The Bingham County news. [volume] (Blackfoot, Idaho) 1918-1930, 1921-07-29
CAPITAL STOCK TAX
IS DUE THIS WEEK

July 31st is the last day for fling
returns of the capital stock tax. To
avoid penalty, the returns must be in
the hands of collectors of internal
revenue on or before midnight of
that date.
Blank forms are available at the
office OF Collector of Internal Revenue
Lewis Williams, Boise, Idaho, and at
the branch office in Pocatello, Idaho.
Form 707 is required for domestic
and 70S for foreign corporations.
The capital stock lax is a special
excise tax imposed on corporations
with respect to carrying on or doing
business The tax on domestic cor
porations is 81 for each $1,OQ or so
much of the fair average value of its
capital stock for the preceding year
ending June Goth, as is in excess of
$4,000. Foreign corporations are re-
required to pay tax at, the rate of
81 for each $1,000 of their capital
employed in the transaction of bust
ness 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 1, 1921,
and ending June 80, 1922.
The Bureau of Internal Revenue es-
Inmates that approximately $4,000
such returns will be filed, and that
the amount of revenue collected from
this source will be approximately
100000.
Returns are required of every do
mestic corporation regardless of the
! par value OF it's capital stock, and of
every foreign corporation irrespective
of the amount of capital employed in
this country in the transaction of its
business Certain corporations not
organized for profit are exempt from
capital stock. tax. The class of or
CARNATIONS entitled to the exemption
is described in Regulations so, revis-
ed copies of which may be obtained
at the following offices: Boise, Ida
no and Pocatello, Idaho.
Corporations claiming exemption
are required to file returns set ing
forth their reasons for such claims,
accompanied by evidence in support
thereof.
If, because of lack of complete data
or other reasons than illness or abb
sence, it is impossible 10 file COM
plete return on or before July 31st, 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 of failure to file re-
turn within the time prescribed is an
added assessment OF 20 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 no. more than $1,000 is pro-
vided for failure to make return
on time For wilful refusal to make
a return, wilful evasion of the tax,
refusal to supply information request
ed by the commissioner, or attempt
ing in any way to evade the tax and
payment when due, the penalty is a
fine of not more than 5000 or i'm
prisonment 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
we'll 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 les
sens liability to penalty.