Los Angeles herald., 1910-03-02
500 CONCERNS
ARE DELINQUENT
MANY CORPORATIONS FAIL TO
FILE REPORTS
Misunderstanding as to Time of Grace
May Have Caused Some to
Delay Making of
Statements

At 6 o'clock last evening, when the
time expired for corporations in South
ern California to file reports with In
ternal Revenue Collector Parker on
which they may be taxed for the first
time under the new law, all but 900
corporations in the ten southern coun-
ties, including Los Angeles, had sub
mitted their statements of capitaliza-
ton, assets and profits. The number of
reports received yesterday was esti-
mated at about $780, or little more than
half of the number received Monday.
Collector Parker stated last night
there was a misunderstanding among
the various officials of the corporations
in regard to the ten-days' time extern
sion which he was empowered to grant.
The corporations failing to report and
said to number about 500, evidently be-
lieve this extension was granted to
any or all desiring it, whereas the ten
days grace is authorized only in cases
where-because of technical, business
complications, or other reasons certi-
fed to and considered valid-the cor
poration is unable to report within the
time designated.
Collector Parker stated, however,
that leniency would be shown; and 1t is
not probable any fines will be imposed
if those yet delinquent file their reports
within the next ten days.
While yesterday was not the busiest
day, it gave the employees of the col
lectors Office no opportunity for rest,
as it was the last day and many tan
giles were adjusted.
1.-THE reports of the oil corporations, !"
said Mr. Parker, are still held up. l
expect a decision from the commits
sioner of internal revenues within the
next two or three days, when one OF
the most knotty tangles arising from
the new law will probably be satis-
factorily solved
"The question as to the basis of taxa
tion for oil producing properties Is
only one of the many knotty problems
with which l have been confronted.
Unlike most of the collectors, / have
had no counsel available for the settle
ment OF these disputed, and must wait
for the question to be threshed out in
other cities. Undoubtedly the same is
sue has arisen in Pennsylvania, and
the decision reached there will estab-
lish a precedent for the course taken
in Los Angeles
The internal revenue collectors aids
appeared to be extremely relieved, al
closing time yesterday, that the rush
was over. There are, however, num-
ber of interesting disputes to be dis
posed of and the work of assessing the
corporations is little less than begun.
Mr.. Parker estimated that the total
revenue from the corporation tax III
the ten counties of Southern California
will total about 100000, which indicates
the immense sum to be derived by the
government from all the corporations
in the United states.
Altogether. over 5000 corporations II
the ten southern counties have sub
mitted their reports. There are 660t
| in all.
Penalties-of from $1,000 to $4,000 are
liable to be imposed on all those which
| failed to make reports by last night
| but probably but few, If any, will bt
fined, because of the apparent misun
derstanding in the matter of time ex'
| tension.