Every evening, Wilmington daily commercial., 1922-06-08
CAPITAL STOCK TAX
| FORMS OUT TODAY
Returns Must be Filed With In
ternal Revenue Collector Her.
ing by July 81.

Returns on which every corporation
files a capital stock tax report Will
he mailed today Collector OF Internal
Revenue John w. Herring announced
this morning. However. our mailing
list will only include corporations
whose names are already on file In
this ONCE" ne stated, "and any new
corporation or orga anization which has
failed to file In the past is responsible
for securing the necessary form 707."
The responsibility for fling rests with
the taxpayer and ignorance OF the
law cannot secure ieniency when the
requirements have been given such
wide publicity. In order to avoid any
misunderstanding. Collector Herring
made the following explanation call
ing this tax to the attention of every
responsible officer Of corporations or
ganizcd and operating. or maintain
ing a statutory representative In Della
ware:
Every corporation must file a re-
turn or submit evidence which IL con-
elusive that II is not liable. Deter
mination OF liability rests with the
Commissioner OF Internal Revenue.
Washington. ID. c., but all statements
and returns must he sent to the col
lcctor at Wilmington. This applies to
all companies claiming exemption.
under sections OF the act. 1t will be
my duty to demand such conclusive
evidence from every corporation which
claims this exemption.
Final Date For Filing.
Every return OF capital stock must
be In the Office of the Collector of In
ternal Revenue. or have been deposit
ed In the mails on or before July 81,
| 1922. Under exceptional Circum-
stances. the collector Is empowered to
grant an extension OF this time thirty
days. In such cases however, a writ -
ten request for this extension must
be sent to the collector before the final
date for hling expires. To facilitate
the collection II this tax and for tho
taxpayers convenience. n remittance
In the amount reported may, and is
recommended 10. accompany the re-
turn All checks and orders should
he made payable to John w. Herring.
Collector of Internal Revenue.
Responsible officers of a corporatIou
who desire assistance or informatin
relative to details Of the law levytns
this tax will be welcomed at this office
IL is my desire TO render this tax
clear and intelligible to the taxpayers
In case the Ming of a return has beel,
overlooked in past years. all possible
leniency will be shown when the de-
linquents representative calls: this
Office il able 10 compromise the penal
ties whore a reasonable cause is
shown
Basis For Levy.
The tax IL imposed upon every cor
poration operating in tho United
States. based upon tho fair value -,
net worth of the concern, i'm e1.
cess OF $4,000. A consolidated balance
sheet showing actual debts and as
sets. and credits and liabilities Is re.
quired on the return. Fair value {,
reached by subtracting the real liza
b'lities from the real assets Then
, the tax is levied at the rate Of 81 or
every 81 900 worth OF value in OK
cess of $4,000. The tax has an alb
I solute basis in accounting. The form
/. of the return is known as the "ls2
1 Return" being in the nature Of
license on doing business in the com
ins year, the accounting date. how
ever. being June 30. 1922, or the near
1 est earlier date upon which balanc
sheet has been compiled. usually De
cember 81, 1921, and IL is payable In,
I mediately upon receipt OF bill fror
- the collector.