The Montgomery advertiser., 1909-06-26


capital stock outstandinx Al she close
OF the year.
90 Total bonded ana other indeb-
tedness.
(sl Gross amount OF income DUR
ing year from all sources. and II or
ganized under the laws OF q foreign
country the gross amount Of its Income
derived by business transaction and
capital invested within the United
States.
90 Amount received by way Of al
vidends upon stock Of other corpora
tons or concerns subject to the tax
60 Total ordinary and necessary
expenses actually paid out Of earnings
in the maintenance and operation OF
the business and properties. and in the
case OF foreign companies. the cost Of
operations in conducting business
transacted within the United States.
(6) Total losses actually sustained
during the year and not compensated
by insurance or otherwise, stated sep.
arately any amount allowed for de-
probation OF property; and in the case
Of insurance companies the sums re-
Quired by law to be carried to prem
ium reserve fund. and In the case OF
a concern organized under the laws
Of foreign country. losses actually
sustained by II In business conducted
within the United States, not compen.
stated by insurance. or otherwise. stat
ing separately any amounts allowed
for depreciation of property. and II
the case OF Insurance companies the
sums required by law to be carried t.
premium reserve fund.
s(7) Amount Of interest actually
paid on bonded or Indebtedness
to an amount not exceeding
paid up capital stock. or in case Of a
foreign corporation, not, exceeding the
proportion OF its paid up capital stock
which gross income from business
In the United States. bears to gross In
come from all sources within and with
out the United States.
fs) Amount paid for federal or To-
cal taxes.
co. Net income after making the de,
auctions authorized.
Local collectors will transmit the re-
turns forthwith to the commissioned
Of internal revenue In Washington.
Can Examine BoOka.
Upon evidence justifying the opinion
that the return by corporation Ia
incorrect, or whenever insufficient OF
no return has been made. the commits
sioner Is empowered to designate any
regularly appointed revenue agent to
examine the books Or papers Of such
corporation. and take testimony of a
responsible officer OF the corporation In
order to produce the Information re-
cuired for the purpose of assessing the
tax. The commissioner Is authorized
also to invoke the aid of any United
States court to require the attendance
of such officers or employees and the
production Of books and papers. Upon
the information so acquired the COM
missioner OF Internal revenue may
amend any return or make a return
where none has been made.
Returns are to be retained by the
commissioner who will assess the tax.
In the event Of any. return being made
with false or fraudulent intent the
commissioner Is required to add 100
per cent OF such tax, and in cases of
neglect or refusal to make return. or
to verify the same. the commissioner
Is to add so per cent to the tax. When
neglect is occasioned by sickness or the
absence of a responsible officer of the
corporation subject to the tax collec-
tor In allowed to extend the time. not
exceeding thirty days. Assessment
made by the commissioner must be
paid by the corporations before June
goth of each year.
After assessments have been made
the returns of corporations must be
filed in the ONCE Of the commissioner
of internal revenue and they will
then constitute public records and as
such will be opened for inspection. For
the protection Of a corporation against
the wrongful use of information tho
following is provided: rg
ut shall be unlawful for any col !
lector. deputy collector. agent clerk
or otner omcer or empIoye OF the
United states to divulge or to make
known in any manner whatever not
provided by law to any person any In
formation obtained by him In the dis
charge of his of1icial duty, or to d.
vulge or make known in any manner
not provided by law any document re-
ceived. evidence taken or report made
under this section except upon the
special direction OF the president; and
any offense against the foregoing pro-
vision shall be a fntsdemeanor and be
punished by q fine not exceeding one
thousand dollars or by imprisonment
not exceeding one year. or both. at
the discreation of the court"
II any corporation sub5ec. to the tax
refuses or neglects to make return In
the manner required or shall make
false or fraudulent return 1t Is liable
to a penalty of not less than 81. 900 and
not exceeding $4,000.
When any person authorized by law
to make or verify a return shall make
false or fraudulent statement for
the purpose of evading the assessment,
he becomes liable to hne not exceed
ing $1,000 or q prison sentence Of not
more than one year, or both.