State Of New York et al v. Mnuchin et al

Filing 47

DECLARATION of Owen T. Conroy in Support re: 44 CROSS MOTION for Summary Judgment .. Document filed by State Of Connecticut, State Of New York, State of Maryland, State of New Jersey. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8, # 9 Exhibit 9, # 10 Exhibit 10, # 11 Exhibit 11, # 12 Exhibit 12, # 13 Exhibit 13, # 14 Exhibit 14, # 15 Exhibit 15, # 16 Exhibit 16, # 17 Exhibit 17, # 18 Exhibit 18, # 19 Exhibit 19, # 20 Exhibit 20, # 21 Exhibit 21, # 22 Exhibit 22, # 23 Exhibit 23, # 24 Exhibit 24, # 25 Exhibit 25, # 26 Exhibit 26, # 27 Exhibit 27, # 28 Exhibit 28, # 29 Exhibit 29, # 30 Exhibit 30, # 31 Exhibit 31, # 32 Exhibit 32, # 33 Exhibit 33, # 34 Exhibit 34, # 35 Exhibit 35, # 36 Exhibit 36, # 37 Exhibit 37, # 38 Exhibit 38, # 39 Exhibit 39, # 40 Exhibit 40, # 41 Exhibit 41, # 42 Exhibit 42, # 43 Exhibit 43, # 44 Exhibit 44, # 45 Exhibit 45, # 46 Exhibit 46, # 47 Exhibit 47, # 48 Exhibit 48, # 49 Exhibit 49, # 50 Exhibit 50, # 51 Exhibit 51, # 52 Exhibit 52, # 53 Exhibit 53, # 54 Exhibit 54, # 55 Exhibit 55, # 56 Exhibit 56, # 57 Exhibit 57, # 58 Exhibit 58, # 59 Exhibit 59, # 60 Exhibit 60, # 61 Exhibit 61, # 62 Exhibit 62, # 63 Exhibit 63, # 64 Exhibit 64, # 65 Exhibit 65, # 66 Exhibit 66, # 67 Exhibit 67, # 68 Exhibit 68, # 69 Exhibit 69, # 70 Exhibit 70, # 71 Exhibit 71, # 72 Exhibit 72, # 73 Exhibit 73, # 74 Exhibit 74, # 75 Exhibit 75, # 76 Exhibit 76, # 77 Exhibit 77, # 78 Exhibit 78, # 79 Exhibit 79, # 80 Exhibit 80, # 81 Exhibit 81, # 82 Exhibit 82, # 83 Exhibit 83, # 84 Exhibit 84, # 85 Exhibit 85, # 86 Exhibit 86, # 87 Exhibit 87, # 88 Exhibit 88, # 89 Exhibit 89, # 90 Exhibit 90, # 91 Exhibit 91, # 92 Exhibit 92, # 93 Exhibit 93, # 94 Exhibit 94, # 95 Exhibit 95, # 96 Exhibit 96, # 97 Exhibit 97, # 98 Exhibit 98, # 99 Exhibit 99, # 100 Exhibit 100, # 101 Exhibit 101, # 102 Exhibit 102, # 103 Exhibit 103, # 104 Exhibit 104, # 105 Exhibit 105, # 106 Exhibit 106)(Conroy, Owen)

Exhibit 13

l~IFTY-TH

nrn

OONGH.ESS.

SEss. II. Orr. M!J.

JS(]4.

