the sum of $5,000, and the tax shall be computed upon the remainder. The provisions in the present act through the words "upon which its annual return shall be filed," are new.

In the present act the provision beginning with the words, "All corporations, joint-stock companies or associations" and ending with the words "setting forth" just before "(first)" is considerably changed from the provision in the act of 1909.

The provision beginning with "(first)" in the present act differs from that in the act of 1909 in that the words "or if no capital stock its capital employed in business" are inserted.

At the end of the provision beginning with "(third)" there is a clause in the act of 1909 as to dividends upon stock of other corporations, which does not appear in the present act.

The provision beginning with " "(fourth)" is the same in both acts save that the words "all charges such as rentals or franchise payments" in the act of 1909 are changed to "all rentals or other payments," in the present act.

The first part of the provision beginning with "(fifth)" is the same in both acts, save that the order of the words in the clause beginning with "in case of insurance companies" is changed. The provisions as to insurance

companies each beginning with "Provided further" are new in the present act.

In the act of 1909 "sixth" is as follows. "The amount of interest actually paid within the year on its bonded or other indebtedness to an amount of such bonded and other indebtedness not exceeding the paid-up capital stock of such corporation, joint-stock company or association, or insurance company, outstanding at the close of the year, and in the case of a bank, banking association, or trust company, stating separately all interest paid by it within the year on deposits; or in case of a corporation, joint-stock company or association, or insurance company, organized under the laws of a foreign country, interest so paid on its bonded or other indebtedness to an amount of such bonded and other indebtedness not exceeding the proportion of its paid-up capital stock outstanding at the close of the year, which the gross amount of its income for the year from business transacted and capital invested within the United States and any of its Territories, Alaska, and the District of Columbia, bears to the gross amount of its income derived from all sources within and without the United States."

As to "seventh," the words "as a condition to carrying on business therein" in the act of 1909 do not appear in the present act.

The last paragraph of this sub-section beginning with the words "all assessments shall be made" and ending with the words "from the time the same becomes due" is identical with the last part of paragraph "Fifth" of the act of 1909, except that in the present act there is inserted the clause beginning "Provided, that every corporation" and ending with "income for assessment." Also towards the end of the paragraph the clause "as provided for in this section or by existing law" is substituted for "as above provided for."

The words "or after one hundred and twenty days from the date on which the return of income is required to be made by the taxpayer" are inserted in the present act.

INSTRUCTIONS AS TO RETURNS.

In 23 Treas. Decis. (1806) it is stated that "it is incumbent upon every corporation, not specifically enumerated as exempt, to file its return within the prescribed time or, in lieu of a return, to file a statement within that time showing that it is exempt by reason of the character and purpose of its organization, and whether or not it was actually carrying on or doing business for profit during the year for which the return is required.

Returns filed on or before March 1, which were returned for amendment and again received by the collector after March 1, will be marked as received by the collector on the date of first filing. 20 Treas. Decis. (1705).

Increased valuations of assets entered on books of corporations to be included in gross income in their returns of annual net income. Such increased valuations are not required to be entered on books. 20 Treas. Decis. (1706).

All corporations of the kinds specified in the act as subject to the tax are bound to file returns, though their net profits are not sufficient to render them liable to the tax. United States v. Military Const. Co., 204 Fed. Rep. 153; United States v. Acorn Roofing Co., 204 Fed. Rep. 157. Every corporation subject to the tax must make returns whether or not its net income is large enough to make it liable for any amount of the tax. For a mere failure to make such returns in time, in the case of corporations with incomes so limited as not to be liable to the payment of any tax, liberal compromise is a course required by the spirit and policy of the laws of the United States. 29 Atty. Gen. Op. 219.

Under a State corporation law it was held that the officers of a corporation, which had

dissolved, were to make the return. United States v. General Inspection Co., 192 Fed. Rep. 223.

As to when so-called mutual building and loan associations should make the required return, see 19 Treas. Decis. (1655).

Where returns are filed within the time required and returned for correction, and correct returns subsequently filed, names should be stricken from delinquent list. 21 Treas. Decis. (1711).

Instructions as to regular lists and all corporation-tax lists are given in 19 Treas. Decis. (1639). As to not granting extension of time where the application was not made on or before a certain date, see 20 Treas. Decis. (1702).

Suggestions as to returns by manufacturing and mercantile corporations are given in 19 Treas. Decis. (1588).

Inspection of returns of corporations, executive order, and regulations will be found in 19 Treas. Decis. (1665).

It was held in United States v. General Inspection Co., 204 Fed. Rep. 657, that the notice of the assessment required to be given to the corporation by subdivision 5 of the act of 1909 might lawfully be given by mail, and a notice so sent by the collector in a