Return Required if Aggregate Income of Husband and Wife is in Excess of $4,000, Although Neither May Have an Income of $3,000 or Over. If the aggregate net income of both exceeds $4,000, an annual return of their combined incomes must be made in the manner stated, although neither one separately may have an income of $3,000 per annum. They are jointly and separately liable for such return and for the payment of the tax. When Status is to be Determined. The single or married status of the person claiming the specific exemption shall be determined as of the time of claiming such exemption if such claim be made within the year for which return is made, otherwise the status at the close of the year. Interest in Partnership Profit; How Reported. ART. 11. His or her pro rata share of the net profits derived from a partnership business, whether or not divided and paid out, shall be included in the personal return of each partner. Partnerships, as Such, Not Liable to Tax, but Statement May be Required. ART. 12. Partnerships, as such, are not subject to the income tax, and are only required to make return when requested to do so by the Commissioner of Internal Revenue or the collector of internal revenue for the district in which said partnership has its principal place of business; and when a return is required it shall give a complete and correct statement of the gross income of the said partnership and also a complete statement of the actual expenses of conducting the business of said partnership, and the net profits and the name and address of each member of said partnership, and their respective interest in the net profit thus reported. Partnership Profits to be Included in Returns Made by Individual Partners. ART. 13. The net annual profits of a partnership when divided and paid to the members thereof shall be included by each individual partner receiving same in his annual return of net income, and the tax shall be paid thereon as required by law. When the annual profits of a partnership are not distributed and paid to the members thereof the respective interest of each member in said profits shall be ascertained, and the individuals entitled thereto shall include the said amount in their annual return as a part of their gross income, the same as if said profits had been distributed and paid to them. Individual Partnership Profits. ART. 14. Undivided annual net profits of partnerships thus returned by the individual members thereof, and tax paid thereon, shall not, when said profits are actually distributed and paid to such members, be again included in their annual return as a part of their gross income. Partnerships, as Such, May File Certificate Claiming Deduction. Partnerships owning interest coupons or registered interest orders may claim deduction for legitimate expenses incurred in business by filing the proper certificate with the withholding agent. (See T. D. 1957.) RETURNS. When Returns of Annual Net Income of $3,000 or Over Are to be Made. ART. 15. Each person of lawful age whose net income is $3,000 or over shall, on or before the 1st day of March, 1914, and on or before the 1st day of March each year thereafter, file an accurate return of income under oath or affirmation, except as herein provided. (See Article 8.) Where Filed. If the person making the return of income has his place of business in the collection district in which he resides, the return shall be filed with the collector of that district. If his principal place of business is elsewhere, the return shall be filed in the district in which that business is located. In the case of an individual residing in a foreign country return shall be made to the collector of internal revenue for the district where his principal business is carried on within the United States. Form of Return. ART. 16. The required return will be made on Form 1040 in accordance with the instructions printed thereon, and will specifically set forth 1. All income received from each specific source and the total thereof. 2. All the separate items of deduction claimed under paragraph B of this law. 3. The amount of specific exemption claimed under paragraph C. 4. All amounts of income upon which tax has been withheld at source by withholding agent or agents. When Return Will be Made by Guardian or Duly ART. 17. When by reason of minority, insanity, absence, sickness, or other disability, the individual is unable to make his own return, the same shall be made by his guardian or duly authorized agent. Executor or Administrator to Make Return in Case of Death. In the case of the death of a person whose net income for the part of the year during which he lived was $3,000 or over, return of net income shall be made by the executor or administrator of the estate of the deceased, and in computing the taxable income of such estate there shall be allowed the specific exemption provided by law. Notice of Failure to File Return to be Served on ART. 18. When the required return has not been made by a person acting as guardian, agent of a nonresident alien, or by one acting in any other capacity in which the law makes it a duty for him to represent the individual, notice of failure to make such return will be served upon such guardian or agent. Evidence May be Filed Showing Nonliability to Make Return. The person upon whom such notice is served may, however, when the facts warrant, file evidence with the collector showing that the individual for whom he acts did not receive an income subject to tax during the year, or that the said guardian or agent had filed the return with some other collector. Returns Not Required of Persons for Whom Full Returns Have Been Made by Others. ART. 19. Any individual whose net income is less than $20,000, for whom full return has been made by others as withholding agents, shall not be required to make a return. Returns to be Prepared by Collector in Certain Cases. ART. 20. If any person liable to pay an income tax for himself or others shall fail to make and deliver the return required by law, but shall consent to disclose the particulars of any business or occupation liable to pay such tax, it shall be the duty of the collector or deputy collector to make such list or return, which being distinctly read and consented to, signed, and verified by oath or affirmation by the person liable to make such return, the same may be received as the list or return of such person. Refusal or Neglect to Make Return. ART. 21. In case any person liable to make return shall neglect or refuse to make or render a list or return, or shall render a willfully false or fraudulent return, it shall be the duty of the collector, after due notice has been given, to make such list, according to the best information he can obtain by the examination of such person, or any other evidence.1 Penalty for Failure to Make Return or for Making False Return. When duly certified by the collector, the said list thus prepared shall be the return of said person, and the tax so ascertained to be due, together with the 50 per cent or 100 per cent penalty incurred, shall be assessed and collected. Returns to be Verified by Oath or Affirmation. ART. 22. The annual return must be verified by oath or affirmation of the person making the same. Collectors are directed by law to require every return to be so verified by the person rendering it. The affidavit may be made before the collector for the district or before any officer authorized by law to administer oaths. Extension of Time to File Return May be Granted. ART. 23. When the return is not filed within the required time by reason of sickness or absence of the individual, an extension of time, not exceeding 30 days from March 1, within which to file such return may be granted by the collector, provided a written application therefor is made by the individual within the period for which such extension is desired. Returns to be Forwarded to Commissioner of Internal Revenue by Registered Mail. ART. 24. The annual returns will be forwarded by collectors by registered mail to the Commissioner of Internal Revenue with the list for the month in which the returns are filed. Collectors must provide that said returns and all For method of procedure in such cases, see secs. 3173 and 3176, Rev. Stat., and also Form 1045, the form of notice to be given in such cases. |