The herald., 1895-02-18
T IN YOUR STATEMENTS
e income Tax Law Goes Into
Effect March lst
no EXTENSION OF TIME
cl- Points of the Law Not Generally
Understood
p The Following Article Carefully and You
cannot lake Mistake--The Penalties
Very Severe
EXTENSION OF TIME


Revenue Collector G. s. Vance and com
p with the requirements of the new in
come tax law. If your income is $35OO,
but not over $1,000, you have no tax to pay,
hNy you must make out a statement Just
Ene samc, and the penalties for failing to
comply with the law are severe enough to
make it worth your while to obey it with
out amy foolshness.
Ail statements must be in on or before
March lst, next. There is an impression
prevalent that the time for filing the state
ments has been extended to April 10Th by
Congress, but this is erroneous, and the
people with incomes within the limit had
better file their statements within the
neVl Two weeks, or they will get into
troObiC.
Another thing not generally understood
is hat where there are two or more in
comes in one family, they are all added
together and but $4,000 deducted.
Ior instance, if "a man has an income
o. 1880 and his wife or one of his minor
children has an income of another $4,000,
Die must pay taxes on $4,000, as he gets
llyantage of but the one exception, the
idea Of the law being that the $4,000 in
come exempted is sufficient to support
one family
Deputy Collector Vance is rushed with
work and the income statements, which
are pouring in by the score daily now
keep him more than busy. In many
cases questions arise on which special
grams have to be sent to Washington. As
the time for filing the statements grows
shorter and the work increases, there will
be no time left for the securing of special
rulings, and those who put off filing their
statements until the last day, may find
that they will have to pay for their tardi-
ness.
The law prohibits the deputy collectors
from showing the income statements or
gwen telling who has filed statements.
They are bound to absolute secrecy as to
Tue incomes, and hence the fling of the
yatements gives no information to anyone
bllt Government officers.
he law applies to individuals and cor
9crations in different manner. That
sho people may fully inform themselves as
q she income tax, the most important
sclions of the law are given below. The
Glowing is the gist of the law as it ap-
II TO corporations:
40 after the 1st day of January, 1895,
at until the 1st day of January 1900,
there shall be assessed levied, collected
paid annually upon the gains, profits
M ncome received in the preceding cal
ar year by every citizen of the United
.es, whether residing at home or
road, ana every person residing therein,
ther said gains, profits or income
la derived from any kind of property,
a,dds, interest, dividends or salaries or
Eom any profession, trade, employment
oG vocation carried on in the United
* 2s or elsewhere, or from any source
whatever, tax of 2 per centum on the
amount so derived over and above $4,000;
aHd a like tax shall be levied, collected
and paid annually upon the gains, profits
aud Income from all property owned and
every business, trade or profession
rried on in the United States or by per-
sons without the United States. And the
ID, herein provided for shall be assessed
bY the Commissioner of Internal Revenue
and collected, and paid upon the gains
profits and income for the year ending
tIe 3lst day of January next preceding
tAe time for levying, collecting and paying
said tax.
Provided, also, That in comput-
ing he income of any person. corpora
tiun, company or association there shall
uat be included the amount received from
amy corporation, company, or association
as dividends upon the stock of such cor
poration, company, or association if the
taN Of per centum has been paid upon
ils net profits by said corporation com
paay, or association as required by this act
The taxes on incomes herein imposed
shall be due and payable on or before the
let day of July in each year; and to any |
sum or sums annually due and unpaid |
after the lst day of July as aforesaid, and |
ion ten days after notice and demand |
thereof by the collector, there shall be
levied, in addition thereto, the sum of s !
per centum on the amount of taxes un- |
paid, and interest at the rate of per |
ctutum per month upon said tax from the |
time the same becomes due, as penalty, |
aNeept from the estate of deceased or in |
solvent persons.
hat mere snail be assessed, levied, and |
except as herein otherwise pro-
gded, tax of 2 per centum annually on |
las net profit or income above actual op-
1ratng and business expenses, including |
for materials purchased for man.
liacture or bought for resale losses and |
interest ON bonded and other indebtedness
saving institutions, fire.
marine, life, and other insurance com
1auies, railroad, canal, turnpike, canal
lavi cation, slack water, telephone, tele-
Halh express, electric light, gas, water,
tre railway companies, and other cor
lo:alQns,. companies, or associations
loing business for profit in the United
'iaseS no matter how created or organ
2ed, but not including partnerships.
Ihat said tax shall be paid on or before
lH iilst day OF July in each year; and If
he president or other chief officer of any
fpufauon, company, or association or
u the case of any foreign corporation,
ompany, or association, the resident
manager or agent shall neglect or refuse
q tiie with the collector of the internal
eycnne district in which said corpora
lon, company or association, shall be
9cated or be engaged in business, state
leat verified by his oath or affirmation,
n such form as shall be prescribed bv the |
omniissioner of Internal Revenue, with
NE approval of the Secretary of the Treas
F, Showing the amount of net profits or
leume received by said corporation, com
3nv, or association, during the whole
ieudar year last preceding the date of
ing said statement as hereinafter re-
,red, the corporation, company or as
1ciatjon making default shall forfeit as
penalty the sum of $1,000 and 2 per cen
ni on the amount of taxes due, for each
lonth until the same is paid, the pay
cent OF said penalty to be enforced as pro-
led in other cases of neglect and refusal
make returns of taxes under the inter-
al revenue laws
The net profits or income of all corpora
ons, companies, or associations shall in ,
ude the amounts paid to shareholders, or ,
irried to the account of any fund, or
sod for construction, enlargement of
liant, or any other expenditure or invest {
ient paid from the net annual profits ,
lade or acquired by said corporations
or associations
That every corporation, company or as
,ciation doing business for profit shall [
AXE and render to the collector of its 1
election district, on or before the first {
'2nday of March in every year, beginning
Va the year 1885, full return, verified