The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-07-26
MUST PAY CAPITAL
STOCK TAX JULY 81.
Penalty to Be Imposed if Returns Are
Not Made by Midnight of July 81.

JACKSONVILLE, Fla, July U.s.
Especial 1.-The following statement is
issued by d. T. Gerow, collector of in
ternal revenue:
July 31st is the last day for filing
returns of the capital stock tax. To
avoid penalty the returns must be in
revenue on or before midnight of that
date.
Blank forms are available at the Of
flee of d. It. Gerow, collector of inter
nal revenue, Jacksonville, Fla. Form
707 is required fors domestic and 70S
for foreign corporations.
The capital stock tax is a special tax
imposed on corporations with respect
to carrying on or doing business" The
tax on domestic corporations is 81 for
each $1,000, or so much of the fair
average value of it's capital stock for
the preceding year ending June 30th as
is in excess of $4,000. Foreign corpor-
atoms are required to pay tax at the
rate of 81 for each $1,000 of their cap
ital employed in the transaction Of
business in the United States without
the benefit of the $4,000 deduction.
The tax is payable in advance, returns
filed in July of this year covering the
taxable year beginning July l, 1921,
and ending June 80, 1922.
The bureau of internal revenue esti-
mates that approximately $4,000 such
returns will be filed, and that the
amount of revenue collected from this
source will be approximately 100000,
900.
Returns are required of every do
mestic corporation irrespective of the
amount of capital employed in this
country in the transaction of its bus
mess. Certain corporations not or
ganized for profit are exempt from
capital stock tax. The class of organi-
cations entitled to the exemption is
described in regulations so, revised,
copies of which may be obtained at the
office of the collector of internal rev.
enue. Jacksonville, Fla.
Corporations claiming exemption are
required to file returns setting forth
their reasons for such claims, accom-
panied by evidence in support thereof.
If, because of Jack of complete date
or other reasons than illness or abb
sence, it is impossible to file a COM
plete return on or before July 81, a
tentative return may be filed, report
ing the approximate fair value in or
der that an initial assessment may be
made, thus avoiding penalty.
The penalty for failure to file a re-
turn within the time prescribed by law
is an added assessment of 25 per cent
of the amount due, unless it is shown
that the failure was due to reasonable
cause and not to neglect.
In addition to the added assessment
a fine of not more than $1,000 is pro-
vided for failure to make return on
turn, wilful evasion of the tax, wilful
refusal to supply information request
ed by the commissioner, or attempting
in any way to evade the tax and pay
ment when due, the penalty is a fine
of not more than 100000 or irnprison-
ment for not more than one year, or
both.
With a view to the prompt collec-
ton of the capital stock tax, and for
the convenience of the taxpayer as
well as the government, the bureau
suggests that corporations submit
checks with the returns for the amount
of tax due. This method is appealing
to corporations as it lessons liability
TO penalty.