(ii) Return required.-A nonresident alien individual within class 1 shall make or have made a return on Form 1040NB with respect to that portion of his income described in paragraph (b) of § 1.871-7 upon which the tax has not been fully satisfied at the source, including such income upon which the tax is limited by tax convention. A return shall be made in such instance even though the individual's gross income from sources within the United States for the taxable year is less than $600.

(iii) Items upon which tax not fully satisfied.-Some of the items of income from sources within the United States upon which the tax liability will not have been fully satisfied at the source are

(a) Interest upon so-called tax-free covenant bonds upon which, in accordance with § 1.1451-1, a tax of only 2 percent is required to be withheld at the source;

(b) Capital gains described in paragraph (b)(4) of § 1.871-7, which are not subject to withholding under § 1.1441-1;

(c) Accrued interest received in connection with the sale of bonds between interest dates, which, in accordance with paragraph (a)(2) of § 1.1441-4, is not subject to withholding; and

(d) Dividends from foreign corporations which are not subject to withholding under paragraph (b) (2) of § 1.1441-3 but do constitute income from sources within the United States under paragraph (a) (2) of § 1.861-3.

(iv) Claim for refund.-Notwithstanding the provisions of subdivisions (i) and (ii) of this subparagraph, a nonresident alien individual within class 1 shall include on Form 1040NB his entire income described in paragraph (b) of § 1.871-7, whether or not the tax has been fully satisfied at the source upon a portion thereof, if a claim for the refund of an overpayment of tax is made in accordance with section 6402 and the regulations thereunder. However, if the overpayment to be refunded consists solely of tax deemed to have been paid under section 852 (b) (3) (D), relating to undistributed capital gains of a regulated investment company, it is not necessary to include on the Form 1040NB the entire income described in paragraph (b) of § 1.871-7.

(2) Individuals in class 2 (no United States business and gross income of more than $15,400).-Even though the tax has been fully satisfied at the source, every nonresident alien individual within class 2, as described in paragraph (a) (2) of § 1.871-7, shall make or have made a return on Form 1040NB-a of all his income described in paragraph (c) of § 1.871-7, including such income upon which the tax is limited by tax convention. However, if the gross income of an individual within class 2 consists of treaty income only, as defined in paragraph (e) of § 1.871-7, or if the nontreaty income does not exceed $15,400 in the aggregate, the return shall be made on Form 1040NB in the manner and to the extent otherwise required in subparagraph (1) of this paragraph. See paragraph (e) (2) of § 1.871-7. (3) Individuals in class 3 (United States business).-Every nonresident alien individual within class 3, as described in paragraph (a)(3) of § 1.871-7, shall make or have made a return on Form 1040B of all his income described in paragraph (d) of § 1.871-7, including such income upon which the tax is limited by tax convention, even

though his gross income from sources within the United States for the taxable year is less than $600. No exception is made to this requirement in the case of such an individual who is a resident of Canada or Mexico. However, if the gross income of a nonresident alien individual within class 3 consist of treaty income only and the tax is determined by applying the limited rates applicable under the convention, then the return shall be made on Form 1040NB in the manner and to the extent otherwise required by subparagraph (1) of this paragraph. See paragraph (e)(3) and (5) of § 1.871-7. When used for this purpose, Form 1040NB shall be appropriately marked in accordance with the instructions issued with respect to

the return.

(4) Treaty income.-If the gross income of a nonresident alien Individual to which this pargaraph applies includes income on which the tax is limited by tax convention, see paragraph (e) of § 1.871-7. (5) Claims for refund.-(i) Forms to use.-In the case of any overpayment of income tax by a nonresident alien individual to which this paragraph applies, claim for refund may be made in accordance with section 6402 and the regulations thereunder.

(ii) Tax withheld at source. If an overpayment has resulted from the withholding of tax at source under chapter 3 of the Code, statements shall be attached to the claim for refund showing accurately (a) the amounts of tax withheld, with the names and post office addresses of withholding agents and, (b) if applicable, facts sufficient to show that, at the time when the income was derived, the taxpayer was entitled to the benefit of a reduced rate of, or exemption from, tax with respect to that income under the provisions of a tax convention to which the United States is a party. For an illustration of the statements to be furnished when claiming the benefit of a reduced rate or exemption under a tax convention, see § 7.710 of Treasury Decision 6030, approved July 10, 1953 (26 CFR (1939) 7.710) [C. B. 1953-2, 185]; § 501.11 of Treasury Decision 6108, approved October 13, 1954 (§ 501.11 of this chapter) [C. B. 1954-2, 614]; and § 502.10 of Treasury Decision 6109, approved October 13, 1954 (§ 502.10 of this chapter) [C. B. 1954-2, 638]. For the refund to the withholding agent of an overpayment of the tax under chapter 3 of the Code, see § 1.1464-1.

