Taxable Years Beginning in 1943 Taxable Years Beginning in 1942 Taxable Years Beginning in 1941 SUBTITLE A-TAXES SUB-SUBTITLE A-TAXES SUB-SUBTITLE A-TAXES SUBJECT TO THE JURISDIC Sec. 2. Cross references. The cross references in this chapter to other portions of the chapter, where the word "see" is used, are made only for convenience, and shall be given no legal effect. Sec. 3. Classification of provisions. The provisions of this chapter are herein classified and designated asSubchapter A-Introductory provisions, Subchapter B-General provisions, divided into Parts and sections, JECT TO THE JURISDICTION OF THE BOARD OF TAX APPEALS CHAPTER 1-INCOME TAX• SUBCHAPTER A-INTRODUCTORY PROVISIONS Sec. 1. Application of chapter. The provisions of this chapter shall apply only to taxable years beginning after December 31, 1938. Income, war-profits, and excessprofits taxes for taxable years beginning prior to January 1, 1939, shall not be affected by the provisions of this chapter, but shall remain subject to the applicable provisions of the Revenue Act of 1938 and prior revenue acts, except as such provisions are modified by legislation enacted subsequent to the Revenue Act of 1938. Sec. 2. Cross references. JECT TO THE JURISDICTION OF THE BOARD OF TAX APPEALS CHAPTER 1-INCOME TAX SUBCHAPTER A-INTRODUCTORY PROVISIONS Sec. 1. Application of chapter. The provisions of this chapter shall apply only to taxable years beginning after December 31, 1938. Income, war-profits, and excessprofits taxes for taxable years beginning prior to January 1, 1939, shall not be affected by the provisions of this chapter, but shall remain subject to the applicable provisions of the Revenue Act of 1938 and prior revenue acts, except as such provisions are modified by legislation enacted subsequent to the Revenue Act of 1938. Sec. 2. Cross references. The cross references in this chap The cross references in this chapter to other portions of the chapter to other portions of the chapter, where the word "see" is used, are made only for convenience, and shall be given no legal effect. Sec. 3. Classification of provisions. The provisions of this chapter are herein classified and designated asSubchapter A-Introductory provisions, Subchapter B-General provisions, divided into Parts and sections, ter, where the word "see" is used, are made only for convenience, and shall be given no legal effect. Sec. 3. Classification of provisions. The provisions of this chapter are herein classified and designated asSubchapter A-Introductory provisions, Subchapter B-General provisions, divided into Parts and sections, Subchapter C-Supplemental Subchapter C-Supplemental Subchapter C-Supplemental provisions, divided into Supplements and sections. Subchapter D-Victory tax on individuals, divided into parts and sections. Sec. 3, I. R. C., supra, amended by Sec. 172 (b), R. A. of 1942, by adding Subchapter D. Sec. 172 (g) of said Act makes amendment effective on Jan. 1, 1943. Sec. 4. Special classes of taxpayers. provisions, divided into Supplements and sections. Sec. 4. Special classes of taxpayers. The application of the General The application of the General Provisions and of Supplements A Provisions and of Supplements A to D, inclusive, to each of the fol- to D, inclusive, to each of the following special classes of taxpayers, lowing special classes of taxpayers, shall be subject to the exceptions shall be subject to the exceptions and additional provisions found in and additional provisions found in the Supplement applicable to such the Supplement applicable to such class, as follows: class, as follows: provisions, divided into Supplements and sections. Sec. 4. Special classes of taxpayers. The application of the General Provisions and of Supplements A to D, inclusive, to each of the following special classes of taxpayers, shall be subject to the exceptions and additional provisions found in the Supplement applicable to such class, as follows: (a) Estates and trusts and the (a) Estates and trusts and the (a) Estates and trusts and the beneficiaries thereof,-Supplement beneficiaries thereof,-Supplement beneficiaries thereof,-Supplement Taxable Years Beginning in 1940 Taxable Years Taxable Years Beginning before 1939 SUBTITLE A-TAXES SUB-SUBTITLE A-TAXES SUB-SUBTITLE A-TAXES SUBJECT TO THE JURISDIC TION OF THE BOARD OF TAX APPEALS CHAPTER 1-INCOME TAX SUBCHAPTER A-INTRODUCTORY PROVISIONS JECT TO THE JURISDIC- Sec. 1. Application of chapter. The provisions of this chapter shall apply only to taxable years beginning after December 31, 1938. Income, war-profits, and excessprofits taxes for taxable years be Sec. 1. Application of chapter. The provisions of this chapter shall apply only to taxable years beginning after December 31, 1938. Income, war-profits, and excessprofits taxes for taxable years beginning prior to January 1, 1939, ginning prior to January 1, 1939, shall not be affected by the provisions