The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1911-12-25
WOULD HELP
The SMALLER
CORPORATION
Hanna Working For Benefit Of
Of Small Concerns
Would Have the Corporation
Tax Law Amended
GrOnna Also Working to Get
Change IN the Law

Washington, Dec. 25s-Rep. La b.
Hanna is very hopeful that congress
win at this session pass bin recent
ly introduced by him defining the words
refuse" and -neglect- I'm the corpora
tion tax law as applied 20 corporations
whose net earnings amount TO less than
$4,000. Some Of the very ANAL cor
porations. whose business probably
does not amount TO anything like $4,000
net per annun, have been slow about
making returns to the commissions OF
internal revenue. The law requires
that they file their affidavfts within
specified time in order 10 avoid The
payment OF the corporation tax For
failure to make returns these corpOra-
lions can be fined $1,000. which would
would put most OF them out or bazgi-
ness.
The purpose Of Mr.. Hanna Tn to have
the law draw distinction between oor-
porations which inadvertently fail To
make returns at the proper tirne and
those whose officers deliberately refuse
or knowingly neglect TO do 30. The
fact that a corporation does a small
volume La no excuse for failura TO make
proper returns accommodated BY ar
idavifs- Where the offense 81 unin-
territorial, however, the North Dakota
representative feels that the commits
sioner OF internal revenue ahouid have
the power to exercise his discretion and
not be bound by a rigid legal rule which
compels him to fix a severe penalty.
amounting to many times the tax ex-
acted of much more pretentious con-
Germs.
On general principles. Mr.. Hanna
thinks the law should be more flexible
on this point. His bin Is designed to
benefit small creameries. cooperative
stores and other similar corporations
scattered throughout the northW est and
the country generally.
Senator Gronna Is taking keen In
terest in the movement TO have the cor
poration tax law so amended as to per-
NIT all corporations to make returns for
their own current fiscal years, instead
OF requiring them, as at present, to
make returns for the preceding year on
Jan. /.
There Is great need for such an
amendment" said Senator Gronna to
The Forum correspondent. Many cor
porations which are paying the tax
are complaining that It is very moon
venient for them to make returns on
Jan. when the years business closes
months before. I am convinced that It
would entail little hardship upon the
Office of the commissioner OF internal
revenue IL corporations were permitted
to file returns for their own business
year instead Of the calendar year.
Commissioners Cabeli has practicable
agreed to recommend that this changa
be made In the law. have had several
talks with him on the subject For ex-
ample, the -four nniIIers close their
fiscal year about Aug. i. The grain
companies close their books month
earlier. Northern lumber mills close
down for the year at one time. while
those who operate In the south run all
winter. Practically all OF the great tn
dustries close their years books &C ffs
time most convenient TO thszn and.
without regard to any other industry.
"Of course. It would mean lot more
work for the Office force and agents OF
Commissioner CabalI II the desired
change were made. II likewise would
mean great deal 10 corporations I'm
general and do much 10 populaxiss the
law.