New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1921-07-22
OF INTERNAL
REVENUE SAYS RETURNS
MUST BE IN BY AUGUST

July 81 is the last day for filing
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 he
office OF Collector of Internal Rev.
enue Albuquerque, New Mexico. Form
107 is required Tor domestic, and 708
Tor foreign corporations.
The capital stock tax is a special
excise tax imposed on corporations
with respect to carrying on or do
ing business" The tax on domestic
corporations is 81 for each $1,000 or
SO much Of the fair average value
OF its capital stock for the preceding
year ending June 50 as is in excess
II $1,000. Foreign corporations are
required to pay tax at the rate OF
81 for each 81 900 OF their capital
employed in the transaction OF busi-
ness in the United States without
the benefit OF the 5000 deduction.
The tax is payable in advance. re-
turns filed in July OF this year COW
ering the taxable year beginning
July /, 1921 and ending June 80,
1922.
The Bureau OF Internal Revenue
estimates that Approximately 325,00O,
such returns will be filed, and that
the amount OF revenue collected
from this source will be approXlm-
atcly S90OO0,0O0
Returns are required OF every DOM
estic corporation regardless OF the
par value Of its capital stock, and
Of every foreign corporation irres-
pective of the amount OF capital en-
ployed in this country in the trans
action OF its business. Certain COR
porations not organized for profit are
exempt from capital stock tax The
class of organizations entitled to the
exemption is described in regulations
So revised, copies of which may be
obtained at the office of the Collect
or OF Internal Revenue, Albuquerque,
New Mexico.
Corporations claiming exemption are
required to file returns setting forth
their reasons for such claims ac-
companied by evidence in support
thutoi Ii. because OF lack OF c5m-
rlc'c data or other reasons thaE IT.
rc,s or absence, /. is impossible TO
+ f'r a ,cItp'cte return on %. before
luh b. "a tentative return may lie
. filed, reporting the approximate far
value in order that an initial as
sessment may be made, thus avoid
/ ing enalty. -
The penalty for failure to file a
return within the time prescribed is
an added assessment of 25 per cent
OF the amount due, unless it is shown
that the failure was due to reasons
able cause and not to neglect.
In addition to the added assess
lmcnt a fine of not more than 81 900
is provided for failure to make a re-
tax, wifu refusal to supply inform
turn on time. For wilful refusal to
make a return, wiliul evasion of the
alton requested by the Commissioner,
or attempting in any way to evade
the tax and payment when due, the
penalty is a fine of not more than
$4,000 or imprisonment for not more
than one year, or both.
With a view to the prompt coli
lection OF the capital stock tax, and
for the convenience OF the taxpayer
as well as the government, the Bu-
reau suggest that corporations SUBJ
NIT checks with the returns for the
amount OF tax due This method is
appealing TO corporations as It les
sens liability to penalty.