of this chapter, but shall remain subject to the applicable provisions of the Revenue Act of 1938 and prior revenue acts, except as such provisions are modified by legislation enacted subsequent to the Revenue Act of 1938. Sec. 2. Cross references. shall not be affected by the provi- Sec. 2. Cross references. The cross references in this chap- The cross references in this chapter to other portions of the chapter to other portions of the chapter, where the word "see" is used, ter, where the word "see" is used, are made only for convenience, and are made only for convenience, and shall be given no legal effect. shall be given no legal effect. Sec. 3. Classification of provisions. The provisions of this chapter are herein classified and designated as— Subchapter A-Introductory provisions, Subchapter B-General provisions, divided into Parts and sections, Sec. 3. Classification of provisions. The provisions of this chapter are herein classified and designated asSubchapter A-Introductory provisions, Subchapter B-General provisions, divided into Parts and sections, Subchapter C-Supplemental Subchapter C-Supplemental provisions, divided into Supple- provisions, divided into Supplements and sections. ments and sections. Sec. 4. Special classes of taxpayers. Sec. 4. Special classes of taxpayers. Sec. 4. Special classes of taxpayers. The application of the General The application of the General Provisions and of Supplements A Provisions and of Supplements A to D, inclusive, to each of the fol- to D, inclusive, to each of the following special classes of taxpayers, lowing special classes of taxpayers, shall be subject to the exceptions shall be subject to the exceptions and additional provisions found in and additional provisions found in the Supplement applicable to such the Supplement applicable to such class, as follows: class, as follows: (a) Estates and trusts and the (a) Estates and trusts and the beneficiaries thereof,-Supplement beneficiaries thereof,-Supplement E. (b) Members of partnerships,Supplement F. E. (b) Members of partnerships,Supplement F. See p. 2, Eighth Edition. (c) Insurance companies,-Supplement G. (d) Nonresident alien individuals, Supplement H. (e) Foreign corporations,-Supplement I. (f) Individual citizens of any possession of the United States who are not otherwise citizens of the United States and who are not resi Taxable Years (c) Insurance companies,-Supplement G. (d) Nonresident alien individuals,-Supplement H. (e) Foreign corporations,-Supplement I. (f) Individual citizens of any possession of the United States who are not otherwise citizens of the United States and who are not residents of the United States,-Sup-dents of the United States,-Sup-dents of the United States, Supplement J. plement J. (f) Individual citizens of any possession of the United States who are not otherwise citizens of the United States and who are not resiplement J. (g) Individual citizens of the (g) Individual citizens of the (g) Individual citizens of the United States or domestic corpora- United States or domestic corpora- United States or domestic corporations, satisfying the conditions of tions, satisfying the conditions of tions, satisfying the conditions of section 251 by reason of deriving a section 251 by reason of deriving a section 251 by reason of deriving a large portion of their gross income large portion of their gross income large portion of their gross income from sources within a possession of from sources within a possession of from sources within a possession of the United States,--Supplement J. the United States,-Supplement J. the United States,-Supplement J. (h) China Trade Act corpora- (h) China Trade Act corpora- (h) China Trade Act corpora tions, Supplement K. (i) Foreign personal holding companies and their shareholders, -Supplement P. (j) Regulated investment companies, Supplement Q. tions, Supplement K. (j) Mutual Regulated investment companies,-Supplement Q. (k) Shareholders of Personal (k) Shareholders of Personal investment compa (k) Shareholders of Personal Service Corporations,-Supplement Service Corporations,-Supplement Service Corporations,-Supplement S. S. S. (1) Individuals with gross income (1) Individuals with gross income (1) Individuals with gross income from certain sources of $3,000 or from certain sources of $3,000 or from certain sources of $3,000 or less, Supplement T. Supplement T. Sec. 4, I. R. C., supra, amended by Sec. 102 (c), R. A. of 1941, by adding paragraphs (k) and (1). Sec. 118 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940. Sec. 4, (j), I. R. C., supra, amended by Sec. 170 (b) (1), R. A. of 1942, to read as above. