Act of 1924. of part only of the property of an individual) shall make under oath a return for any of the following individuals, estates, or trusts for which he acts, stating specifically the items of gross income thereof and the deductions and credits allowed under this title (1) Every individual having a net income for the taxable year of $1,000 or over, if single, or if married and not living with husband or wife; (2) Every individual having a net income for the taxable year of $2,500 or over, if married and living with husband or wife; (3) Every individual having a gross income for the taxable year of $5,000 or over, regardless of the amount of his net in come; (4) Every estate or trust the net income of which for the taxable year is $1,000 or over; (5) Every estate or trust the gross income of which for the taxable year is $5,000 or over, regardless of the amount of the net income; and (6) Every estate or trust of which any beneficiary is a nonresident alien. Act of 1921. possession of part only of the (1) Every individual having Act of 1918. or part only of the property of an individual) shall make under oath a return for the individual, estate or trust for which he acts (1) if the net income of such individual is $1,000 or over if single or if married and not living with husband or wife, or $2,000 or over if married and living with husband or wife, or (2) if the net income of such estate or trust is $1,000 or over or if any beneficiary of such estate trust is a nonresident alien, stating specifically the items of the gross income and the deductions and credits allowed by this title. Under such regulations as the Commissioner with the approval of the Secretary may prescribe, a return made by one of two or more joint fiduciaries and filed in the office of the collector of the district where such fiduciary (4) Every estate or trust the resides shall be a sufficient comnet income of which for the tax-pliance with the above requireable year is $1,000 or over; and (2) Every individual having a net income for the taxable year of $2,000 or over, if married and living with husband or wife; (3) Every individual having a gross income for the taxable year of $5,000 or over, regardless of the amount of his net income; (5) Every estate or trust of which any beneficiary is a nonresident alien. SEC. 225. (b) Under such reg- SEC. 225. (b) Under such ulations as the Commissioner regulations as the Commissioner with the approval of the Secre- with the approval of the Secretary may prescribe a return tary may prescribe a return made by one of two or more made by one of two or more joint fiduciaries and filed in the joint fiduciaries and filed in the office of the collector of the dis-office of the collector of the district where such fiduciary resides trict where such fiduciary resides shall be sufficient compliance shall be sufficient compliance with the above requirement. with the above requirement. Such fiduciary shall make oath Such fiduciary shall make oath (1) that he has sufficient knowl- (1) that he has sufficient knowledge of the affairs of the indi- edge of the affairs of the individual, estate or trust for which vidual, estate or trust for which the return is made, to enable the return is made, to enable him him to make the return, and (2) to make the return, and (2) that that the return is, to the best of the return is, to the best of his his knowledge and belief, true knowledge and belief, true and 200 (a) A trustee was not required to make a return of income received by him under the terms of a will, where the beneficiary thereto was not determinable until the happening of a future contingency. There was no "person" in existence who, if acting in his own behalf, would have been required to make return. ment. The fiduciary shall make oath that he has sufficient knowledge of the affairs of such individual, estate or trust to enable him to make the return, and that the same is, to the best of his knowledge and belief, true and correct. Smietanka v. First Trust & Savings Bank, (1922) 257 U. S. 602, affirming Id., (C. C. A., Seventh Cir. 1920) 268 Fed. 230. 200 (b) The provisions of revenue laws are not to be extended by implication. Smietanka (Col.) v. First Act of 1917. eighth, nineteen hundred and sixteen, are hereby amended to read as follows: Act of 1916. Act of 1913. 201 SEC. 8. "(c) Guardians, trus- SEC. 8. (c) Guardians, trus- D. [3] guardians, trustees, 200 tees, 202 executors, administrators, tees, executors, administrators, executors,2 administrators, receivers, conservators, and all receivers, conservators, and all agents, receivers, conservators, persons, corporations, or associa- persons, corporations, or asso- and all persons, corporations, or tions, acting in any fiduciary ca- ciations acting in any fiduciary associations acting in any fidupacity, shall make and render a capacity, shall make and render ciary capacity, shall make and return of the income of the per- a return of the income of the render a return of the net inson, trust, or estate for whom or person, trust, or estate for whom come of the person for whom which they act, and be subject or which they act, and be sub- they act, subject to this tax, to all the provisions of this title ject to all the provisions of this coming into their custody or which apply to individuals. Such title which apply to individuals. control and management, and be fiduciary shall make oath that he Such