Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1895-02-23
THE INCOME TAX.



tions That Have Been Asked About II.
Dubuque Telegraph.
All income tax reports are due the fire
Monday I'm March, and while the tax bear
no penalty until July I next yet 1t is du'
with the report and those disposed 10 hCl7
Uncle Sam out of a tight pinch will pay az
as promptly as possible. Many report
nave already been received.
One writes that he has to make reports
Tor two banks n another corporation
lie says he can't get the reports ready by
the first Monday I'm March and he wants 10
know whether the collector can grant him
an extension. The collector can't dc II.
however a proposition to extend the time
thirty days is now under consideration IN
congress-.
Most of the correspondence relates 10 CO.
operative creameries. The secretaries
write TO know whether these organlza-
lions are not exempt under the law. Ihey
are not. An amendment to exempt then,
was offered I'm the house, but IL was voted
down. Again the secretaries want I
know how they can report net income
when the ompany has none. the product
being divided pro rata among the mem
Ders. The way to do II. the collector an
swers, Is TO calculate the market price or
the butter produced the past year, anu
deduct the market price of the milk anu
cream consumed and the Operatives eA-
pehseS. The remainder Will be the net
income on which the 2 per cent tax Is que.
Some individuals want 10 know whether
they are Obliged To make reports II their
incomes are less than 81, 600 and more ttIan
$500. The collector answers yes, but onlS
those whose incomes exceed A,U1 are ma
Die TO the tax. Losses on real estate
bought within two years cannot he oe-
Quoted.
Some men haven't found out yet that the
corporation is liable TO tax on It's net IN
come last year whether Il he more or les"
than $4,000.
Some corporations have reported net IN,
comes of 10000 and have further reported
mat these incomes have been expended IN
salaries 10 officers who are stockholders
IN me corporation. Where the salaries
seem too large for the size of the corpora
ton the law makes IL the collectors duty
10 investigate and II he finds evidence
that the salaries were created FOR the pur-
pose OF evading the income tax he must
impose the tax and the penalty for eva
sion. Mr. Kelly will investigate these fat
salary lists as soon AS he gets some OF
this correspondence on his hands.
The secretary OF one OF these cooper
alive creamery companies. Z man evil
IDENTIFY not born to command, writes That
he commands "A salary OF $50 "A month.
This is one OF the cases Mr.. Kelly VIII not
investigate.
Some corporations report that they can
not tell what their incomes last year were
because their fiscal years end July l or
August l. So much the worse for the cor
poration. The income tax law provides
the corporation shall so keep It's books as
TO be able 10 report its net income for the
year ended December 81.
The law m building and loan as
soclallois whlch loan to s|tockholders only.
MIR. Kelly rules that such associations
oaning occasionally 10 persons not stock
holders are liable to the tax.
, One man wants the collector TO keep
his report out of the newspapers. The col
lector will do so. IL the collector discloses
the contents of any report he Is liable TO
suspension, fine and Imprisonment. The
or individual publishing IL,
even the individual who made IL, is liable
10 heavy penalties.
The secretary of a corporation not ex-
empted writes: I'VE had no net income
last year. We lost money. MuIt we re-
The collector answers yes.
A man who held $1,000 In stock in a
says the bank lost half it's capital
last year n was compelled TO cut down
It's capital one half so that he lost 5000.
He wants 10 know whether he is entitled
TO deduct this from his income. Ger
tainly,' replied Collector Kelly.
A democrat who Is a stakeholder In n
makes "A report and adds: This in
tax iniquity drives me out OF the
democratic party. 1 90 over to the
enemy