Act of 1917.

Act of 1916.

Act of 1913.

SEC. 8. (b) On or before the SEC. 8. (b) On or before the first day of March, nineteen hun- first day of March, nineteen hundred and seventeen, and the first dred and seventeen, and the first day of March in each year there- day of March in each year thereafter, a true and accurate re- after, a true and accurate return turn under oath shall be made under oath shall be made by by each person of lawful age, each person of lawful age, exexcept as hereinafter provided, cept as hereinafter provided, having a net income of $3,000 or having a net income of $3,000 or over for the taxable year to the over for the taxable year to the collector of internal revenue for collector of internal revenue for the district in which such per- the district in which such person has his legal residence or son has his legal residence or

D. [2] On or before the first day of March, nineteen hundred and fourteen, and the first day of March in each year thereafter, a true and accurate return, under oath or affirmation, shall be made by each person of lawful age, except as hereinafter provided, subject to the tax imposed by this section, and having a net income of $3,000 or over for the taxable year, to the collector of internal revenue for the district

principal place of business, or principal place of business, or if
if there be no legal residence or there be no legal residence or
place of business in the United place of business in the United
States, then with the collector States, then with the collector of
of internal revenue at Balti- internal revenue at Baltimore,
more, Maryland, in such form as Maryland, in such form as the
the Commissioner of Internal Commissioner of Internal Rev-
Revenue, with the approval of enue, with the approval of the
the Secretary of the Treasury, Secretary of the Treasury, shall
shall prescribe, setting forth prescribe, setting forth specif-
specifically the gross amount of ically the gross amount of in-
income from all separate sources, come from all separate sources,
and from the total thereof de- and from the total thereof de-
ducting the aggregate items of ducting the aggregate items of
allowances herein authorized: allowances herein authorized:
Provided, That the Commis- Provided, That the Commis-
sioner of Internal Revenue shall sioner of Internal Revenue shall
have authority to grant a rea- have authority to grant a rea-
sonable extension of time, in sonable extension of time, in
meritorious cases, for filing re- meritorious cases, for filing re-
turns of income by persons re- turns of income by persons re-
siding or traveling abroad who siding or traveling abroad who
are required to make and file are required to make and file
returns of income and who are returns of income and who are
unable to file said returns on or unable to file said returns on
before March first of each year: or before March first of each
Provided further, That the year: Provided further, That
aforesaid return may be made the aforesaid return may be
by an agent when by reason of made by an agent when by rea-
illness, absence, or nonresidence son of illness, absence, or non-
the person liable for said residence the person liable for
turn is unable to make and said return is unable to make
render the same, the agent as-
and render the same, the agent
suming the responsibility of mak- assuming the responsibility of
ing the return and incurring making the return and incur-
penalties provided for errone- ring penalties provided for er-
ous, false, or fraudulent return. roneous, false, or fraudulent
SEC. 8. (f) In every return return.

re

shall be included the income de- SEC. 8. (f) In every return
rived from dividends on the shall be included the income de-
capital stock or from the net rived from dividends on the
earnings of any corporation, capital stock or from the net
joint-stock company or associa-earnings of any corporation,
tion, or insurance company,
joint-stock company or associa-
except that in the case of tion, or insurance company,
resident aliens such income de- except that in the case of non-
rived from sources without the resident aliens such income de-
United States shall not be in- rived from sources without the

cluded.

non

United States shall not be in-
cluded.

SEC. 19. The collector or depuSEC. 19. The collector or deputy collector shall require every ty collector shall require every return to be verified by the oath return to be verified by the oath of the party rendering it. If of the party rendering it. If the collector or deputy collec- the collector or deputy collector tor have reason to believe that have reason to believe that the the amount of any income re- amount of any income returned

Act of 1913.

in which such person resides or has his principal place of business, or, in the case of a person residing in a foreign country, in the place where his principal business is carried on within the United States, in such form as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall prescribe, setting forth specifically the gross amount of income from all separate sources and from the total thereof, deducting the aggregate items or expenses and allowance herein authorized:

D. [6] Provided further, That persons liable for the normal income tax only, on their own account or in behalf of another, shall not be required to make return of the income derived from dividends on the capital stock or from the net earnings of corporations, joint-stock companies or associations, and insurance companies taxable upon their net income as hereinafter provided. Any person for whom return has been made and the tax paid, or to be paid as aforesaid, shall not be required to make a return unless such person has other net income, but only one deduction of $3,000 shall be made in the case of any such person.

D. [7] The collector or deputy collector shall require every list to be verified by the oath or affirmation of the party rendering it. If the collector or depcollector have reason to uty believe that the amount of any

Act of 1924.

Act of 1921.

Act of 1918.

the return should not be in- the return should not be in-
creased, and upon proof of the creased, and upon proof of the
amount understated, may in- amount understated, may in-
crease the same accordingly. crease the same accordingly.
Such taxpayer may furnish Such taxpayer may furnish
sworn testimony to prove any sworn testimony to prove any
relevant facts and if dissatisfied relevant facts and if dissatisfied
with the decision of the collector with the decision of the collector
may appeal to the Commissioner may appeal to the Commissioner
for his decision, under such rules for his decision, under such
of procedure as may be pre- rules of procedure as may be
scribed by the Commissioner prescribed by the Commissioner
with the approval of the Secre- with the approval of the Secre-
tary.
tary.

205 Sec. 211, p. 64.

INCORPORATION OF INDIVIDUAL OR
PARTNERSHIP BUSINESS.

SEC. 229. That in the case of
the organization as a corporation
within four months after the
passage of this Act of any trade
or business in which capital is a
material income-producing fac-
tor, and which was previously
owned by a partnership or in-
dividual, the net income of such
trade or business from January
1, 1921, to the date of such or-
ganization may at the option of
the individual or partnership be
taxed as the net income of a cor-
poration is taxed under Titles II
and III; in which event the net
income and invested capital of
such trade or business shall be
computed as if such corporation
had been in existence on and
after January 1, 1921, and the
undistributed profits or earnings
of such trade or business shall
not be subject to the surtaxes
imposed in section 211,205 but
amounts distributed on and after
January 1, 1921, from the earn-
ings or profits of such trade or
business accumulated after De-
cember 31, 1920, shall be taxed
to the recipients as dividends;
and all the provisions of Titles
II and III relating to corpora-
tions shall so far as practicable
apply to such trade or business :
Provided, That this section shall
not apply to any trade or busi-
ness, the net income of which for

Act of 1917.

turned is understated, he shall give due notice to the person making the return to show cause why the amount of the return should not be increased, and upon proof of the amount understated may increase the same accordingly. Such person may furnish sworn testimony to prove any relevant facts, and, if dissatisfied with the decision of the collector, may appeal to the Commissioner of Internal Revenue for his decision under such rules of procedure as may be prescribed by regulation.

is understated, he shall give due income returned is understated,
notice to the person making the he shall give due notice to the
return to show cause why the person making the return to
amount of the return should not show cause why the amount of
be increased, and upon proof of the return should not be in-
the amount understated may in- creased, and upon proof of the
crease the same accordingly. amount understated may in-
Such person may furnish sworn crease the same accordingly. If
testimony to prove any relevant dissatisfied with the decision of
facts, and, if dissatisfied with the collector, such person may
the decision of the collector, may submit the case, with all the
appeal to the Commissioner of papers, to the Commissioner of
Internal Revenue for his deci- Internal Revenue for his de-
sion under such rules of pro- cision, and may furnish sworn
cedure as may be prescribed by testimony of witnesses to prove
regulation.
any relevant facts.