The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-02-03
INCOME TAX PAYMENT
WILL BE ATTENDED WITH NUMER-
Gus ROLLS OF s.RED TAPE"
Questions to he Answered, Together
with Instructions as Sent Out by
the Treasury Department.

that a case is now pending in the United
States Supreme Court. which has been adj
vanced on the docket so as to be decided
about the time of the beginning of the OPP
GRAFTON of the law, the Treasury Depart
ment is making all preparations for the
collection of the tax. Just now a question
of vital importance to a large number of
people is who has to pay this tax and how
much is it? Both questions are easily
answered. Every individual having a net
income over and above his business ex-
penses of 81, 900 or more, and every corpora
ton, regardless of income. except as noted
In the exemptions at the end of this ar
ticle, are subject to a tax of 2 per cent. on
the income. The individual, however, does
not have to pay anything on the first $4,000.
but pays on all in excess of that amount.
All persons having an income of more than
s., 500 are required to fill out the regular
blanks and file them just as though they
were liable for the tax.
The penalty for failing to file this blank
before the first Monday in March is 100 per
cent. on the tax, and a failure to pay the
amount assessed before July 1 subjects the
offender to a penalty of 5 percent. and l
per cent. a month interest. Every precau-
ton is taken to prevent a mans private af-
fairs becoming public property. The ques-
lions contained in the blanks are very
searching, and if a collector violates, in the
least degree, the confidence reposed in him
he is subject to a fine of $1,000, imprison-
ment for two years and disfranchisement
for life.
The tax will be collected by the internal
revenue collectors, and the district which
will make the payment to the revenue Of
flee in this city is composed of all the coun-
ties north and east of and including the
ut r---r1 T--.--l
Upton, Hamilton, Marion, Hendricks, Nor
gan, Monroe, Lawrence, Jackson, Jennings
and Jefferson. 1t has been impossible to
estimate the number of persons and corpo-
rations in this district which will come IN
der the operation of the law, but in this
county the number is placed ait about four
hundred. People are constantly calling at
the office of the collector for information,
and the Journal has been requested to
state that the facts contained in this ar
ticle are authentic, and thus save many
people the necessity of asking useless ques-
tons.
Like all other government matters the
details are very complicated, and endless
trouble is expected, while the law is yet
new, from the inability of people to fully
understand just what is expected of them.
Among the papers received by the local
Office are Two DldlhS, OuS 10 pt ulltQ ny
corporations and the other to be filled out
by individuals whose income is more than
$500, although no tax is to be paid on an
income of less than $4,000. The blanks are
very portentious looking affairs and at first
sight cause a person to have a feeling as
if he were in the clutches of some hor-
rible monster from which escape is impos-
sible. The blank which confrontse the tax
payer under the guise of "Form No. 1863
is for the return of the income of an in
dividual, and a corporation makes it's re-
turn on Form No. $685." Page 1 of the
form for individuals is occupied with in
structions to the man who is fortunate
enough to come within the workings of the
law The instructions are contained in
eighteen paragraphs and are as follows:
GENERAL INSTRUCTIONS.
l.. All persons who are required BY law to
| make and render a. personal list or return
of the amount of their income, gains and
profits received in the preceding calendar
year, and all persons who are required to
make and render a list or return of the
amount of income, gains, and profits of any
minor or person for whom they act, shall,
on or before the first Monday of March in
each year. make out such list or return
in the form and manner indicated on pages
2 and 3 of this blank.
2. The person making the return shall
subscribe his name thereto in full, and shall
state his place of residence and occupa-
ton, and If he is not a citizen of the United
| STAGES he shall so state.
8. In case such list or return is made
for or in behalf of any minor or other per-
son or estate the fact shall be stated. The
right and authority of any person who
the part and in behalf of another shall be
disclosed and the fact shown to the col
| SUCH right and authority, and that it was
his duty to make and render such list or
return.
from any particular source should be given
and entered in the return opposite the name
of the source or object included in the
statement. The exemptions and the deduc-
tions allowed by law should be given next
he entered opposite the several items of
deductions appearing in the return.
s.. The income, gains and profits received
Grated on the blank shall be given, and the
particular source from which. such income,
gains and profits were received shall be
| enumerated ON said return under paragraph
| Is, and the amount of income, gains and
profits derived therefrom shall be entered
8. The person making the return is re-
| quired to verify the same, by oath or
| affirmation, as indicated on the within form,
by affidavit to be sworn to before some
officer using a seal and authorized to adj
aepnty c%oi Heensi Of the uet district. 'so'f OF
Z The income tax must be paid in the
district in which the taxpayers return is
made to a collector or deputy collector of
! internal revenue.
s.. Persons having an annual income of
less than $500 are not required to make
and render an annual return, but in all
| cases where the annual income of any per-
son exceeds the sum of !, $500, whether it
reaches the taxable limit of $4,000 or not,
the list return on Form 365 should be made
by such person. duly verified, and forward
ed to the collector of the district in which
he resides.
2. Expenses for medical attendance, store
! accounts, family supplies, wages of domestic
| servants. cost of beard, room or house rent
for family or personal use, are not expenses
that can be deducted from the gross profits
or income in making annual returns. 1t
was manifestly the legislative intention
that the $1,000 exempt from the payment
of the income tax should be applied to
the above-enumerated expenses and all per-
sonaI expenses for the maintenance of the
family and household of the taxpayer re-
ceiying the benefit of the exemption.
! 10. The national, State, county, school
I and municipal taxes deductible from in
| comes comprise such internal revenue taxes
as have not been included in the expenses
of the business. and all such State, county,
school and municipal taxes are assessed
ratably upon all persons liable to such as
| sessments made upon the real estate, but
assessments made upon the real estate OF
a particular locality on account of street
| improvements, sewerage. street grade. or
! a+bar vap~aypuoepf< Intended RI hapadt tho