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To War Revenue Act and Federal
Income Tax Law

I. War Revenue Act

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Abatement of excess profits tax, claim for
Administrative provisions of War Revenue Act
Contracts preventing addition of tax to purchase price
Dealer, definition of

Extension of present administrative provisions

Installment payments of income and excess profits taxes
Payment, forms in which may be made

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Carriers transporting their own commodities, subject to tax.
Casualty insurance, tax on

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Cigars, Tobacco and Manufactures thereof, war tax on:
Cigarette papers, tax on

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Contracts preventing addition of tax to purchase price.
Conveyances, stamp tax on..

Cosmetics and toilet articles, tax on
Custom house entries, stamp tax on

Custom house entries for withdrawal, stamp tax on.

Date stamp taxes are effective.....

Date tax on cigars, tobacco, etc., is effective.
Date War Revenue Act is effective.....

Definitions:

"Admission" for admission tax
"Business" for excess profits tax.
"Capital" for excess profits tax...
"Corporation" for excess profits tax.
"Dealer"

“Domestic” for excess profits tax.
"First taxable year" for excess profits tax
"Fiscal year" for excess profits tax
"Foreign" for excess profits tax
"Net income" for excess profits tax..
"Prewar period" for excess profits tax.
"Taxable year" for excess profits tax.

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Basis

Rates

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...

Tax does not apply to estates transferred as result of death while in
military service of U. S. or as a result of injuries received in such
service

Ethyl alcohol, regulations in regard to

Excess profits tax:

Administrative provisions

Commissioner to make necessary regulations.

Extension of administrative provisions of law of this Act..

All activities of corporation or partnership deemed a single business.
Assessment of tax, basis of...

Bond from claimant

Claim for abatement

Collection of tax on which abatement is claimed.

Business, law applies to every

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Exceptions:

Corporations exempted from income tax, and partnerships and in-
dividuals engaged in same business

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Government officials

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Income from weekly premium payment insurance.

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Exemption:

Foreign corporations and non-resident aliens, whose income is less

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For domestic corporations and partnerships

For foreign corporations and partnerships and nonresident aliens.

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How averaged

Deduction and net income, proportion between to be determined by
Commissioner of Internal Revenue

Deduction from war excess profits, how to determine..

Deductible percentage to be determined by Commissioner of Internal
Revenue

Domestic corporations

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Foreign corporations and nonresident aliens..

Domestic partnerships and citizens or residents of U. S..

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Where average prewar income cannot be determined.

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Where business is a reorganization or combination of one in existence
during prewar period...

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Where business was not in existence during prewar period............
Where business yielded no net income during prewar period...
Where net income was relatively low during prewar period........ 18
Definitions:

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"Foreign"

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"Net income" for nonresident aliens and foreign corporations.

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Munitions manufactures, tax of Sept. 8, 1916, on, lowered to 10 per
cent.

Net income of corporation, how to determine.

For 1911 and 1912

For 1913

For taxable year

Net income of individuals and partnerships, how to determine..
Repeal of Excess Profits Tax of March 3, 1917...........

Taxes paid thereunder credited toward war excess profits tax of
October 3, 1917...

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Cosmetics and toilet articles.

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Games

Jewelry

Motion picture films.

Negatives

Positives

Musical instruments

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Extension of present administrative provisions of new taxes..
Extracts, tax on

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Facilities furnished by public utilities and insurance, war tax on..

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Date Act is effective

Invalidity of any section

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Repeal of special preparedness fund of Act of March 3, 1917...

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Dividends are deemed to be paid out of net income of taxable year..
Excess profits taxes assessed may be deducted from net income of
taxable year for income tax purposes...

Exemption, specific personal, allowed only to citizens or residents of
the United States..

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Foreign interest and dividend payments; collectors of, must furnish
information as to recipients....

Funds withheld under Act of 1916, release of...

Income and excess profits taxes paid during taxable year not deductible

from net income:

Corporations

Domestic

Foreign

Individuals

Citizens or residents.

Nonresident aliens

Information:

By brokers of customers and their profits and losses

By corporations of dividends paid and recipients thereof

Of fixed and determinable payments in excess of $800..

Of interest payments on bonds, mortgages and deeds of trust,
regardless of amount

Penalties for refusal to furnish or for fraudulent..

Interest paid on debt incurred in purchase of tax-exempt securities
is not deductible from net income:

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Domestic
Foreign

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Individuals

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Citizens or residents.

Nonresident aliens

Obligations of United States issued after September 1, 1917, exempt
from income tax only to extent provided for in act authorizing
issue

Partnerships may fix their own fiscal year....

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Returns:

Fiduciaries need make none for income not in excess of $3,000..... 75
Nonresident aliens must file, to obtain credits and deductions..
Requirement that nonresident aliens file, to obtain benefit of specific
personal exemption (no longer allowed them) repealed....

Specific personal exemption:

Allowed only to citizens and residents of the United States....

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