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. For Sec. 4 (j), I. R. C., before amendment, see 1942 col umn. SUBCHAPTER B-GENERAL PROVISIONS PART I-RATES OF TAX Sec. 11. Normal tax on individuals. less, Sec. 4, I. R. C., supra, amended by Sec. 102 (c), R. A. of 1941, by adding paragraphs (k) and (1). Sec. 118 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940. Sec. 4, (j), I. R. C., supra, amended by Sec. 170 (b) (1), R. A. of 1942, by striking out "Mutual" and inserting in lieu thereof "Regulated," and also by inserting "Q." Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941. SUBCHAPTER B-GENERAL PROVISIONS PART I-RATES OF TAX Sec. 11. Normal tax on individuals. There shall be levied, collected, There shall be levied, collected, and paid for each taxable year upon and paid for each taxable year upon the net income of every individual the net income of every individual a normal tax of 6 per centum of a normal tax of 46 per centum of the amount of the net income in excess of the credits against net income provided in section 25. (For alternative tax if gross income from certain sources is $3,000 or less, see section 400.) 1 Should be "Supplement Q." the amount of the net income in less, Supplement T. Sec. 4, I. R. C., supra, amended by Sec. 102 (c), R. A. of 1941, by adding paragraphs (k) and (1). Sec. 118 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940. SUBCHAPTER B-GENERAL PROVISIONS PART I-RATES OF TAX Sec. 11. Normal tax on individuals. There shall be levied, collected, and paid for each taxable year upon the net income of every individual a normal tax of 4 per centum of the amount of the net income in excess of the credits against net income provided in section 25. (For alternative tax if gross income from certain sources is $3,000 or less, see section 400.) (c) Insurance companies,-Supplement G. (d) Nonresident alien individuals,-Supplement H. (e) Foreign corporations,-Supplement I. (f). Individual citizens of any possession of the United States who are not otherwise citizens of the United States and who are not resi (f) Individual citizens of any possession of the United States who are not otherwise citizens of the United States and who are not residents of the United States,-Sup-dents of the United States,-Supplement J. (g) Individual citizens of the United States or domestic corporations, satisfying the conditions of section 251 by reason of deriving a large portion of their gross income from sources within a possession of the United States,-Supplement J. plement J. (g) Individual citizens of the United States or domestic corporations, satisfying the conditions of section 251 by reason of deriving a large portion of their gross income from sources within a possession of the United States,-Supplement J. (h) China Trade_Act corpora- (h) China Trade Act corpora tions, Supplement K. tions, Supplement K. holding (i) Foreign personal holding (i) Foreign personal companies and their shareholders, companies and their shareholders, -Supplement P. -Supplement P. (j) Mutual investment compa- (j) Mutual investment companies-Supplement.1 nies-Supplement.1 Taxable Years Beginning before 1939 There shall be levied, collected, There shall be levied, collected, and paid for each taxable year upon and paid for each taxable year upon the net income of every individual the net income of every individual a normal tax of 4 per centum of a normal tax of 4 per centum of the amount of the net income in ex- the amount of the net income in excess of the credits against net in- cess of the credits against net income provided in section 25. come provided in section 25. SUBTITLE B-GENERAL PROVISIONS PART I-RATES OF TAX Sec. 11. Normal tax on individuals. See p. 2, Eighth Edition. Sec. 12. (b) Rates of surtax.- Sec. 12. (b) Rates of surtax.There shall be levied, collected, and There shall be levied, collected, and paid for each taxable year upon the paid for each taxable year upon the surtax net income of every indiv- surtax net income of every individual the surtax shown in the fol-idual the surtax shown in the following table: lowing table: Taxable Years Beginning in 1941 Sec. 11, I. R. C., amended by Sec. 102 (b) (1), R. A. of 1941, by adding language in italics. Sec. 118 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940. Sec. 12. Surtax on individuals. Sec. 12. (a) Definition of "surtax net income."-As used in this section the term "surtax net income" means the amount of the net income in excess of the credits against net income provided in section 25 (b). Sec. 12. (b) Rates of surtax.There shall be levied, collected, and paid for each taxable year upon the surtax net income of every individual a surtax as follows the surtax shown in the following table: $260, plus 16% of excess over $2,000. $580, plus 20% of excess over $4,000. $980, plus 24% of excess over $6,000. $1,460, plus 28% of cess $8,000. of ex over 000 .... cess $12,000. $3,380, plus Over $14,000 40% of ex- but not over over $16,000 cess $14,000.. $4,180, plus Over 43% of ex cess $16,000. over $14,000 $3,380, plus Over $14,000 40% of ex .... cess $14,000. $16,000 but not over over $18,000 .... but not over over $16,000 .... over |