou-
pons, from bonds or other securities Of any
corporation; dividends received from any
corporation undivided profits OF any cor
poration; premium on bonds, notes, or
stocks commission or percentage; interest
on Government securities, not exempt BY
law interest on other notes, bonds, and Be-
curlties profits from sales OF real estate,
and from rents; profits from all other
sources, to be enumerated.
The operating expenses must include In
terest paid or accrued within the year on
bonded or other Indebtedness, Of such cor
poration; losses actually sustained during
the year, which must be separately stated
and fully described as to cause, date and
amount all taxes actually paid salaries
and pay Of officers and employees actually
paid during the year rents and necessary
repairs all other necessary expenses, which
must be itemized and fully explained In the
return.
The net profits are to include all amounts
paid to stockholders or shareholders the
amcu unit of undivided profits carried to sur
plus or any other fund amount OF net prof.
JNn arIu anf ar
Improvement Of plant all other expendi-
lures or investments from the net profits.
Certain specified corporations for charlt-
able and like purposes and certain savings
banks, mutual insurance companies, and
building and loan associations are exempt
from income tax. In such cases It Is held by
the department that the intention OF the e1-
emption is to extend Its benefits to the small
dep,,sitors and benehciaries OF such mutual
and savings institutions, and that the corpo-
rations, as such, and those who speculate IN
the shares, stock or funds are not the in
tended beneaciarles of the exemption.
Collectors are required to examine the
articles OF incorporatlons and business meth
DDS of corporations claiming exemption, and
where such are not within the class spectf-
cally exempt, 10 cause return to be made for
taxation, as In the case OF other corpora
tions.
The tax due from salaries of officers and
from pay of employees OF the United States Is
to be deducted from the first excess pay
ment over $4,000 by paymasters and disburs-
ing officers.
II Is provided that no part OF the salary,
fees. or emoluments OF any State, county,
or municipal officer shall be subject to in
come 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 anqual re-
turn to be made on or before the first Mon
day In March, 1895.
Appeals, In the first instance, are to be