Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-03-23

dld each occur? Are you citizen OF the
United States, and what is your occupa-
ton? How did you determine that debts
returned by you as worthless could not be
collected? What were the necessary ex-
penses.' and the amount of each class, In
cluded in the amount set opposite para
graph of .deductions?'"
A Return Required.
The law gives the deputy collector power
to increase the amount of the income as re-
turned If he believes that it is understated.
Persons having an annual income of less
than three thousand five hundred dollars
are not required to make and render an an
nual return, but in all cases where the an
nual income of any person exceeds the sum
of three thousand five hundred dollars,
whether it reaches the taxable limit of
four thousand dollars or not, the list or re-
turn should be made by such person, duly
verified and forwarded to the collector.
If a willfuily false or fraudulent return
is made the collector can add 100 per cent
to 1t as penalty.
1t is provided that any nonresident may
receive the benefit of exemption provided
for in the act by filing with the deputy col
lector of any district a true list of all his
property and sources of income in the
United States, and otherwise complying
with the provisions of this act, as if resi-
dent. In computing income such non-resi-
dent shall include all income from every
source, but unless he be citizen Of the
United States he shall only pay on that
part of the income which is derived from
any source In the United States. In case
such nonresident fails to file such state
ment the collector shall collect the tax on
the income derived from the property of
such nonresident situated in his district,
subject to income tax, making allow
ance for exemption, and all property be-
longing to such nonresident shall be liable
to distraint for the tax.
Az to Family Expenses.
Expenses for medical attendance, store
accounts, family supplies, wages of domes-
tic servants. cost of board, room or house
rent for family personal use, are not
expenses that can be deducted from the
gross profits or income in making annual
returns. 1t was manfcstly the legislative
intention, the treasury authorities main
tain, that the four tn yusand dollars exempt
from the payment of the income tax
should be applied to the above enumerated
expenses, and all personal expenses for the
maintenance of the family and household
of the taxpayer receiving the benefit of the
exemption.
The national. state county, school and
municipal taxes deductible from incomes
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 as are assessed
ratably upon all persons liable to such as
SeSSment, out assessments maze upon the
real estate of particular locality on ac-
count of street improvements, sewerage,
street grade or other improvements intend
ed to benefit the particular property in
cluded In said locality are not considered
as taxes which may be deducted from in
comes.
For Losses Incurred.
In estimating the amount of taxable in
come only such losses as shall have been
actually suffered, and the amount of which
has been definitely ascertained during the
year covered by the return, can be de-
Quoted from the gross profits for that year.
No deduction will be allowed for any losses
rot specifically described and set forth in
the annual return Of the person or cor
poration claiming the deduction. Persons
receiving fees or emoluments for profess
sional or other services, as in the case of
physicians or lawyers, should include all
actual receipts for services rendered in the
year for which return is made, together
with all unpaid accounts, charges for serv-
ices, or other income due for that year, if
gcod and collectble.
The annual return of merchants and
manufacturers of their gains, profits, or
income, should cover the business of the
year, the regulations provide, from the list
day of January to the 31st day of Deem