fiduciary shall make oath subject to all the provisions of has sufficient knowledge of the that he has sufficient knowledge this section which apply to inaffairs of such person, trust, or of the affairs of such person, dividuals: Provided, That a reestate to enable him to make trust, or estate to enable him to turn made by one of two or more such return and that the same make such return and that the joint guardians, trustees, execuis, to the best of his knowledge same is, to the best of his knowl- tors, administrators, agents, reand belief, true and correct, and edge and belief, true and cor- ceivers, and conservators, be subject to all the provisions rect, and be subject to all the other persons acting in a fiduof this title which apply to indi- provisions of this title which ap- ciary capacity, filed in the disviduals: Provided, That a return ply to individuals: Provided, trict where such person resides, made by one of two or more That a return made by one of or in the district where the will joint fiduciaries filed in the dis- two or more joint fiduciaries or other instrument under trict where such fiduciary re- filed in the district where such which he acts is recorded, under sides, under such regulations as fiduciary resides, under such such regulations as the Secretary the Secretary of the Treasury regulations as the Secretary of of the Treasury may prescribe, may prescribe, shall be a suffi- the Treasury may prescribe, shall be a sufficient compliance cient compliance with the re- shall be a sufficient compliance with the requirements of this quirements of this paragraph: with the requirements of this paragraph; Provided further, That no re- paragraph. turn of income not exceeding $3,000 shall be required except as in this title otherwise provided. or Trust & Savings Bank, (1922) 257 U. S. 602, affirm- come of such person. Brady v. Anderson (Col.), (C. C. A., Second Cir. 1917) 240 Fed. 665. 202 A testamentary trustee is a taxable person under the Act of 1917. Merchants' Loan and Trust Co. v. Smietanka (Ex-Col.), (1921) 255 U. S. 509. Act of 1924. and correct. Any fiduciary required to make a return under this Act shall be subject to all the provisions of this Act which apply to individuals. Act of 1921. correct. Any fiduciary required to make a return under this Act shall be subject to all the provisions of this Act which apply to individuals. Act of 1918. RETURNS FOR A PERIOD OF LESS THAN TWELVE MONTHS. SEC. 226. (a) If a taxpayer, with the approval of the Commissioner, changes the basis of computing net income from fiscal year to calendar year a separate return shall be made for the period between the close of the last fiscal year for which return was made and the following December 31. If the change is from calendar year to fiscal year, a separate return shall be made for the period between the close of the last calendar year for which return was made and the date designated as the close of the fiscal year. If the change is from one fiscal year to another fiscal year a separate return shall be made for the period between the close of the former fiscal year and the date designated as the close of the new fiscal year. SEC. 226. (b) Where a separate return is so made, and in all other cases where a separate return is required or permitted, by regulations prescribed by the Commissioner with the approval of the Secretary, to be made for a fractional part of a year, then the income shall be computed on the basis of the period for which separate return is made. SEC. 226. (c) If a separate return is made under subdivision (a) the net income, computed in RETURNS FOR A PERIOD OF LESS THAN TWELVE MONTHS. SEC. 226. (a) That if a taxpayer, with the approval of the Commissioner, changes the basis of computing net income from fiscal year to calendar year a separate return shall be made for the period between the close of the last fiscal year for which return was made and the following December 31. If the change is from calendar year to fiscal year, a separate return shall be made for the period between the close of the last calendar year for which return was made and the date designated as the close of the fiscal year. If the change is from one fiscal year to another fiscal year a separate return shall be made for the period between the close of the former fiscal year and the date designated as the close of the new fiscal year. RETURNS WHEN ACCOUNTING PERIOD CHANGED. SEC. 226. That if a taxpayer, with the approval of the Commissioner, changes the basis of computing net income from fiscal year to calendar year a separate return shall be made for the period between the close of the last fiscal year for which return was made and the following December thirty-first. If the change is from calendar year to fiscal year, a separate return shall be made for the period between the close of the last calendar year for which return was made and the date designated as the close of the fiscal year. If the change is from one fiscal year to another fiscal year a separate return shall be made for the period between the close of the former fiscal year and the date designated as the close of the new fiscal year. If a taxpayer making his first reSEC. 