553

SEC. 27. That from n11<1 after tlte first day of ,J:uman·., eii.diteen hun- I:<TER:<ALta\:,
..
J:r:,·~:<uE.
"--'
Income
drcfl and ninety-five, and U11ti1 tho first day of Jam1:uy, ui11etee1~ !mu- T1»0 11er reut on
dre<l ' there shall be assessed ' le,·ied ' collected 7 arnl ))aid rnimrnllv 1111011 ~tho\•e $4,000, trom ,,i.,, .•
Y"art.r i?ni:'"•
,
,
,
•
•c
1895
tlic gaius, profits, :mfl mcorne rnceivetl 111 the ])!'t:c:cdrng e;i.lcllclar year 111 rnuo.
by every citizen of tlte United States, whetl1er residing at home or
abroad, and eYCJ)' person resirling tl1erei11, wl1ether sairl gai11s, prulits,
or income be tleriverl from auy kiHd of property, re11ts, iHterest, (li\·ide1uls, 01· salaries, or from 1111y protCssinH, trn11e, cmploy11wnt, or yoeati011 canied <rn i11 the UnHed States or elscwlierc, or from :111y othe~·
source "·hakvcr, a tax of two per cCJ1tnm on tlte amonHt so <leri\'t!tl
over an<l abon~ fonr tl10usai1d dollars, and a like tax sliall be Jcyied 1
collected, and !)aid amrnally upon the gains, prolits, and i11come from
all pt·operty ownetl and of every busiuess, trade, or profession carried
on in the Unite1l States hy persons rc,;irling without the U11ited States .
.Arnl tile fas. herciu proYidml for shall be assesse1l, by the Commissioucr
of J11tcnrnl I\e\'CllllC allll t;ollected, aml paid upon the gains, profits,
and income for the year cmling the thirty-first day of December next
pre{;cding the time for levyiug, collecti11g, and paying said t:G.
SEc. 28. That in estirnati11g the gains, pro ti ts, and income of any J~•timatiag income.
person there shall be included all income derived from i11tel'est upon
notes, bonds, nnd other securities, except such bonds of tlte United
States the principal and i11terest of which are by the law of their issuance exempt from all Federal taxation; profits realized witliin the year H"al cgtn~• sales.
from sales of real estate purchased within two years previous to tl1e ., 1 ,~_utcre•t from louas,
close of the yeal' for which income is estimated; interest received or
accruc1l upon all notes, bonds, mortgages, or otlter forms of indebtedness bearing intert'st, whether paid or not, if good and collectible, less
tlte interest which has become due from said person or which has been
pa.itl hy him dariug the year; tlte amount of all premium on bouds,
,rnltes, or eonpo11s; the amouut of sales of live stock, suga.I', cotton, Sale•.
wool, butter, cheese, pork, beef, mutton, or other meats, hay, and
grain, or other vegetable or ot,lter productions, being the growth or
produce of the estate of such pers011, less the amount expended in the
purchase or prorluction of said stock or produce, and not iuclnding any
part thereof consumed directly by tl10 family; mcmcy and t11e value of wn., etc.
all personal property acquired by gift or inheritance; all otlier gains,
profits, aud income derived from any source whatever except that portion of the salary, compensation, or pay reccfred for services in the Official Federal salciYil, military, naval, or other service of the Uuiterl States, including arie. excepted.
·Senators, Representatives, arnl Delegates in Congress, from _which the
tax has been deducted, an1l except that portion of any salary upon which
the employer js required by law to withhold, aud does withhoJrl the tax
and pays the same to the officer authorized ·LO receive it, In computiug Dc<luctions.
iucomesthe 11ecessaryexpe11sesactuallyincurrcd in carryiugon any bnsi- Po•t,p. 971 ·
nf'.ss, occupation, or profession shall be de<lneted and also all interest due
or paid within tho year by snch perso1i on existing_indebtmlncss. And
all national, State, county, school, and municipal taxes, not including
those assessed against local benefits, paid within the :year shall be
deducted from the gains, profits, or income of the person who has
actually paid the same, whether such perso11 be owner, tenant, or
mortgagor; also losses actually sustained during the year, incurred in
trade or arising from fires, storms, or shipwreck, aml not compensated
for by iusurance or otherwise, and dehts ascertaiued to be. worth1ess,
but excluding all estima.ted depreciation of values and losses within
the year on 8alcs ot' real est:tte purchased within two years previous to
the ycnr for which income is cst.iml1ted: Provided, That no deduction 1
r'rovi•a•t· ~ .
,
t
'd
,.
l . .
t
nymen s ,or 1mshall b c mad e f 01' ·any amoun pai out 101' new nn11 mgs, permaneu ;irovowents excepted.
(
improvements, or betterments, made to increase the value of any property or estate: Provided further, That only one deduction of four eS~ 1f;,,::lJ;,~~~ctlon
thonsand dollars shall be made from the aggregate ilicome of all the
members of any family, composed of one or both parents, and one or

554

FIF"l'Y-THIHD CONC·H{.ESS.

SES8. II.

Cu. 34!.I.

18!:14:.

