The sun. [volume] (New York [N.Y.]) 1833-1916, 1912-03-02
Second
Annual Exhibition
Paintings
BY THE
OLD MASTERS
AT THE
v. C. Fischer Art Galleries
ACT Fifth Avenue
Opposite the Public Library. New YorD
AdHpissfea ky Gard
Opposite the Public Library. New YorD
ASnDissfes by Gard

report. The Collector or deputy collector
, is empowered to increase the amount OF
any return when he has reason to believe
| that the same In understated. This
power, however. is cirtailed TO the extent
that no such increase shall be made ex-
cept after due notice and upon proof of
the amount understated. In case any
person having n taxable income neglects
or refuses to make return II shall be the
, duty OF the Collector to make such return
according to the best information he can
obtain and TO add 81 per cent. AZ a pen
atty to the amount Of the tax due on such
q return. In cases Of false returns the
penalty to the amount OF tax ascertained
to be due.
1t Is further provided that any person
shall he permitted TO declare under oath
that he or she is not possessed OF an in
come Of s.. 900. and il the collector shall be
such person shall be exempt for that year;
also IL the return Of any person shall have
been increased by the collector such per-
son may be permitted 10 prove the amount
liable to be assessed. Such proof shall
not be considered as conclusive ofthe facts
and no deductions claimed in such cases
shall be made or allowed until proved by
the Collector.
Every taxpayer is given the right to
appeal from the decision OF the deputy
collector OF the district and. II neces-
sary to the Commissioner Of Internal
Revenue, whoce decision shall be final.
The bill provides for n hearing before the
Internal Revenue Commissioner upon
the service Of notice. The Government.
however. is empowered to take testimony
on notice to rebut the testimony Of wit
nesses examined by the person who is
taxed
All assessments and notices OF ASSESS
ments shall be made before the first day
of June. and are payable before June 30
each year. The Commissioners OF Inter-
nal Revenue is empowered to make col
lections for fraudulent returns any time
within three years after the return. For
failure TO pay the tax by June 80 a penalty
OF per cent. will be imposed and interest
at the rate OF cent per month.
Government paymasters and disbursing
officers are authorized to withhold from
the incomes of Government employees
liable under the bill the ! per cent. tax.
Every person. firm or corporation who
pays any officer or employee a salary or
any other compensation. including in
terest or accrued profits in excess OF
s.. 900 year shall render return to the
deputy collector and shall deduct and
pay the tax to the Government.
The bill also provides that every lessee
or mort gagor OF Zeal or personal property
who pays To the lessor or.mort gagee in
teTe>t or compensation IN excess oil 80 .OO.
and every trustee. executor. administra-
tor. agent or receiver paying any person
the taxable amount shall make return
AND deduct the tax Persons whose in
come is trapped in this way will not he
obliged TO make return unless they have
other sources Of income.
A few persons are fortunate enough to
escape the operation Of the bill. Salaries
paid to State. county or municipal officers
are exempt. and 40 also is the interest
on bonds or other obligation OF a State
and its political subdiv isions. Also the
proceeds Of life insurance policies paid
upon the death of the persons insured
are not TO be included in computing the
net income All property passing by will
or by interstate laws or transferred by
deed or gift to take. effect in possession
after the death OF the donor shall be
exempt.
The further penalty Of not less than
$50 and not exceeding $500 is prescribed
for persons who refuse or neglect to make
a return or render fraudulent return
Furthermore the making OF fraudulent
return with intent TO evade the ASSESS
ment is declared to be misdemeanor and
a fine not exceeding $1,000 or imprison-
ment for year or both is prescribed by
the bill.