On July 4, 1864, a special income duty, or tax, was levied on October 1, 1864, upon the gains, profits or income for the year 1863, of all persons, residing in the United States, or of citizens of the United States residing abroad, a duty of 5 per cent, on all sums exceeding $600.  Form No. 24 was provided by the Commissioner of the Internal Revenue.  This sounds like something from today, but in 1864 this tax was very real, and doubtfully appreciated by the citizens.  The post in The New York Times is at the bottom of the page, for your perusal.  In it assessors and assistant assessors are given leeway to bring all those citizens whose paperwork does not appear credible, or undervalued, that person will be summoned, with all books of accounting to prove his claim.  And if a person was found to give fraudulent information, the assessor will estimate the income and assess the duty thereon, and add fifty per centum to such duty.

The following is the alphabetical list of names, with amount of income and tax paid from Washington County, Kentucky.  One of my great-great-grandfathers is listed – William Peter Montgomery.

• Askins, E. D. – Special Income – $407.00 – $20.35
• Barron, J. B. and Am. R. Brown – Special Income – $1,687.00 – $84.35
• Barron, J. B. – Special Income – $360.00 – $18.00
• Barron, R. J. – Special Income – $1,971.00 – $98.00
• Burch, James – Special Income – $480.00 – $24.00
• Bovine, J. H. – Special Income – $770.00 – $38.50
• Bosley, John – Special Income – $112.00 – $5.60
• Bovine, T. R. – Special Income – $492.00 – $24.60
• Bosley, C. T. – Special Income – $887.00 – $44.35
• Best, D. K. and Ex. S. Reading – Special Income – $469.00 – $23.45
• Best, D. K. – Special Income – 1,900.00 – $95.00
• Booker, R. J. – Special Income – $1,470.00 – $73.50
• Bovine, William – Special Income – $752.00 – $37.60
• Bovine, E. B. – Special Income – $1,475.00 – $73.75
• Burton, Julius – Special Income – $460.00 – $23.00
• Bush, J. P. – Special Income – $960.00 – $48.00

• Colter, Isaiah – Special Income – $1,256.00 – $62.80
• Chesser, W. H. – Special Income – $450.00 – $22.50
• Cull, James T. – Special Income – $470.00 – $23.50
• Crouch, A. D. – Special Income – $210.00 – $10.50
• Davidson, E. L. – Special Income – $11,790.00 – $589.50
• Dennis, Isaac – Special Income – $445.00 – $22.25
• Ellery, John – Special Income – $957.00 – $47.85
• Ewing, John T. – Special Income – $3,515.00 – $175.75
• Freeman, J. H. – Special Income – $755.00 – $37.75
• Foster, David – Special Income – $90.00 – $4.50
• Foster, S. G. – Special Income – $130.00 – $6.50
• Fenwick, T. Y. – Special Income – $1,158.00 – $57.90
• Fields, Wilfred – Special Income – $292.00 – $14.60
• Ferrell, James – Special Income – $19.00 – $0.95
• Goatley, John – Special Income – $383.00 – $19.15
• Grundy, S. R. – Special Income – $2,800.00 – $140.00
• Grigsby, James – Special Income – $994.00 – $49.70
• Gregory, C. R. – Special Income – $400.00 – $20.00
• Hardin, Joseph – Special Income – $760.00 – $38.00
• Hundley, A. B. – Special Income – $140.00 – $7.00
• Harber, S. W. – Special Income – $723.00 – $36.15
• Hughes, J. R. – Special Income – $1,004.00 – $50.20
• Hamilton, Alex – Special Income – $1,259.00 – 62.95

• Hiatt, W. G. – Special Income – $123.00 – $6.15
• Hughes, D. B. – Special Income – $140.00 – $7.00
• Harber, D. M. – Special Income – $920.00 – $46.00
• Hiatt, E. R. – Special Income – $839.00 – $41.95
• Hardin, M. R. – Special Income – $870.00 – $43.50
• Hays, Sr., William – Special Income – $1,809.00 – $90.45
• Hall, S. T. – Special Income – $245.00 – $12.25
• Jeffries, Richard – Special Income – $130.00 – $6.50
• Isham, Henry – Special Income – $300.00 – $15.00
• Kelley, Daniel – Special Income – $945.00 – $47.25
• Kirkendall, Samuel – Special Income – $1,020.00 – $51.00
• Kirkendall, J. S. – Special Income – $1,135.00 – $56/85
• Lyddan, P. – Special Income – $270.00 – $13.50
• Logsdon, B. – Special Income – $888.00 – $44.40
• Litsey, John – Special Income – $1,798.00 – $89.90
• Litsey, Uriah – Special Income – $935.00 – $46.75
• Logsdon, William – Special Income – $881.00 – $44.05
• Leachman, Thomas – Special Income – $321.00 – $50.65
• Logan, M. B. – Special Income – $321.00 – $16.05
• McElroy, R. Y. – Special Income – $1,080.00 – $54.00
• McShane, Thomas – Special Income – $260.00 – $13.00
• Mitchell, J. M. – Special Income – $1,612.00 – $80.60
• Montgomery, C. T. – Special Income – $200.00 – $10.00
• Montgomery, W. P. – Special Income – $608.00 – $30.40
• Moore, Milton – Special Income – $437.00 – $21.85
• Mitchell, J. B. – Special Income – $364.00 – $18.20
• McElroy, H. L. – Special Income – $550.00 – $27.50

