Evening star., 1909-06-26

Annual Returns Required.
Every concern subject to the tax is re-
quired. on or before March 1 of each
year. to make true and accurate re-
turn. under oath affirmation of It's
president. vice president or other princi-
pal officer. and its treasurer or assistant
treasurer. covering the character of its
organization and the amount of business
transacted during the year. to the col
lector of internal revenue for the district
in which the corporation is organized:
or, In the case of foreign corporations.
stock companies, or insurance companies
in the place where its principal business
is carried on within the United States.
The return must. however. set forth:
l. Total amount of paid-up capital stock
outstanding at the close of the year ;t2)
total bonded and other Indebtedness: C3)
gross amount of income during the year
from all sources, and If organized under
the laws OF foreign country the gross
amount of its income derived from busi-
ness transacted and capital invested with
in the United States: (l amount received
by way of dividends upon stock of other
corporations or concerns subject to the
tax: G) total ordinary and necessary ex-
penses 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 opera
tions In conducting business transacted
within the United States. (6) total losses
actually sustained during the year and
not compensated by Insurance or other
wise, stating separately any amounts al
lowed for depreciation OF property. and
III the case Of insurance companies the
sums required by law to be carried to
premium reserve fund. and in the case of
a concern organized under the laws of q
foreign country. all losses actually sus-
tanned by it In business conducted within
the United States. not compensated by
insurance. or otherwise. stating separately
any amounts allowed for depreciation bf
property, and In the case of insurance
companies the sums required by law TO
be carried to premium reserve fund; "a
amount OF interest actually raid on bond
ed other 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 trans
acted and capital invested within the
United States bears to gross income from
all sources within and without the United
States: (S) amount paid for federal or
local taxes: GO net income after making
the deductions authorized.
Local collectors will transmit the re-
turns forthwith to- the commissioner of
To Supply or Correct Return.
Upon evidence justifying the opinion
that the return made by corporation
Is incorrect. or whenever insufficient or
no return has been made, the commits
sioner is empowered to designate any reg
ularly appointed revenue agent to ex-
anime the books or papers Of such cor
poration and take testimony of re-
sponsible officer of the corporation In or
der to produce the information required
for the purpose of assessing the tax
The commissioner is authorized also to
invoke the aid OF any United States
court to request attendance OF such OF
ficers or employees and the production OF
books and papers. Upon the information
so acquired the commissioner OF internal
revenue nnay amend any return or make
a return where none has been made.
Returns are to be retained by the COM
missioner, who will assess the tax. In
the event of any return being made with
sioner 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 20 per
cent to the tax. When the neglect is
occasioned by sickness or the absence OF
a responsible officer of the corporation
subject to the tax the collector Is allowed
to extend the time. not exceeding thirty
days Assessment made by the COM
missioner must be paid by the corpora
tions before June 30 of each year.
After assessments have been made the
returns of corporations must be MED IN
the Office of the commissioner or internal
revenue and they will then constitute pub
lie records. and as such will be opened
for inspection. For the protection OF
corporation against the wrongful use OF
Information, the following is provided:
Unlawful Disclosures.
1T shall be unlawful for any collector,
deputy collector. agent, clerk or other
officer or employe of the United States to
divulge or make known in any manner
whatever not provided by law to any
person any information obtained by him
in the discharge of his official duty, or to
divulge or make known in any manner
not provided by law any document re-
ceived. evidence taken or report made un-
der this section except upon the special
direction of the President: and any Of
fense against the foregoing provision
shall be a misdemeanor and be punished
by fine not exceeding one thousand
dollars or by Imprisonment not exceeding
one year. or both. at the discretion of the
court
If any corporation subject to the tax
refuses or neglects to make a return in
the manner required or shall make false
fraudulent return it is liable to a
penalty of not less than s1.O, and not
exceeding $4,000 When any person
authorized by law to make or to verify
a return shall make false or fraudulent
statement for the purpose of evading the
assessment he becomes liable to a fine
not exceeding $1,000 or a prison sentence
M n nna mr.