226. (b) In all cases turn for income tax keeps his acwhere a separate return is made counts on the basis of a fiscal for a part of a taxable year the year he shall make a separate net income shall be computed on return for the period between the basis of such period for the beginning of the calendar which separate return is made, year in which such fiscal year and the tax shall be paid thereon ends and the end of such fiscal at the rate for the calendar in which such period is included. year SEC. 226. (c) In the case of a return for a period of less than one year the net income shall be placed on an annual basis203 by multiplying the amount thereof 203 (a) Sec. 226 (c) of the Act of 1921 applied to all returns of income for a period of less than twelve months; hence, it applied to a return made for a decedent for the fractional year prior to his death as well as the return made by his executors for the fractional year subsequent to his death. Bankers Trust Co. v. Edwards (Col.), (D. C., S. D. N. Y. 1923) 292 Fed. 793. 203 (b) Sec. 226 (c) of the Act of 1921 was not year. In all of the above cases the net income shall be computed on the basis of such period for which separate return is made, and the tax shall be paid thereon at the rate for the calendar year unconstitutional, although by placing the income of decedents on an annual basis, the surtax was higher. The rates imposed were uniform. Every taxpayer under the same circumstances paid the same tax, and, therefore, there was no discrimination. Bankers Trust Co. v. Edwards (Col.), (D. C., S. D. N. Y. 1923) 292 Fed. 793. 203 (c) Sec. 226 (c) of the Act of 1921 was not unconstitutional as taxing as income that which was not Act of 1917. Act of 1916. Act of 1913. income under the Sixteenth Amendment. Bankers Trust Co. v. Edwards (Col.), (D. C., S. D. N. Y. 1923) 292 Fed. 793. 203 (d) Sec. 226 (c) of the Act of 1921 was not unconstitutional as violative of the Fifth Amendment, because it operated to determine the net income of decedents by a rule different from that of living persons by denying the former substantial deductions accorded to the latter, and in that it taxed a decedent a substantially larger amount than a living person on exactly the same amount of net income. Bankers Trust Co. v. Edwards (Col.), (D. C., S. D. N. Y. 1923) 292 Fed. 793. 203 (e) "Even though a statute may operate oppressively upon some taxpayers, or even all, is no reason for the judicial department to declare the same void." Bankers Trust Co. v. Edwards (Col.), (D. C., S. D. N. Y. 1923) 292 Fed. 793. Act of 1924. accordance with the provisions of subdivision (b), shall be placed on an annual basis by multiplying the amount thereof by twelve and dividing by the number of months included in the period for which the separate return is made. The tax shall be such part of the tax computed on such annual basis as the number of months in such period is of twelve months. SEC. 226. (d) The Commissioner with the approval of the Secretary shall by regulations prescribe the method of applying the provisions of subdivisions (b) and (c) to cases where the taxpayer makes a separate return under subdivision (a) and it appears that for the period for which the return is so made he has derived a capital net gain, or sustained a capital net loss, or received earned in come. SEC. 226. (e) In the case of a return made for a fractional part of a year, except a return made under subdivision (a), the credits provided in subdivisions (c), (d), and (e) of section 216204 shall be reduced respectively to amounts which bear the same ratio to the full credits provided in such subdivisions as the number of months in the period for which return is made bears to twelve months. by twelve and dividing by the in which such period is innumber of months included in cluded; and the credits provided such period; and the tax shall in subdivisions (c) and (d) of be such part of a tax computed section 216204 shall be reduced on such annual basis as the num- respectively to amounts which ber of months in such period is bear the same ratio to the full of twelve months. credits provided in such subdivisions as the number of months in such period bears to twelve months. TIME AND PLACE FOR FILING INDIVIDUAL, PARTNERSHIP, AND FIDUCIARY RETURNS. SEC. 227. (a) Returns (except in the case of nonresident aliens) shall be made on or before the fifteenth day of the third month following the close of the fiscal year, or, if the return is made on the basis of the calendar year, then the return shall be made on or before the 15th day of March. In the case of a nonresident alien individual returns shall be made on or before the fifteenth day of the sixth month TIME AND PLACE FOR FILING INDIVIDUAL, PARTNERSHIP, AND FIDUCIARY RETURNS. SEC. 227. (a) That returns (except in the case of nonresident aliens) shall be made on or before the fifteenth day of the third month following the close of the fiscal year, or, if the return is made on the basis of the calendar year, then the return shall be made on or before the 15th day of March. In the case of a nonresident alien individual returns shall be made on or before the fifteenth day of the 204 Sec. 216 (c), (d) and (e), pp. 116, 118. TIME AND PLACE FOR FILING RETURNS. SEC. 227. (a) That returns shall be made on or before the fifteenth day of the third month following the close of the fiscal year, or, if the return is made on the basis of the calendar year, then the return shall be made on or before the fifteenth day of March. The Commissioner may grant a reasonable extension of time for filing returns whenever in his judgment good cause exists and shall keep |