Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1895-03-28

4
$4,000 in making return for himself
and family, and should be required to
SO adjust the returns that one
deduction should appear on the
returns of the aggregate in
come of all the members
of his family, including that of
| his wife. The manner in which they
may adjust the deduction or amount
paid for taxes as between themselves
is one in which the government has no
| interest.
where a trustee distributes a tax
able income to beneficiaries he must
make return for each of said bene-
| ficiaries, as the taxable interests APP
pear at the place of his residence,
| without regard to the location of the
! beneficiaries.'
From the foregoing opinions it will
be seen that every disputed point
where the wording has given any oc-
| casion for doubt. has been construed
| favorab ly to the government. Through
| out the entire series, for instance, it
| will be observed that the family is
| considered as a unit, the incomes of
| wife and minor children being added
| to that of the father, and but
| one deduction of $4,000 allowed from
| the aggregate sum in estimating the
| 2 per cent. tax. If the husband in
| any one year, however, sustains bust
ness losses the amount of which would
| wipe out the tax. the wife'S income
| must not be included, as otherwise
| Her separate estate is allowed one
deduction of 81 200, and the tax must
be paid on the income above that
amount.
ODDITIES OF THE LAW.
Again, wife might have an income
from two separate sources, one in her
own name and the other as trustee.
But one deduction would be made for
| this-that of the trusteed portion by
the trustee. According to strict in
depreciation of the opinion rendered
no further sdeducation would be al
lowed the family in this in
stance. The father would have
to pay the tax on the aggregate
amount of his income and that
| of the free portion of his wife's estate,
and the opinion CURLY states: The
manner in which they may adjust the
deduction or amount paid for taxes as
between themselves is one in which the
government has no interest
There would appear to be an advan-
tage in reaching ones majority under
the incOme-tax law, as the rulings ap-
pear to relieve one of the burdens of
taxation at that period. Until 81, men
or women form portion of the family
unit, and the aggregate income of all
is subject to but one deduction in COM
putting the tax. The moment one comes
in possession of property the $1,000 de-
duction is applied to each individual
estate, and reducing the base reduces
the amount of the tax.
Another feature of the law. as inter-
preted. which will attract attention,
is the opinion relative to gift. The
donor must pay the tax on his gross
income, including the amount of his
benefaction. If the income of the per-
sons benefited is thus raised above the
limit of taxation, he, too. is liable for
the tax. The opinion as to the assess
ments of stockholders to make good de-
ficiencies will attract a great deal at
tention among investors. Under Or
binary circumstances financial men are
accustomed to regard such as business
losses, in the common acceptance of
the term, but the government will
permit no deduction for such pay
mentS.
REPAIRS AND BETTERMENTs.
There is narrow line between money
expended for repairs for buildings and
for betterments. The law permits a
deduction from the taxable income for
one, but not for the other. A man may
cause pane of glass to be put in his
old-fashioned window sash, or 10 for
that matter. and deduct the expense
from the taxable income. If he has a
new sash put in with two panes of
glass it's betterment, and not de-
ductible. This is possibly an extreme
case, but it clearly illustrates the beau
tiful application of the law.
The penalties provided under the
law are extreme. For a failure to
make the proper tax return, without
excuse, the collector ''shall add so per
cent. to such tax" I'm the case of
any return of a false or fraudulent list
of valuation Intentionally, he shall
add 100 per cent. to such tax" This
applies with equal force to residents
and nOnresidentS, and the collector
can enter premises, examine witnesses
and books and accounts or estimate
the amount of the income to the best
of his knowledge and belief, and add
the snug little amount of so per cent.
to the tax, or 100 per cent. if the re-
turn seems fraudulent.
Mr.. Crosse expressly stated: THE
law is on the statute books, and it is
my duty to execute it. If there arc
any non-residents whose houses are
properly in my district, and who fail to
file returns. / shall estimate them to
the best of my knowledge and belief,
and a id so per cent. to the amount of
the tax. l have no option in the mat
ter. No one should complain of an ex-
animation, if 1 am compelled to make
one. for the proceedings will be secret
and confidential, and it is a mis-
demeanor to publish them"
But are not these Investigations of
an inquisitorial and star chamber Or
der?" l asked.
"Oh," replied the collector, II don't
believe anyone will have occasion to
complain of the methods pursued.
They have to submit to open investiga-
ton on most delicate subjects now,
and surely they will not object to an
swer in terrogations that are secret
and confidential"
The New Collar.
The new square collars made of
coarse, brownish linen, bid fair to be
greatly admired, though it is too early
- % 49,