Iron County register., 1896-11-02
INCOME TAX RETURNS.
Regulations Approved by the Sec
retary OF the Treasury.
who Are Subject 70 the Taxation-How to
aAke Returns-Whatt the across Gains,
'FRONT.' and Income Include
Deductions Allowed.

WASHINGTON. Dec. 14.-The secretary
OF the treasury yesterday approved the
Income tax regulations. Every citizen
OF the United States, whether residing
At home or abroad, and every person
residing or doing business in the United
states who has an annual income of
more than 81, 500 is required to make
return under oath by the first Monday
IN March in each year. The first re-
turn Is to include all income received
IN the year 1894, from January to De-
cember 81. Guardians, trustees and
all corporations acting in any judi
cial capacity are required to make
similar returns for minors, wards or
benefciaries- Persons having less
than 50, 500 annual income are not re-
quired to make returns. All incomes
of 81, 900 and over are taxable at per
cent.
The person making return Is re-
quired to make affidavit that he has in
cluded in said return all gains, profits
and income from every source what
ever received by him or to which he is
justly entitled for that year, and that
he is honestly and truly entitled to
make all the deductions entered on his
returns and that he has truly answered
the interrogatories set forth on said
blank form.
The gross gains, profit and income,
returned by persons are to include:
Gross profits of any trade, or business
wherever carried on; rents received
or accrued during the year; profits
from sales of real estate purchased
within two years; farming operations
and proceeds; money and value of all
personal property acquired by gift or
inheritance; premiums on bonds,
stocks, notes and coupons; income
from trade or profession not by stated
salary and not heretofore enumerated;
from salary or compensation other
than that received from the United
States; from salary or compensation
paid by the United States; undivided
gains and profits of any partnership;
interest received and accrued from all
notes, bonds or other securities; inter
est on bonds Or coupons paid of any
corporation; dividends from corpora
tions; income of wife or minor child or
children; all other sources of income
not above enumerated
The deductions allowed on the re-
turn are: Four thousand dollars ex-
empt by law; interest due and paid
within the year; national, state, coun-
ty, school and municipal taxes paid,
not including assessments for local
benefits; amounts expended in pur-
chase or production of live stock or
produce sold within the year; neces-
sary expenses, specified by items, actu-
ally incurred in carrying on any busi-
ness or trade; losses actually sus-
tanned during the year, specified;
actual losses on sales of real estate
purchased within two years; debts
contracted and ascertained in the year
to be worthless; salary or compensa-
tion over "a, 900 from which the tax OF
per centum has been withheld by
disbursing officers of the United States
government; dividends included in the
statement of gross profits from corpo-
rations on which the 2 per cent. tax
has been paid by such corporation.
If any person fails to make return,
or makes false return, the collector
is to make return for him from evi,
dence obtained by summoning the per.
son and examining his books, and from
all other evidence obtainable, and shall
add so per cent. to the amount of tax
found due as a penalty for neglect and
100 per cent. penalty in case of a fraud.
ulent return.
All corporations, companies and as
sociations, both resident and foreign,
doing business in the United States
are required to make annual return OF
net profits on a separate blank to cover
the calendar year 1894. The exemption
of $4,000 allowed to persons is not tc
extend to corporations, but the return
must cover all net profits without ex
emption.
The annual return of corporations
must include: The gross profits from
all kinds of business; the expenses, ex
elusive of interest, annuities, or divi-
dends; the net profits, without allow
ance for interest. annuities or divi-
dends; the amount paid on account ot
interest, annuities and dividends; the
amount paid in salaries of s., 900 or less
to each employe; the amount paid in
salaries of more than $4,000 to each
employe and the name and address Oh
such employees
The gross profits must include: All
profits of any trade or business; inter
est or coupons, from bonds or other Sc,
curities of any corporation; dividends
received from any corporation; undi'
vided profits of any corporation
premium on bonds, notes or stocks
commission or percentages; interest or
government securities not exempt by
law; interest on other notes, bonds OF
securities; profits from sale of real es.
tate; from rents; profits from all other
sources, to be enumerated.
The operating expenses must in
clude: Interest paid or accrued within
the year on bonded or other indebted
ness of such corporation; losses actu
ally sustained during the year, which
must be separately stated and fully
described as to cause, date and amount
all taxes actually paid; salaries and
pay of officers and employees actually
paid during the year; rents and neces
Sary repairs; all other necessary eX
penses, which must be itemized and
fully explained in the return.
The net profits are to include: AL
amounts paid to stockholders; the
amount of undivided profits carried tC
surplus or any other fund; amount OF
net profit used for construction, en-
largement or improvement of plant
ali other expenditures or investments
from the net profits.
Certains specified corporations fol
charitable and like purposes and Ger
tain savings banks, mutual insurance
companies and building and loan asso
Citations are exempt from the income
L. 4 II.