• McElroy, C. R. – Special Income – $360.00 – $18.00
• McElovy, Daniel – Special Income – $997.00 – $49.85
• McElovy, S. R. – Special Income – $240.00 – $12.00
• McDonald, Z. – Special Income – $298.00 – $14.90
• McElroy, A. G. – Special Income – $422.00 – $21.60
• McElroy, Hugh – Special Income – $5,780.00 – $289.00
• McElroy, Anthony – Special Income – $6,127.00 – $306.35
• Montgomery, S. B. – Special Income – $1,299.00 – $64.95
• Montgomery, W. T. – Special Income – $272.00 – $13.60
• McAtee, R. – Special income – $132.00 – $6.60
• Montgomery, T. J. – Special Income – $1,190.00 – $59.50
• Montgomery, Thomas – Special Income – $100.00 – $5.00
• Mays, A. S. – Special Income – $674.00 – $33.70
• Miller, E. B. – Special Income – $1,628.00 – $81.40
• McKenna, A. – Special Income – $359.00 – $17.95
• McElroy, T. J. – Special Income – $3,000.00 – $150.25
• Montgomery, R B. – Special Income – $460.00 – $23.00
• Moore, John L. – Special Income – $325.00 – $16.25
• McMakin, W. B. – Special Income – $678.00 – $33.90
• McAlister, Daniel – Special Income – $486.00 – $24.30
• Moore, H. B. – Special Income – $800.00 – $40.00
• Montgomery, B. E. – Special Income – $1,090.00 – $54.50
• Montgomery, S. J. – Special Income – $785.00 – $39.25
• Nouman, G. W. – Special Income – $307.00 – $15.35
• Nall, L. C. – Special Income – $113.00 – $5.65
• Ozburn, H. P. – Special Income – $208.00 – $10.40

• Phelps, T. R. – Special Income – $935.00 – $46.75
• Peters, Samuel – Special Income – $507.00 – $25.35
• Parrot, R. F. – Special Income – $1,600.00 – $80.00
• Peters, R. S. – Special Income – $509.00 – $25.45
• Pinkston, Andrew – Special Income – $1,000.00 – $50.05
• Phelps, George – Special Income – $1,285.00 – $64.25
• Robertson, W. J. – Special Income – $275.00 – $13.75
• Read, Thomas – Special Income – $1,802.00 – $90.10
• Richardson, A. – Special Income – $550.00 – $27.50
• Rogers, Milton – Special Income – $1,511.00 – $75.55
• Reed, Nelson – Special Income – $1,119.00 – $55.95
• Rabourn, H. P. – Special Income – $201.00 – $10.05
• Ruce, J. D. – Special Income – $590.00 – $29.50
• Robertson, G. D. – Special Income – $418.00 – $20.90
• Reinhart, J. W. – Special Income – $529.00 – $26.45
• Shirley, James – Special Income – $210.00 – $10.50
• Shoemaker, John – Special Income – $400.00 – $20.00
• Shoemaker, W. – Special Income – $279.00 – $13.95
• Simms, T. W. – Special Income – $2,324.00 – $116.20
• Simms, John – Special Income – $4,425.00 – $221.25
• Smith, L. J. – Special Income – $407.00 – $20.35
• Stephenson, A. T. – Special Income – $1,847.00 – $92.35
• Spalding, T. B. – Special Income – $4,275.00 – $213.75
• Saveney, W. – Special Income – $652.00 – $32.60
• Shehan, W. – Special Income – $245.00 – $12.25
• Stiles, O. W. – Special Income – $2,888.00 – $144.40
• Shehan, Peter – Special Income – $805.00 – $40.25
• Stine, W. – Special Income – $928.00 – $46.40

• Thomas, John A. – Special Income – $335.00 – $16.75
• Thompson, S. – Special Income – $267.00 – $13.35
• Thompson, N. – Special Income – $1,545.00 – $77.25
• Thompson, M. – Special Income – $1,069.00 – $53.45
• Trent, J. M. – Special Income – $125.00 – $6.25
• Thompson, J. L. – Special Income – $258.00 – $12.91
• Thompson, C. R. – Special Income – $1,245.00 – $62.25
• Wharton, J. R. – Special Income – $302.00 – $15.10
• Wright, N. – Special Income – $188.00 – $9.40
• Wilham, D. – Special Income – $170.00 – $8.50
• Wilson, John – Special Income – $137.00 – $6.85
• Wheatley, N. K. – Special Income – $904.00 – $45.20
• Yankee, M. – Special Income – $597.00 – $29.85
• Yankey, A. G. – Special Income – $764.00 – $38.20
• Young, N. – Special Income – $423.00 – $21.15
• Yates, William – Special Income – $311.00 – $15.55
• Yocum, Isaiah – Special Income – $1,250.00 – $62.50

Grand total $6,968.95

The following article appeared in The New York Times about the new special tax.