(6) Representative or agent for nonresident alien individuals.— (i) In general.-The responsible representative or agent within the United States of a nonresident alien individual shall make in behalf of his nonresident alien principal a return of, and shall pay the tax on, all income from sources within the United States coming within his control as representative or agent. The agency appointment will determine how completely the agent is substituted for the principal for tax purposes. Any person who collects interest or dividends on deposited securities of a nonresident alien individual, executes ownership certificates in connection therewith, or sells such securities under special instructions shall not be deemed merely by reason of such acts to be the responsible representative or agent of the nonresident alien individual.

(ii) Income to be returned.-A return of income shall be required under this subparagraph only if the nonresident alien individual is otherwise required to make a return in accordance with this paragraph. The provisions of this parargaph shall apply in determining the form of return to be used and the income to be returned.

(c) Cross reference.-For returns by fiduciaries for individuals, estates, and trusts, see § 1.6012-3.

$1.6012-2 CORPORATIONS REQUIRED TO MAKE RETURNS OF INCOME. (a) In general.-(1) Requirement of return.-Except as provided in paragraphs (e) and (g) (1) of this section with respect to charitable and other organizations having unrelated business income and to certain foreign corporations, respectively, every corporation, as defined in section 7701 (a) (3), subject to taxation under subtitle A shall make a return of income regardless of whether it has taxable income or regardless of the amount of its gross income.

(2) Existence of corporation.-A corporation in existence during any portion of a taxable year is required to make a return. If a corporation was not in existence throughout an annual accounting period (either calendar year or fiscal year), the corporation is required to make a return for that fractional part of a year during which it was in existence. A corporation is not in existence after it ceases business and dissolves, retaining no assets, whether or not under State law it may thereafter be treated as continuing as a corporation for certain limited purposes connected with winding up its affairs, such as for the purpose of suing and being sued. If the corporation has valuable claims for which it will bring suit during this period, it has retained assets and therefore continues in existence. A corporation does not go out of existence if it is turned over to receivers or trustees who continue to operate it. If a corporation has received a charter but has never perfected its organization and has transacted no business and has no income from any source, it may upon presentation of the facts to the district director be relieved from the necessity of making a return. In the absence of a proper showing of such facts to the district director, a corporation will be required to make a return.

(3) Form of return.-The return required of a corporation under this section shall be made on Form 1120 unless the corporation is of a type for which a special form is prescribed. The special forms of returns and schedules required of particular types of corporations are set forth in paragraphs (b) to (g), inclusive, of this section.

(b) Personal holding companies.-A personal holding company, as defined in section 542, including a foreign corporation within the definition of such section, shall attach Schedule PH, Computation of U.S. Personal Holding Company Tax, to the return required by paragraph (a) or (g), as the case may be, of this section.

(c) Insurance companies.-(1) Life insurance companies.-A life insurance company subject to tax under section 802 or 811 shall make a return on Form 1120L. There shall be filed with the return (i) a copy of the annual statement, the form of which has been approved by the National Association of Insurance Commissioners, which is filed by the company for the year covered by such return with the Insurance Departments of States, Territories, and the District of Columbia, and which shows the reserves used by the company in

computing the taxable income reported on its return, and (ii) copies of Schedule A (real estate) and Schedule D (bonds and stocks) of such annual statement.

(2) Mutual insurance companies.-A mutual insurance company (other than a life or marine insurance company and other than a fire insurance company subject to the tax imposed by section 831) or an interinsurer or reciprocal underwriter subject to tax under section 821 shall make a return on Form 1120M. See paragraph (a)(3) of § 1.821-1. There shall be filed with the return (i) a copy of the annual statement, the form of which has been approved by the National Association of Insurance Commissioners, which is filed by the company for the year covered by such return with the Insurance Departments of States, Territories, and the District of Columbia, and (ii) copies of Schedule A (real estate) and Schedule D (bonds and stocks) of such annual statement.