more minor children, or lmshaml and wifo; that guardians shall he
allowed to 1t1akc :t deduction in !it\'Or of caeh Hll!l eYery warcl, except
that in case where two or morn wards are eo111pl'iscd in one falllily, and
. .
. lmvc joint propet't.,V intereRt:-; 1 t.l1e aggreg:Lte <leduetiou ,in their favor
.,i~,1~~{'~;tt" ~i1.i~n; shall not excectl fonr thousa111l 1lollars: Ani/ pnn.:idCfl jul'ther, 'flrnt in
g:11ins.
1:ascs where tlic salary or otlter cumpen"atio11 pni<l to any pcr:-;on in the
e111plorme11t or scrdcc of the U11ited States shall not cxcec11 the rate
of four thousand dolla.rs per a11m1111, or shall !Jc !Jy fees, or 1111ccrtain or
irregular in the a.mount or iu the Lime dnri11g which the sarne shall
lmve accrnell m· been crwnetl, snch salary or otlier com1)ensation sliaH
be included in est.in1ating· tho mi mull gaino;, 11rullts, or i!lcomc of tlte
pel'~o11 to whom t.Jie same shall !Jan~ beeu pa.id, and shall iuclrnle that
portion ofauy illcome or salal'Y npou which a tax has 11ot bee11 paid by
the employer, where the employer is require!l by law to pay 011 the
'l'n" pai•l ,1;,·ruem1~ excess ovel' four thonsaml dollars: Provitlcrl also, That in cou1pnting
O~l'OptC•l.
ti 1c 111come o t' auy person, corpora t'
•
.
' .
.
"
,
.10n, couqmuy, or asso(:mtwn t l 1ere
10
•1.p.a.1.
shall not be i11chulcll the amonut received from any eorporatioi1 1 company, or associat.ion as divide11ds upon the stock of such corporation,
cornpauy, 01· association if tlte tax of two per ccatmn has been J>nid
upon its 11et protits by said corpora.tiou, compa.uy, or assMia.tiou as
reqniretl by this Act.
·
J:eturn" hy pmonK
SEC. 2fl. That it shall be the duty of all persons of 1awflil age having
rr.c !h·iu,!! rnorc thnn a 11 inCOllle Of IHOI'O th all three tho a sand five hnudred (]OJlarS f()J' tile' t", '"·
<~,500 a ye~r.
~
u .:s..
able year, compnted on the ha.sis herein prescriued, to make n11tl rnn1lcr a
list or retnrn, on 11r before the da.y providetl by bw, in snch form and
1mrn ner as may he rlirected by the Commissio11er of Interual Heveune,
·with tlie approval of the Secretary of the Treasury, to the collector or
a. deputy collector of the district in which they reside, of the amonut of
Trnstee.::i: etc.
tlici1· income, gai11s, and profits, as a.forcsairl; and all guardim1s and
trnstces, executors, mlministrn.tors, agents, rccciYers, a111l all per. sons or col'porntions acting in any fiduciary capacity, shall make
aurl i-emler a. list or return, as aforesaid, to the collector or a
deputy collector of the district iu which such person or corporation
aetiug in a Jidnciary capacity resides or docs business, of t.110 amount of
income, gains, aud prufits of any minor or })erson for whom tlicy act,
but persons h:wiug less than threcthonsancl ti ve hundred dollar8 income
,,..criJlcaMon.
arc uot rcq uired to make such report; au d the collector Ot' deputy collector,
shall require every list or return to be verifie<l by the oath or aflirma.tion
of tl1e party rendering it, md may increase the amount of any list or
et~'.cturn hy collect.or, l'l.'.tllrll if he has l'CaSOll to believe that the SH.me is nndCl'Stated; lH\d in
case any such person having a taxaMe income shall neglect or refuse to
make and render such list and return, or shall render a willfully false
or fraudulent list or return, it shall be the duty of the collector or deputy
collector, to nrnke such list, aceonling to the best information he can
obtain, by the examination of such l1erson, 01· a.ny other evidence, :tud to
l'"naliy rorrefusal. atl<l fifty per ceu tum as a penalty to the amotwtof the tax due Oil such
·'
list in all cases of willful neglect 01· refusal to make and reudcr n list or
P enaIty f or ,
,rauuU·
.
Jentretnrns.
re t urn; aucl 111 a ll cases o f a w1·11" 11y f.a 1.se or f rau d ule1tt 1·
•Ll
1st or
return having been rendered to a(ld one humlretl per centum as
a penalty to the amonnt of ta.x ascertainecl to be (lne, the tax aml the
additions thereto· as a penalty to be assesse<l and collecte1l in the
manner provideu for in other ca8es of willful neglect or refusal
.
to render a list or return, or of rendering a false or fraudule11t return:
P 0 ""0
~
Provided, That .any r)ersou, or corporation in his, her, orl its own behalf,·
1 >' '1ara·t·
r.c
ions ,or ex.
·
•
d
eroptiona before c~J. or as such :fiduciary, shall be permitted to eclare, unc er oath or affir.
Iector, etc.
matiou, the form and manner of which shall be prescribed by the .Oom·
missione1' of Internal Revenue, with the approval of the Secretary of
the Treasury, that ho, she, or his or her, or its war!l or beneficiary, was
not possessed of an income of four thousand dollars, liable to be assessed
aCcol'ding to the llrovisions of tllis Act; or may declare that he, sl1e, or
it, or his, her, or itA ward or beneficiitry has been assessed and l.tas paid
an income tax elsewhere in the same year, under authority of the.United
1

1