The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1921-07-22
CAPITAL TAX RETURN
July 81 Is the Last Day,
Says Collector
PENALTY IS ATTACHED
information Coming Out of the
Internal Revenue Agents
Department

July 81 is the last day for filing re.
turns Of the capital stock tax. To
avoid penalty, the returns must be in
the hands of the collectors of internal
revenue on or before midnight oil
that date.
Blank forms are available at the
office of collector internal revenue
st: Paul, and the following branch
offices: Minneapolis, Duluth, St
Cloud, Winona, and Mankato. Form
aO7 is required for domestic, and 70s
Tor foreign corporations.
The capital stock tax is a special
excise tax imposed on corporations
with. respect to carrying on and do
ing business" The tax on domestic
corporations is 81 for each $1,000 OF
so much of the fair average value OF
its capital stock for the preceding
year ending June 80 as is in excess
of $4,000. Foreign corporations are
required to pay tax at the rate OF
81 for each $1,000 OF their capital en-
ployed in the transaction of bljiness
IN the United States without the
tax is payable in advance, returns
filed in July of this year covering the
taxable year beginning July !, 1921
and ending June 80, 1922.
The bureau of international review
estimates that approximately $4,000,
such returns will be filed, and that
the amount Of the revenue collected
from this source will be approximate
ly $90,000,0O0.
Returns Are Required
returns are required OF every do
nestle corporation regardless of the
per value Of its capital stock, and of
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of the amount of capital employed in
the transaction of its business. Ger
tain corporations not organized for
profit are exempt from capital stock
tax. The class of organizations en-
titled to the exemption is described in
regulations so, revised. copies of
which may be obtained at the office
of the Collector of Internal Revenue,
st. Paul, Minnesota.
Corporations claiming exemption
are required to file returns setting
by evidence in support
thereof.
If, because of lack of complete data
or other reasons than illness or alb
sence, it is impossible to file 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.
- r--.-, Penalty For Failures
The penalty for failure to file re-
turn within the time prescribed is an
added assessment of Is per cent of
the amount due, unless it is shown
that the failure was due to reason
able cause and not neglect.
In addition to the added assessment
! fine of not more than $1,000 is pro-
Vided for failure to make return on
time. For Wilful refusal to make a
return, willful evasion of the tax,
wilful refusal to supply information
by the Commissioner, or
attempting in any way to evade the
AK and payment when due, the pen
Atty is fine Of not more than $4,000
)r Imprisonment for not more than
)ne year, or both.
With a view of the prompt collec-
ion Of the capital stock tax, and for
he convenience of the taxpayer as
we'll as the government, the Bureau
suggests that corporations submit
checks with the returns for the
amount of tax due. This method is
to corporations as it les
sens liability to penalty.