Salt Lake City
Sept. 29 1870
Hon. C. Delano,
Commissioner Internal Revenue,
Washington, D.C.
Sir: Enclosed please find a copy of a letter just received from O.J. Hollister, collector of Internal Revenue for this District
It appears that he considers himself obliged, under instruction contained in a "printed circular from the Int. Rev. Bureau, dated July 15," to proceed with the collection of the assessment made against me as Trustee in Trust, by Mr. Assessor Taggart, for the sum of $59,338.51, as income tax for the month ending December, 1869.
You will perceive, by reference to the enclosed letter, that I am called upon to make this payment by the 15th day of Oct. proximo, or he will endeavor to enforce its collection. Now, Sir, as I am clearly of the opinion that this assessment is unauthorized by law, also very excessive, had the law authorized it, I deem it a fair case for remission or entire abatement. And as Mr. Taggart, so far as I am advised, has not acted in the matter as by you instructed under the Act of Congress approved July 14, 1870, I am, therefore, compelled, though reluctantly, to trouble you again with this unpleasant subject, it being the only way I am aware of to have the question at issue amicably adjusted.
I claim the Entire abatement of the tax for the following reasons:-
1st "Gifts of money, when clearly not in the nature of payment for service rendered, or other valuable consideration, are not liable to taxation as income." See "Series 3, No. 4, paragraph 19, Instructions to U.S. Assessors for the year 1867."
2nd The taxes are paid upon these gifts, so far as the same are liable to taxation, in the hands of the donor, as those amounts so donated are never deducted in making up the assessments of the people so donating; and these gifts and donations, although denominated tithing, are exclusively used for building houses of Worship, and for religious, benevolent and charitable purposes, consequently not liable to taxation.
3rd The assessment, <did the law allow it,> is excessive, as will be seen by Mr. Hollister's investigations and report made to the Department in March 1870.
4th. If, as is charged, it was true; which it is not, that this means is diverted from its legitimate purpose for speculation, it would become income in the hands of private individuals, and consequently subject to taxation as other income in their hands, and not in mine as Trustee-in Trust.
5th As regards the penalty assessed by Mr. Assessor Taggart, for refusing to make a return; a return was made within the allotted time of ten days, of the only property in my hands from which any income is derived as Trustee in Trust. The tithing being strictly gifts and donations, and of course not liable to taxation, no penalty should be assessed.
6th The Act of Congress, approved July 14, 1870, provides, in the latter clause of Sec. 8, that "For the purpose of allowing said deduction from the income of any religious or social Community holding all their property and the income therefrom jointly and in Common, each five of the persons composing such society, and any remaining fractional number of such persons less than five over such groups of five, shall be held to constitute a family, and a deduction of two thousand dollars shall be allowed for each of said families. Any taxes on the income, gains, profits of such societies, now due and unpaid, shall be assessed and collected, according to this provision, except that the deduction shall be
only one thousand dollars for any year prior to 1870."
From A communication received from Mr. Taggart dated August 1st 1870, a copy of which is hereby enclosed, I was requested to furnish him, "the number of persons who are Members of the Church of Jesus Christ of Latter-day Saints, which was immediately replied to, stating the number at fifty thousand; a copy of which reply is also herein enclosed. From this Correspondence I supposed that this tax was designed to be remitted under the provisions of the clause of the Act above recited, but it appears that Mr. Hollister either has no knowledge of this, or does not consider himself released from his responsibility as Collector therein,, I have, therefore, again of necessity solicited, and do hereby respectfully solicit your early attention to and favorable consideration of the subject of this unauthorized assessment, and that Mr. Hollister may be instructed to stay proceedings therein until the Department shall have sufficient time to act thereon.
Respectfully &c.
Brigham Young
Trustee in Trust of the C. of J.C of L.D.S.