For the purposes of this sub- For the purposes of this subchapter the net income shall be chapter the net income shall be the same as the net income for the same as the net income for income-tax purposes for the year income-tax purposes for the year in respect of which the tax under in respect of which the tax under section 600 is imposed, computed section 600 is imposed, computed without the deduction of the tax without the deduction of the tax imposed by section 600 or the tax imposed by section 600 or the tar imposed by Subchapter E of Chap imposed by Subchapter E of Chapter 2, but with a credit against net ter 2, but with a credit against net income equal to the credit for divi- income equal to the credit for dividends received provided in section dends received provided in section 26 (b) of chapter 1. 26 (b) of chapter 1.

Sec. 603. Other laws applicable. Sec. 603. Other laws applicable. Sec. 603. Other laws applicable. All provisions of law (including All provisions of law (including All provisions of law (including penalties) applicable in respect of penalties) applicable in respect of penalties) applicable in respect of the taxes imposed by chapter 1, the taxes imposed by chapter 1, the taxes imposed by chapter 1. shall, insofar as not inconsistent shall, insofar as not inconsistent shall, insofar as not inconsistent with this subchapter, be applicable with this subchapter, be applicable with this subchapter, be applicable in respect of the tax imposed by section 600, except that the provisions of section 131 of that chapter shall not be applicable.

Sec. 604. Publicity of returns.

For provisions with respect to publicity of returns under this subchapter, see subsection (a) (2) of section 55.

in respect of the tax imposed by
section 600, except that the provi-
sions of section 131 of that chap-
ter shall not be applicable.

Sec. 604. Publicity of returns.

For provisions with respect to publicity of returns under this subchapter, see subsection (a) (2) of section 55.

Sec. 605. Income-tax taxable Sec. 605. Income-tax taxable

in respect of the tax imposed by section 600, except that the provisions of section 131 of that chapter shall not be applicable.

Sec. 604. Publicity of returns.

For provisions with respect to publicity of returns under this subchapter, see subsection (a) (2) of section 55.

Sec. 605. Income-tax taxable

year of less than twelve months. year of less than twelve months. year of less than twelve months.

Sec. 605. (a) General rule.—If Sec. 605. (a) General rule.-If Sec. 605. (a) General rule.—If the income-tax taxable year is a the income-tax taxable year is a the income-tax taxable year is a period of less than twelve months period of less than twelve months period of less than twelve months on account of a change in the ac- on account of a change in the ac-on account of a change in the accounting period of the taxpayer, counting period of the taxpayer, counting period of the taxpayer, the net income determined under the net income determined under the net income determined under section 602 for such income-tax tax- section 602 for such income-tax tax-section 602 for such income-tax taxable year (referred to in this sec-able year (referred to in this sec-able year (referred to in this section as the "short taxable year") tion as the "short taxable year") tion as the "short taxable year") shall be placed on an annual basis shall be placed on an annual basis shall be placed on an annual basis by multiplying the amount thereof by multiplying the amount thereof by multiplying the amount thereof by the number of days in the twelve months ending with the close of the short taxable year and dividing by the number of days in the short taxable year. The tax shall be such part of the tax computed on such annual basis as the number of days in the short taxable year is of the number of days in the twelve months ending with the close of the short taxable year.

by the number of days in the twelve months ending with the close of the short taxable year and dividing by the number of days in the short taxable year. The tax shall be such

by the number of days in the twelve
months ending with the close of the
short taxable year and dividing by
the number of days in the short
taxable year. The tax shall be such
part of the tax computed on part of the tax computed on
such annual basis as the number of such annual basis as the number of
days in the short taxable year is days in the short taxable year is
of the number of days in the twelve of the number of days in the twelve
months ending with the close of the months ending with the close of the
short taxable year.
short taxable year.

For the purposes of this sub- For the purposes of this subchapter the net income shall be chapter the net income shall be the same as the net income for the same as the net income for income-tax purposes for the year income-tax purposes for the year in respect of which the tax under in respect of which the tax under section 600 is imposed, computed section 600 is imposed, computed without the deduction of the tax without the deduction of the tax imposed by section 600, but with imposed by section 600, but with a credit against net income equal a credit against net income equal to the credit for dividends re- to the credit for dividends received provided in section 26 (b) ceived provided in section 26 (b) of chapter 1. of chapter 1.

Taxable Years

Beginning before 1939

Sec. 603. Other laws applicable. Sec. 603. Other laws applicable. All provisions of law (including All provisions of law (including penalties) applicable in respect of penalties) applicable in respect of the taxes imposed by chapter 1, the taxes imposed by chapter 1, shall, insofar as not inconsistent shall, insofar as not inconsistent with this subchapter, be applicable with this subchapter, be applicable in respect of the tax imposed by section 600, except that the provisions of section 131 of that chapter shall not be applicable.