(3) Other insurance companies.-Every insurance company (other than a life or mutual insurance company), every mutual marine insurance company, and every mutual fire insurance company, subject to tax under section 831, and every mutual savings bank conducting a life insurance business and subject to tax under section 594, shall make a return on Form 1120. See paragraph (c) of § 1.831-1. There shall be filed with the return a copy of the annual statement, the form of which has been approved by the National Association of Insurance Commissioners, which contains the underwriting and investment exhibit for the year covered by such return.

(4) Foreign insurance companies.-The provisions of subparagraphs (1), (2), and (3) of this paragraph concerning the returns and statements of insurance companies subject to tax under section 802 or 811, section 821, and section 831, respectively, are applicable to foreign insurance companies subject to tax under such sections, except that the copy of the annual statement, the form of which has been approved by the National Association of Insurance Commissioners, required to be submitted with the return shall, in the case of a foreign insurance company, be a copy of the statement relating to the United States business of such company.

(d) Affiliated groups. For the forms to be used by affiliated corporations filing a consolidated return, see § 1.1502-12.

[NOTE: Paragraphs (e) and (f) of this section, relating to charitable and other organizations with unrelated business income and to farmers' cooperatives, respectively, have been issued as a part of Treasury Decision 6301, approved July 2, 1958 [I.R.B. 1958-30, 10].]

(g) Returns by foreign corporations.—(1) Nonresident foreign corporations. (i) In general.-A nonresident foreign corporation is not required to make a return of income if the tax liability of the corporation is fully satisfied at the source. A nonresident foreign corporation shall, however, make or have made a return on Form 1120NB with respect to that portion of its income described in § 1.881-2 upon which the tax has not been fully satisfied at the source, including such income upon which the tax is limited by tax convention.

(ii) Claim for refund.-Notwithstanding the provisions of subdivision (i) of this subparagraph, a nonresident foreign corporation

shall include on Form 1120NB its entire income described in § 1.881-2, whether or not the tax has been fully satisfied at the source upon a portion thereof, if a claim for refund of an overpayment of tax is made in accordance with section 6402 and the regulations thereunder. However, if the overpayment to be refunded consists solely of tax deemed to have been paid under section 852 (b) (3) (D), relating to undistributed capital gains of a regulated investment company, it is not necessary to include on the Form 1120NB the entire income described in § 1.881-2.

(2) Resident foreign corporations.-Every resident foreign corportation shall make or have made a return on Form 1120 of all its income described in § 1.882-1, including such income upon which the tax is limited by tax convention.

(3) Treaty income.-If the gross income of a foreign corporation includes income upon which the tax is limited by tax convention, see paragraph (f) of § 1.881-2 in the case of a nonresident foreign corporation, or paragraph (a) (7) of § 1.882-1 in the case of a resident foreign corporation.

(4) Returns by agent.-If at the time the return is filed a foreign corporation has no office or place of business within the United States. but has an agent in the United States, the return required by this paragraph shall be made by the agent. See section 882 (à).

(5) Claims for refund.-(i) Form to use.-In the case of any overpayment of income tax by a foreign corporation to which this paragraph applies, claim for refund shall be made in accordance with section 6402 and the regulations thereunder.

(ii) Tax withheld at source. If an overpayment has resulted from the withholding of tax at source under chapter 3 of the Code, statements shall be attached to the claim for refund showing the same information as is required by paragraph (b) (5) of § 1.6012-1 in the case of a claim for refund by a nonresident alien individual.

(6) Special return forms.-For provisions relating to

(i) Returns of foreign corporations which are personal holding companies as defined in section 542, see paragraph (b) of this section; (ii) Returns of foreign insurance companies subject to tax under section 802 or 811, section 821, or section 831, see paragraph (c) of this section; and

(iii) Returns with respect to the tax imposed by section 511 upon unrelated business income described in section 512, see paragraph (e) of this section.

(h) Other provisions. For returns by fiduciaries for corporations, see § 1.6012-3. For information returns by corporations contemplating dissolution or liquidation and for information returns by corporations of distributions in liquidation, see §§ 1.6043-1 and 1.6043-2, respectively. For information returns by corporations relating to corporate dividends, earnings, and profits, see § 1.6042-1. For returns as to formation or reorganization of foreign corporations, see § 1.6046-1. For information returns of officers, directors, and shareholders of foreign personal holding companies, as defined in section 552, see §§ 1.6035-1 and 1.6035-2.