The Bridgeport evening farmer., 1909-12-15
YOU'LL PAY LESS FOR IT AT kLrNEs
 

fes. and associations subject to this tax) derived from all other sources as shown by the entries on its books from January to December 31 of the year for which return Is made.
 Relating to statutory deductions the regulation is to the effect that the deductions authorized shall include all expense items under the various heads acknowledged as liabilities by the cor poratton. making the return and en- tered as such on its books from Jan uary to December 31 of the year for which return Is made It will appear. therefore, that the return is to be made up from the ledger and not the cash book. and that entry on the led ger from January 1 to December 31 of the year for which return is made is the evidence which will determine whether or not an item is to be taken account of in making the return.
 It is believed by Secretary Macveagh that this interpretation furnishes a practical working method by which the amount of income subject to the tax can be fairly and justly determined in every case.
 or course in administering a law applying to so many taxpayers Qists prepared by collectors show something over 100000 corporations which will have to make returns) some of the re- turns will be inaccurate The causes of inaccuracy will be two: First, hon. est error; second. willful intent to de- fraud the government of revenue. If an honest error is made in calculating the return for one year 1t will be cor rected if possible. and even if not cor rected Tn one year it would more than probably correct itself later. Where fraudulent purpose is discovered wig orous prosecution will follow. This bureau feels that in dealing with the incorporated business of the country it is dealing. in the main with honest men, However. the regulations ar. drawn sufficiently rigid to restrain anyone who does not measure up to this standard.
 The regulations do not call for spe cifiic methods of keeping accounts or any particular method of Bookkeeping the requirement. is simply that the ate returns can be made therefrom and verified when necessary.
 In many corporations. mercantile and manufacturing particularly, an in 'ventory. or it's equivalent. is essential at the close of each calendar year. The law specifically states that the tax shall be collected for the calendar year and no return for any other period can be accepted Provision Is however made for preparing returns for the equivalent was taken at close of last calendar year. Provision is made for a method of fairly determining amount of loss and depreciation claimed: also
 
 in case of sale of capital assets &C., quired prior to January l. 1909; also for properly accounting for materials and supplies. etc
 Great numbers of communications have been received relative to the pub licfty clause. While there Is appar- ently some inconsistency between the two paragraphs of the law relating to making public the information re- ceived. the language Of the law relat- ing to filing returns for record and public inspection is so clear that the Bureau of Internal Revenue has no discretion whatever in the matter. The forms and regulations will go to the collector of each district. who will send copies of the blanks and a copy of the regulations to every corporation whose name and address the collector has been able to secure Failure to receive the blanks or any notice rela- tive thereto will not excuse a corpora tion from making the return required by law. nor will it relieve it from pen alties for failure so to do. If copies of blanks and regulations are not re- ceived on or about January l. applica- tion should be made to the collector in whose district the principal office of the corporation is located so that the return can be in the hands of the collector by the time required in the statute