Sec. 605. (a) General rule.-If the income-tax taxable year is a period of less than twelve months on account of a change in the accounting period of the taxpayer, the net income determined under section 602 for such income-tax taxable year (referred to in this section as the "short taxable year") shall be placed on an annual basis by multiplying the amount thereof by the number of days in the twelve months ending with the close of the short taxable year and dividing by the number of days in the short taxable year. The tax shall be such part of the tax computed on such annual basis as the number of days in the short taxable year is of the number of days in the twelve months ending with the close of the short taxable year.

in respect of the tax imposed by
section 600, except that the provi-
sions of section 131 of that chap-
ter shall not be applicable.

Sec. 604. Publicity of returns.

For provisions with respect to publicity of returns under this subchapter, see subsection (a) (2) of section 55.

Sec. 605. (b) Exception.-If the Sec. 605. (b) Exception.-If the Sec. 605. (b) Exception.-If the taxpayer establishes the amount of taxpayer establishes the amount of taxpayer establishes the amount of the tax under section 600 for the the tax under section 600 for the the tax under section 600 for the period of twelve months beginning period of twelve months beginning period of twelve months beginning with the first day of the short tax- with the first day of the short tax- with the first day of the short taxable year, computed as if such able year, computed as if such able year, computed as if such twelve-month period were an twelve-month period were an twelve-month period were an income-tax taxable year, under the income-tax taxable year, under the income-tax taxable year, under the law applicable to the short taxable law applicable to the short taxable law applicable to the short taxable year, and using the adjusted de- year, and using the adjusted de- year, and using the adjusted declared value applicable in determin-clared value applicable in determin-clared value applicable in determining the tax for such short taxable ing the tax for such short taxable ing the tax for such short taxable year, then the tax determined under year, then the tax determined under year, then the tax determined under subsection (a) for the short tax- subsection (a) for the short tax-subsection (a) for the short taxable year shall be reduced to an able year shall be reduced to an able year shall be reduced to an amount which is such part of the amount which is such part of the amount which is such part of the tax computed for the twelve-month tax computed for the twelve-month tax computed for the twelve-month period as the net income for the period as the net income for the period as the net income for the short taxable year is of the net in- short taxable year is of the net in- short taxable year is of the net income established for such twelve- come established for such twelve- come established for such twelvemonth period. The taxpayer (other month period. The taxpayer (other month period. The taxpayer (other than a taxpayer to which the next than a taxpayer to which the next than a taxpayer to which the next sentence applies) shall compute the sentence applies) shall compute the sentence applies) shall compute the tax and file its return without the tax and file its return without the tax and file its return without the application of this subsection. If, application of this subsection. If, application of this subsection. If. prior to one year from the date of prior to one year from the date of prior to one year from the date of the beginning of the short taxable the beginning of the short taxable the beginning of the short tarable year, the taxpayer has disposed of year, the taxpayer has disposed of year, the taxpayer has disposed of substantially all its assets, in lieu of substantially all its assets, in lieu of substantially all its assets, in lieu of the twelve-month period provided the twelve-month period provided the twelve-month period provided in the preceding provision of this in the preceding provision of this in the preceding provision of this subsection, the twelve-month period subsection, the twelve-month period subsection, the twelve-month period ending with the close of the short ending with the close of the short ending with the close of the short taxable year shall be used. For the taxable year shall be used. For the taxable year shall be used. For the purposes of this subsection, the net purposes of this subsection, the net purposes of this subsection, the net income for the short taxable year income for the short taxable year income for the short taxable year shall not be placed on an annual shall not be placed on an annual shall not be placed on an annual basis under the provisions of sub-basis under the provisions of sub-basis under the provisions of subsection (a), and the net income for section (a), and the net income for section (a), and the net income for the twelve-month period used shall the twelve-month period used shall the twelve-month period used shall in no case be considered less than in no case be considered less than in no case be considered less than the net income for the short tax- the net income for the short tax- the net income for the short taxable year. The benefits of this able year. The benefits of this able year. The benefits of this subsection shall not be allowed un- subsection shall not be allowed un- subsection shall not be allowed us less the taxpayer, at such time as less the taxpayer, at such time as less the taxpayer, at such time as regulations prescribed hereunder re-regulations prescribed hereunder re-regulations prescribed hereunder require, makes application therefor inquire, makes application therefor in quire, makes application therefor in accordance with such regulations, accordance with such regulations, accordance with such regulations. and such application, in the case of and such application, in the case of and such application, in the case of a taxpayer required to file return a taxpayer required to file return a taxpayer required to file returs without regard to this subsection, without regard to this subsection, without regard to this subsection, shall be considered a claim for shall be considered a claim for shall be considered a claim for credit or refund. The Commis- credit or refund. The Commis- credit or refund. The Commissioner, with the approval of the sioner, with the approval of the sioner, with the approval of the Secretary, shall prescribe such reg- Secretary, shall prescribe such reg- Secretary, shall prescribe such regulations as he may deem necessary ulations as he may deem necessary ulations as he may deem necessary for the application of this subsec- for the application of this subsec- for the application of this subsec

tion.

