Evening journal., 1914-07-02
RULES FOR Return
OF ANNUAL incomes
Corporations Must Give No
tice to Collector 80 Days
Before March 80
FAILURE TO DO SO WILL
MAKE FIRMS LIABLE

WASHINGTON. d. c., July RULES
governing the methods by which cor
porauons must make returns of their
annual net income on the basis of
fiscal year have been made public at
the Treasury Department All cor
porations are cautioned to read the
regulations carefully and to guide
themselves accordingly.
The statement made at the Treas
ury Department says that "corpor-
ations desiring TO make returns of
annual net income on the basis of a
fiscal year must give notice in writ
ing TO the collector not less than
thirty days prior to March 1, desig-
mating in such notice the last day of
some month as the close of the fiscal
year. Failure to give such notice
at least thirty days prior to March
/. or to make return for the preced-
Ing calendar year on or before March
/ renders corporations liable to addi-
tional tax and penalty.
Notice TO Collectors.
your attention is called to the fol-
lowing provision quoted from Para
graph c, Subsection G, of Section 2.
act Of October Q. 1913: The tax here
in imposed shall be computed upon
its entire net income accrued within
each preceding calendar year ending
December thirty-hrst; pro-
,ided further. that any corporation,
etc, subject to this tax may designate
the last day of any month in the
ear as the day of the closing of its
fiscal year, and shall be entitled to
! have the tax payable by it computed
upon the basis of the ne income
ascertained as herein provided for
tie year ending on the day so desig-
mated and it shall give no
tive of the day it has thus designated
as the closing of the fiscal year to
the collector of the district in which
its principal business Office is To-
Gated at any time not less than thirty
days prior to the date upon which
ITS annual return shall be fled
Making of Returns.
Except as provided in the act, all
corporations are required to make their
returns of annual net income on the
basis of the calendar year and to file
such returns on or before the first day
of March next following. March /, is,
therefore, the primary due date for the
return OF all corporations. This due
date can be postponed only in accord
ance with some legal or authorized ac-
tion. Unless such action is taken
within the prescribed time, or the re-
turns filed on or before March l. all
corporations in existence at the preced-
ing December 81 and failing to take
such action, or 80 file their returns for
the period ended December 81, will be
/ held 10 be delinquent and will be sub
iect to 80 per cent. additional tax and
the penalty of the law.
"The filing OF returns at any date
other than on or before March ! and
on a basis other than the calendar year,
can be authorized only in cases wherein
corporations. not less than thirty days
prior to March J. give notice in writing
to the collector of the district in which
are located their principal places OF
business, designating in such notice the
last day of some month as the close
of their fiscal year. In this case the
corporations will make their returns for
the year so established, and will file
their returns on or before the last day
of the 60-day period next following the
date designated as the close of the iis-
cal year
The Fiscal Year.
For the purpose of the income tax
law a fiscal year, when designated
must be so designated that the re-
turn made on this basis viii not com
prehend period greater than twelve
consecutive months. If the required
notice is delayed until it cannot bt
given at least thirty days prior to
March 1, or If the date designated as
the close OF the fiscal year compre'
hends a period greater than twelve
months from the close of the period
for which the last period return was
made. the returns must be made a'
OF the calendar year, and must be
filed on or before March 1, until sucf
time as a fiscal year for this purpose
can be legally established.
"If a corporation. which shall have
filed, on or before March /, its return
for the preceding period ended De
cember 81, desires to establish, as
basis for making future returns,
fiscal year ended at some date prioi
to the next December 81, it may d'
so BY filing, at least thirty days priol
10 lut uhlc WHEN It's ANeNtH'f W
fiscal year basis. will be due, a no
tice with the collector designating
the last day of some month as th'
close OF its fiscal year. IL will then
on or before the last day of the sixty
day period next following the date 81
: designated, file a return covering th'
period from January ! to the date 81
designated in the same year. an'
thereafter It's returns will be mad
for each twelve months period mex
following such date.
"The above rulings viii apply &
, corporations which began busines
within the year, as we'll as to thosl
which we're In existence and trans
acted throughout the year.
ANY ruling or treasury decision
/ heretofore issued and in conflict will
. this decision Is hereby recalled AM