Year: 1871

columns a few days ago to certain
changes in the Internal Revenue law which
the Assessors have apparently overlooked IN
preparing blanks for the Income Tax TINS
wear. These changes are so important that we
may as well point them out again, now that
our citizens are called upon for their returns.
The law of 1868 gave the Commissioner OF
Internal Revenue authority to prescribe the
form and manner of making returns OF income,
and under this authority an inquisitoral ex-
animation into tho sources of every mans
gains and profits was put in force. But there
is no such authority in the present law. The
sources of income which are to be included
are indeed defined by the law, but no one is
compelled to disclose them to the Assessor.
1t is only enacted that every person
liable to the tax shall make and
render return Of the gross
amount of his income, gains, and profits as
"aforesaid;" :" and that "the Assistant Assessor
"shall require every such return to be verified
"by the oath of the party rendering it," This
"return of the gross amount" is very different
from the detailed statement of income, gains,
land profits which the Assessors are now ex-
acting, and the seventeen subdivisions OF
the return printed on page of the blanks
for this year, as well as the fifteen vexatlous
questions on page g. are clearly unauthorized.
AS the law gives the Assessor the right to in
crease the amount of the return eff he has
treason to believe that the same is under
"stated," and the only appeal from this increase
is to the Commissioner, many persons will prob
ably submit to the imposition rather than run the
risk of more serious annoyance; but it may
as well be understood that the examination Is
illegal.


A still more remarkable disregard Of the
alteration in the law is shown on page of
the blanks, where the form of an affidavit Is
given which "must be sworn and subscribed"
in the presence of the Assistant Assessor by
every person whose income last year did not
exceed $4,000, and who was therefore not liable
to the tax. The Act of 1870 is very clear on
this point. No one whose income did not ex-
ceed $1,000 is required to make any return or
statement whatever Sec. XI. reads: at shall
"be the duty of every person of lawful age
"whOSe gross income during the preceding year er-
"ceeded $4,000 to make and render a return"
&c. That portion of the same section which
empowers the Assistant Assessor to estimate
the amount where returns are not made ac-
cording to law, expressly limits the authority
to the case of any person having gross in
"come as above of $4,000 or more" who shall
neglect or refuse to make and render such
"return, or shall render false or fraudulent
"return." Persons therefore whose gross in
come during the year 1870 was not over $4,000
may safely disregard the Assessors notices.
| IL thereafter they should be assessed and taxed
| by estimate the tax would be in cOntravention
of the law, and the courts would not assist in
its collection.


The blanks give notice. it is true that Z" the
form and manner of declaring . :. that a
"pcrson is not possessed of a taxable
"income" are prescribed in accordance with
Sec. XIII. of the Act of July A. 1870
but that section does not convey the
authority which the Commissioner draws from
it. 1t provides "That any person, in his own
behalf or as such fduciary or agent, shall
be permitted to declare under oath that he, OF
his ward, beneficiary, or principal, was not
possessed Of an income of $4,000 liable to bt
assessed according to tho provisions of thi:
"act,' or that the tax has been paid in an.
other district. This is permissive, rot
mandatory clause. 1t enables o man whose
chief income is derived, for instance, from
dividends Of corporations which pay the TAI
i'll advance to be relieved of all further annoy
ance by swearing that his income "liable tC
be assessed was not above $1,000. Tn,
Commissioner stretches it to mean tha
it obliges every one whose "gross income
did not exceed $4,000 to make affidavit t.
that effect before the Assistant Assessor, il
spite of the plain fact that the duty of making
any return at all is expressly limited by Section
XII TO those whose income did exceed tha
limit. Upon the whole. however. we are no
! sorry that these unwarrmtablo Interpretation