Sec. 605, I. R. C., supra, added to I. R. C., by Sec. 303 (b), R. A. of 1942. Sec. 303 (c) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1939.

Sec. 650. Method of collection. Sec. 650. Method of collection. Sec. 650. Method of collection. If the amount of profit required If the amount of profit required If the amount of profit required to be paid into the Treasury under to be paid into the Treasury under to be paid into the Treasury under section 3 of the Act of March 27, section 3 of the Act of March 27, section 3 of the Act of March 27, 1934, c. 95, 48 Stat. 505, as 1934, C. 95, 48 Stat. 505, as 1934, c. 95, 48 Stat. 505, as amended by the Act of June 25, amended by the Act of June 25, amended by the Act of June 25, 1936, c. 812, 49 Stat. 1926 (U. S. 1936, c. 812, 49 Stat. 1926 (U. S. 1936, c. 812, 49 Stat. 1926 (U. S. C., Supp. III, Title 34, § 496), with C., Supp. III, Title 34, § 496), with C., Supp. III, Title 34, § 496), with respect to contracts completed respect to contracts completed respect to contracts completed within income-tax taxable years within income-tax taxable years within income-tax taxable years beginning after December 31, beginning after December 31, beginning after December 31, 1938, is not voluntarily paid, the 1938, is not voluntarily paid, the Secretary shall collect the same Secretary shall collect the same under the usual methods employed under the usual methods employed under the internal revenue laws to under the internal revenue laws to collect federal income taxes. collect federal income taxes.

1938, is not voluntarily paid, the Secretary shall collect the same under the usual methods employed under the internal revenue laws to collect federal income taxes.

Sec. 651. Laws applicable. All provisions of law (including penalties) applicable with respect to the taxes imposed by Title I of the Revenue Act of 1934, 48 Stat. 683, and not inconsistent with section 3 of said Act of March 27, 1934, shall be applicable with respect to the assessment, collection, or payment of excess profits to the Treasury as provided by section 650, and to refunds by the Treasury of overpayments of excess profits into the Treasury.

Sec. 651. Laws applicable.

Sec. 651. Laws applicable. All provisions of law (including All provisions of law (including penalties) applicable with respect penalties) applicable with respect to the taxes imposed by Title I of to the taxes imposed by Title I of the Revenue Act of 1934, 48 Stat. the Revenue Act of 1934, 48 Stat. 683, and not inconsistent with sec- 683, and not inconsistent with seetion 3 of said Act of March 27, tion 3 of said Act of March 27, 1934, shall be applicable with re- 1934, shall be applicable with respect to the assessment, collection, spect to the assessment, collection, or payment of excess profits to the or payment of excess profits to the Treasury as provided by section Treasury as provided by section 650, and to refunds by the Treas- 650, and to refunds by the Treasury of overpayments of excess ury of overpayments of excess profits into the Treasury. profits into the Treasury.

SUBCHAPTER D-UNJUST ENRICH- SUBCHAPTER D-UNJUST ENRICH- SUBCHAPTER D-UNJUST ENRICH

MENT

Sec. 700. Tax on net income from certain sources.

Sec. 700. (a) The following taxes shall be levied, collected, and paid for each taxable year (in addition to any other tax on net income), upon the net income of every person which arises from the sources specified below:

MENT

Sec. 700. Tax on net income from certain sources.

Sec. 700. (a) The following taxes shall be levied, collected, and paid for each taxable year (in addition to any other tax on net income), upon the net income of every person which arises from the sources specified below:

Sec. 700. (a) (1) A tax equal to

MENT

Sec. 700. Tax on net income from certain sources.

Sec. 700. (a) The following taxes shall be levied, collected, and paid for each taxable year (in addition to any other tax on net income), upon the net income of every person which arises from the sources specified below:

Sec. 700. (a) (1) A tax equal to Sec. 700. (a) (1) A tax equal to 80 per centum of that portion of 80 per centum of that portion of 80 per centum of that portion of the net income from the sale of the net income from the sale of the net income from the sale of articles with respect to which a articles with respect to which a articles with respect to which a Federal excise tax was imposed on Federal excise tax was imposed on such person but not paid which is such person but not paid which is attributable to shifting to others attributable to shifting to others to any extent the burden of such to any extent the burden of such Federal excise tax and which does Federal excise tax and which does not exceed such person's net in- not exceed such person's net income for the entire taxable year come for the entire taxable year from the sale of articles with re- from the sale of articles with respect to which such Federal excise spect to which such Federal excise tax was imposed. tax was imposed.

Sec. 700. (a) (2) A tax equal to 80 per centum of the net income from reimbursement received by

Sec. 700. (a) (2) A tax equal to

Federal excise tax was imposed on such person but not paid which is attributable to shifting to others to any extent the burden of such Federal excise tax and which does not exceed such person's net income for the entire taxable year from the sale of articles with respect to which such Federal excise tax was imposed.

Sec. 700. (a) (2) A tax equal to 80 per centum of the net income 80 per centum of the net income from reimbursement received by from reimbursement received by