Arizona republican., 1911-05-04
CORPORATIONS MUST
DECLARE INCOME
TREASURY DECISION CONCERN
ING SPECIAL EXCISE TAX.
Heavy Penalty for Corporations Evad
ing Regulation.

Frank Il. Crandall deputy collector
OF internal revenue for Arizona. ie-
ceiNed copy o. recent United State;
treasury decisions last week respect
ing tine revenue service. and the SPEC
lal excise tax on corporations The
government requires every corpora
ton in operation in state or terri
tory 10 file a return each year before
the first of March of annual net in
come. and Il penalty ranging from
$1,000 to $1,000 has been provided
for any corporation eVading or fail
ing to comply with this regulation.
Because Of the interest which at
taches To such publication. and on
account Of the ignorance of the gov
eminent law touching corporations
manifested by many mine owners OF
the territory. Mr.. Crandall Ives the
article touching the excise tax on
corporations 10 The Republican Tor
publication. and the decision %: she
treasUi - { experiment. on this head fol-
los:
In pursuance Of the provisions of
section - of the act of August :.
1909. providing penalty Of from
.l.op0 L. 10000 for failure 60. cJrpn-
ra;ions l. filc their returns of annual,
net inc,l ae on or before March ! OF
each year. go are inforiar.I Is fol
EpWs.
Paragraph of section IS IF ihc
ac- # NusvSi ,. 1909. On ,-,deS that
on or before the first day Of
March. nineteen hundred and ten. and
the first day of March i'm each year
I d
turn. under oath or affirmation. of its
president, vice president. or other
principal officer. and its treasurer or
assistant treasurer shall be made by
each of the corporations, joint stock
companies or associations. and IN
surance companies, subject to the tax
imposed 10y this section, to the Colicc-
tor of internal revenue for the dis
trict in which such corporation
has its principal place OF bust
ness.
Paragraph > of the same section
provides that in case If neglrC- 1cca-
stoned BY the sickness o- absence oi
an officer of such corporation, etc.
required To make return. or for other
sufficient reason. the co'i",J)- may
allow such further time for rsakns
ard delivering such return as h. may
deem necessary, not exceeding 80
days
Paragraph S provides that,
II any Of the corporations. joint
stock companies or associations. or
4 insurance companies aforesaid shall
refuse or neglect To- make return
at the time OF times hereinbefore
| specified in each year. or shall render
/ a false or fraudulent return. such cor
poration. joint stock company or as
ISOLATION. OF insurance company shall
be liable 10 a penalty of not less than
one thousand dollars and not exceed
/ ing ten thousand dollars.
| In view Of these provisions of the
| law. the following instructions are
| issued for the guidance of collectors:
The failure to file a return of an
nual net income within the period
! prescribed by law 10y. any corporation.
| etc. subject To- the special excise tax
on corpora tons is a violation of the
| express requirement OF the statute
! for which penalty is provided.
/ Therefore. in accordance with the pro-
visions of section 1864 Revised stat
utes. each corporation, joint stock
| company. etc. subject to the tax.
which failed To- file return of an
nuaI net income on or before the first
day Of March and also failed To- secure
an extension of time not in excess of
go DAYS from the first day of March
to cover the period within which the
return was filed. should. without re-
course to this office, be reported to
the district attorney, with state
ment of the facts. etc. in the case.
When such report has been made
/ to the district attorney. it will be
proper for the collector To- inform
| each delinquent corporation of their
privilege TO submit an offer in com
promise as provided in section 800.
Revised Statutes.
In this connection, attention IS
called to Regulations No. II, pages
80 and "a, relative TO compromises.
Particular attention is called TO the
| fact that no solicitation Of an offer