The New York Times, New York, New York

Wednesday, July 27, 1864

The Special Income Tax – Regulations for its Assessment and Collection

Secretary FESSENDEN has just issued the following regulations for the assessment and collection of the Special Income Tax upon the income of 1863:

TREASURY DEPARTMENT, WASHINGTON, July 2, 1864.

The joint resolution imposing a special income duty, approved July 4, 1864, provides that there shall be levied on the 1st of October, 1864, upon the gains, profits or income for the year 1863, of all persons residing in the United States, or of citizens of the United States residing abroad, a duty of 5 per cent. on all sums exceeding $600. It is also provided that, in estimating income for this purpose, no deductions shall be made for dividends or interest received from any association, corporation or company, nor shall any deduction be made for any salary or pay received.

In order to facilitate the assessment of this tax, assessors are directed to scrutinize carefully the returns of income heretofore made to them for the year 1863 by persons residing within the United States, and to select all such as have been made in detail, in the manner provided upon Form No. 24, issued by the Commissioner of Internal Revenue, and with the accuracy and correctness of which they are thoroughly satisfied. When deductions have been made from any such return on account of dividends or interest received from any corporation, or on account of any salary or pay as an officer of the United States, the amounts thus deducted will be added to the amount heretofore assessed, and any income derived from interest upon United States securities will be included in the same total. The income thus determined may be entered in the list as the amount upon which the special duty of 5 per cent. is to be assessed.

Assessors will direct their assistants to procure returns from all persons residing in their several divisions who have heretofore made no return in detail, or with whose returns as heretofore made they have any reasons to be dissatisfied, and from the agents of all citizens of the United States residing abroad and belonging in their several divisions. Notice should be left with all such persons at least ten days before the 1st day of October, requiring them to make return, under oath or affirmation, on or before said 1st day of October, in the manner provided by the act of June 30, 1864. By the terms of that act the return must state the sources from which the income is derived — whether from any kind of property, or the purchase and sale of property, rents, interest, dividends, salaries, or from any profession, trade, employment or vocation, or otherwise. The distinction heretofore made between the incomes of residents and of non-resident citizens is set aside, and the latter are to be treated in all respects in the same manner as the former.

Assistant assessors will transmit the returns to the assessors of their respective districts as rapidly as they are received, and in all cases within ten days after the 1st of October. If any person shall have

neglected to give in a return in the form required, or if any person shall have given in a return which, in the opinion of the assessor, is false or fraudulent, or contains any understatement or undervaluation, it will be the duty of the assessor to summon such person, or his agent, to appear and produce all books of account containing entries relating to the trade or business of such person, and to summon any other persons, as he may deem proper, to give testimony, in the manner prescribed in section 14 of the act of June 30, 1864.

If upon such examination it shall appear that any person has made a false or fraudulent return, the assessor will estimate the income of such person according to the best information which he can obtain, and assess the duty thereon, and enter the same in the list, adding one hundred per centum to such duty. The assessor will, in like manner, estimate the income of all persons who shall have neglected to make return on or before the first day of October, and assess the duty thereon; and, except in cases of sickness or absence, he will add fifty per centum to such duty. No return can be accepted which is not verified by oath or affirmation; and if any such return is transmitted to the assessor, he will proceed in the same manner as if no return had been received.

Immediately thereafter the assessor will make up an alphabetical list of all persons who have been assessed for the special income duty in each division of his district, and will then advertise in some newspaper published in each county of his district, if such there be — if not, in some newspaper nearest thereto in the same collection district — the time and place, within said county, where said list may be examined; and the list shall remain open for ten days for the inspection of all persons who may apply for the same.

No relief from assessments which are made after the examination of witnesses, as provided in section 14, of the act of June 30, 1864, can be given by the assessor; but any persons aggrieved will have a right of appeal to the Commissioner of Internal Revenue. In all other cases the assessor may revise any assessment, including those made upon the basis of returns heretofore received; at any time before the first day of November, 1864.

It is explicitly provided by the act of June 30, 1864, that copies of all lists returned to the collector shall remain in the office of the assessor, and shall be open to the inspection of all persons who may apply to inspect the same. It is of especial importance that assessors give full effect to this provision with reference to the lists heretofore made up and containing the assessments upon the income for the year 1863, in order that the amplest opportunity may be given for the detection of any fraudulent returns that may have been made, and any omissions that may have occurred; and for this purpose assessors should seek the cooperation of all tax-paying citizens.

Assistant assessors will be particularly careful to obtain returns from persons employed in the service of the United States, whose names may not appear on the annual assessment list, as the special income duty upon their salaries, imposed by the joint resolution of July 4, is not to be withheld by paymasters, but must be assessed in the same manner us income from other sources.

Immediately after the 1st of November the lists made in accordance with these regulations will be returned to the several collectors in the manner provided by law, and the subsequent proceedings for the collection of the duty will be in all respects similar to those for the collection of taxes assessed in the annual list. W.P. FESSENDEN,

Secretary of the Treasury.