The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1895-02-23
The INCOME TAX.
Answers to Some of the Numerous Qae'-

.-gHafH TrFalr EEslHrE aEHE sE.H
lions That Have Ieen Asked .Abont 1t.
Dubuque Telegraph.
All income tax reports are due the first
Monday In March, and while the tax bears
no penalty until July 1 next yet it is dus
with the report and those disposed to hel3
Uncle Sam out of u tight pinch will pay up
as promptly as possible. Many reports
have already been received.
One writes that he has to make reports
for " banks and another corpora ton.
He says he can't get the reports ready by
the irst Monday in March and he wants 10
know whether the collector can grant him
However a proposition to extend the time
thirty days Is now under consideration In
congress. Z
Most of the correspondence relates to co
operative creameries. The secretaries
write to know whether these %organiza-
lions are not exempt under the law. they
was offered in the house, but 1t was Note3
down. Again the secretaries want u
know o they can report net income
when the company has none. the product
being divided pro rata among the mem
hers. The way to do 1t. the collector an
swers, is to calculate the market price OF
d 5hd butter tier pro %ns &c dr1 the e past ,hs y mII and and
cream consumed and the opcratihs eS.
penses. The remainder will be the net
INCOME on which the 2 per cent tax Is due.
Some individuals want to know whether
they are obliged TO make reports II their
Incomes are less than $4,000 II more than
s5.eoo. The collector answers yes, b Only
those whose Incomes exceed $1,000 are liza
pie TO the tax. Losses on real estate
bought within two years cannot be de-
Quoted.
Some men haven't found out yet tina the
corporation is liable to tax OIL Its net. in
come last year whether 1T be more or less
than $1,000.
Some corporations have reported net In
comes or $4,000 and have further reported
that these incomes have been expended In
salaries to officers who are stockholders
III The rnrnnTa Ifnn N'hnV.a tho On la rtpy
seem too large for the size of the corpora-
ton the law makes 1t the collectors duty
70 Investigate ana II he finds evidence
that the salaries Were created for the pur-
pose OF e|ading 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 off his hands.
me secretary of one of these cooper
atiye creamery companies, a man evi,,
IDENTITY not born to command. writes that
ne commands a salary of $50 a month.
This is one of the cases Mr.. Kelly will not
investigate.
not tell what their incomes last year We're
because their fiscal years end July | or
AUGUST l. So much the worse for the cor
the corporation shall SO keep its books as
10 be able to report its net income for the
year ended December 81.
Ihe law m building and loan as.
soclations which loan to stockholders only.
ioallng occasionally to persons not stock
holders are liable to the tax.
one man wants the collector to keep
his report, out Of the newspapers. The coll
lector will do so. If the collector discloses
the contents of any report he is liable to
suspension. fine and imprisonment. The
even the individual who made 1t, is liable
10 heavy penalties.
The secretary Of a corporation not ex-
empted writes: w had no net income
last year; We lost money. Must we re-
port?' The collector answers yes.
y man who held 10000 In stock In "a
last year ana was compelled TO cut down
Its capital one half 80 that he lost s.. 0N.
lie wants TO know whether he Ia entitled
to. deduct This from his income. Ger
tainly," replied Collector Kelly.
A democrat who Is a stockholaer in a
bank makes a report and adds: This in
come tax iniquily drives me out OF the
democratic party. | go over to the