The sun., 1919-02-07

division ta), except those allowed In
paragraph t2) and in clauses (A), (R)
and CO of paragraph ca, shall be al
lowed only IL and to the extent that they
are connected with income arising from
q source within the United States: and
the proper apportionment and ALLEGATION
of the deductions with respect to sources
Of income within and without the United
states shall be determined under rules
and regulations prescribed by She Com
missioner with the approval Of the Sec
rotary
ITEMS NOT DEDUCTIBLE.
Sec. 235. That In computing net in
come no deduction shall in any case be
allowed In respect of any OF the items
specified in section 215.
CREDITS ALLOWED.
Sec. 236. That for the purpose only OF
The tax imposed by section gao there
shall be allowed the following credits:
(a) The amount received as interest
upon obligations of the United States
and bonds issued by the War Finance
Corporation. which is included in gross
income under section 233:
(b) The amount of any taxes imposed
hy title III. for the same taxable year
Provided. that in the case of n corpora
ion which makes return for fiscal year
beginning in 1917 and ending In 1918,
In computing the tax as provided in
subdivision CAY of Section EOS, the tax
nomputed for the entire period under
Title II. OF the revenue act of 1917 shall
he credited against the net income COM
puted for the entire period under Title
L. of the revenue act of 1915 as amended
by the revenue act of 1917 and under
Title 7. OF the revenue act of 1917, and
n faA fn he nyaffr tal
under Title III. Of this act at the rates
prescribed for the calendar year 1918
shall be credited against the net income
computed for the entire period under this
title: and
tc) In case of domestic corporation,
$4,000
PAYMENT OF TAX AT SOURCE.
Section 237 provides for payment OF
the tax at source.
CORPORATION RETURNS.
Section 2ss provides the conditions for
making corporation returns.
CONSOLIDATED RETURNS.
Section 24o provides the conditions
under which consolidated returns may
be made.
TINE FOR FILING RETURNS.
Section e4I provides for time and
place for filing returns.
PAYMENT OF TAXES.
Section $50 gives the terms for the
payment Of taxes.
RECEIPTS FOR TAXES.
Section 25l provides for receipts for
taxes. Section 252 for refunds. Section
ESQ for penalties, Section o54 for returns
Of payments OF dividends.
RETURNS OF BROKERS'.
Sec. 255. That every individual, cor
poration or partnership doing business
as a broker shall when required by the
Commissioner render correct return
duly verified under oath under suCO
Jules and regulations as the Commits
Sioner, with the approval OF the Secre-
tary, may prescribe. showing the names
OF customers for whom such individual.
corporation or partnership has trans
acted any business with such details as
TO the profits losses or other informa-
ton which the Commissioner may re-
quire Is to each of such customers as
will enable the Commissioner to deter
mine whether all income tax due on
profits or gains OF such customers has
been paid.
INFORMATION At SOURCE. .
Sec. 2J6. That all individuals, corpo-
rations and partnerships in whatever
capacity acting, including lessees or
mortgagors of real or personal prop
crty. fiduciaries. and employers making
payment to another Individual. corpora
ION or partnership OF interest. rent, sal
aries. wages, premiums. annuities COM
Densations. remunerations, emoluments,
or other fixed or determnable gains
profits and incomes (other than pay
ments described in sections e54 and
a5J), of $1,000 or more in any taxable
year, or, in the case OF such payments
made by the United States. the officers
or employees OF the United States hav-
ng information as to such payments
aud required TO make returns in regard
thereto by the regulations hereina fter
provided for. shall render true and
accurate return to the Commissioner,
under such regulations and in such form
and manner and to such extent az may
10 prescribed by him with the approval
81 tho Secretary, setting forth the
amount 81 such gains. profits and in
come, and the name and address of the
recipient OF such payment.
RETURNS TO BE PUBLIC REC
ORDS.
Section 257 provides that returns shall
constitute public records section 25S
20" the publication Of statistics. section
go for the collection of foreign items,
section ESQ defines the bill as regards to
''i2cns or the United States possessions
-e"t'on 2sl defines the law as respects
Porto Rico and the Philippine Islands.
Excess Profits Tax.
FART I.-GENERAL DErINI-
TONS.
PART I.-GENERAL DEFINITIONS,
Soc. 900. That when used in this title
N" terms taxable year" fiscal year"
personal service corporation" paid or