The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1911-02-24
All Schedules Of Corporations in
Southeastern Iowa Must Be Filed
in Burlington Office by
March list.
II Gives Special Information Which
Officers Of Corporations Should
Know-What it Says
In Part.

Inc corporations OF keokuk and
the southern district of Iowa have but
few more days In which to file their
schedules at the Burlington internal
revenue office for the corporation tax,
All schedules must be in the office by
March ]. So far but small percen-
tage have been received. 1t is stated
positively that the penalties will be
added to the tax for failure to file
within the specified time.
| A special bulletin has been issued
by the department which gives special
| information which the officers of cor.
porations should know, the most i'm
portant of which are:
| The tax imposed by the act applies
to al! corporations, ETC., described, ex-
cept those specifically exempted,
without reference to the kind of bust.
ness carried on.
| Every corporation, ETC., not speci-
fically enumerated as exempt shall
make the return required by law, al
though its net income during the
year may not have exceeded $4,000.
Corporations, etc, organized during
the year, or going into liquidation dur
Ing the year, should nevertheless
render a sworn return on the pre-
scribed form. The tax imposed, how
ever. is held not to apply to corpora
tions which went out of existence
prior to the passage Of the act
Where corporation has gone into
bankruptcy, returns in such cases to
be made by trustee in bankruptcy
Principal place OF business is
held to mean the principal office
where the company Keeps it's books
from which the required return is to
be prepared and not the place where
the operating plant is located.
!. AS the law specifically provides that
the tax imposed shall be computed on
the net income during each calendar
year, returns OF income based on any
/ period other than the calendar year
cannot be accepted.
IT. is immaterial whether the deduc.
tons are evidenced by actual disburse-
ments in cash or whether evidenced
in such other way as to be properly
Acknowledged by the corporate Off
GERS and SO entered on the books as
to constitute liability against the
assets of the corporation, etc, max
| ing the return.
Where allowance on account of sala
ries are deemed excessive and for the
purpose of eyadng the tax due. in
vestigation will be made, and ii the
facts warrant, prosecution will follow.
National banks do not come within
act
Agricultural organizations held
not to come within the statutory ex-
emption, unless their chief object is
the promotion or advancement of ag-
ricultural interests, and no part of the
net income inures to the benefit of
their stockholders.
Exemption in favor Of fraternal ben
eficiary associations does not apply to
mutual fire insurance companies.
Limited partnership, if organized
for profit and having a capital stock
represented by shares, although no
certificates of stock" are issued, are
liable to the tax imposed. (Opin, Atty
Gen, Feb. IA, 1900
Banks paying taxes assessed against
their stockholders because of their
ownership of the shares of stock Is
sued by such bank cannot, deduct the
amount of tax so paid in making their
return for the special excise tax on
corporations.
Amounts paid for pensions to re-
tired employees or to their families or
others dependent upon them. or on
account Of injuries received by en-
| ployes, are proper deductions as COR
binary and necessary expenses" gifts
or gratuities to employees In the ser
! vice Of corporation are not properly
deductible In ascertaining net In
come.