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partment requires a return, although neither may have an income of $2,000.4

AGENTS. When a return is made by any person acting as agent for the taxpayer, the agent assumes the responsibility of making the return and incurs the penalties provided for erroneous, false or fraudulent returns.5 When the required return has not been made by such agent notice of failure to make the return will be served upon him, and in answer thereto he will be permitted to file evidence with the collector showing that the individual for whom he acts did not receive an income subject to tax during the year, or that the agent filed the return with some other collector. One who acts as agent does not, however, assume any fiduciary relationship within the meaning of the income tax law and, unless otherwise provided, the principal and not the agent is subject to the liability under the law.?

Where Filed. The law permits the filing of the return by an individual in the district in which such individual has his legal residence or principal place of business, or, if he has no legal residence or place of business in the United States, then with the Collector of Internal Revenue at Baltimore, Maryland. Although the law permits the return to be filed in either one of the two districts indicated above, the Treasury Department desires for administrative purposes that the return be filed in the district in which the individual resides.9 Corporations are required to file their returns with the collector of the district in which is located the principal office of the corporation, where are kept its books of account and other data from which the return is prepared, or, in the case of foreign corporations, with the collector of the district in which is located the principal place of business in the United States, or if they have no principal place of business, office, or agency in the United States, with the Collector of Internal Revenue at Baltimore, Maryland.10

4 This statement is based upon the ruling contained in Regulations 33, Art. 10, which held under the 1913 Law that if either husband or wife had an income of $3,000 a return should be filed although the aggregate incomes of both might not be $4,000 and if the aggregate income of both was over $4,000 a return should be filed although the individual income of either one might not amount to $3,000.

5 Act of September 8, 1916, $ 8 (b).
6 Reg. 33, Art. 18.
7 T. D. 2137.
8 Act of September 8, 1916, $ 8 (a).

When Filed. March 1st is the primary due date for all returns of annual net income. This due date can be changed by a corporation designating a fiscal year, in which case the sixtieth day after the close of the fiscal year becomes the primary due date on or before which its return should be filed. Unless an extension of time is obtained, the taxpayer will be held delinquent if his return is not filed on or before the primary date and will be subject to the 50% additional tax and penalty of the law.11

9 Letter from Treasury Department dated December 17, 1914. The Treasury Department recognizes that the individual has the right to choose one of two districts, where he resides in one and does business in another, and a filing in either district will be a proper compliance with the law. For the year 1913

the Treasury Department requested the filing of returns in the district in which the individual's principal place of business was located. This threw an undue burden on the collectors in the large cities, and the subsequent ruling was made in order to remedy this condition.

10 Act of September 8, 1916, § 13 (b). As stated in the cha ter on corporations the principal office here referred to is the business office, not the statutory office in the state in which the corporation is incorporated. The return may be filed from the latter office only when a domestic corporation has no other office or place of business in this country.

F.I. Tax.-25

LAST DUE DATE. These words are used to designate the last day upon which a return may be filed without penalty.1

12

When the due date for a return falls on a Sunday or a legal holiday, the last due date will be held to be the day next following, and the return may be filed not later than such following day without penalty.13

MAILING RETURNS. If a return is made and placed in the United States mails, properly addressed, and postage paid, in ample time, in the due course of the mails, to reach the office of the collector or deputy collector, on or before the last due date, no penalty is held to attach should the return not be aetually received until a subsequent date. 14

Extension of Time by Collectors. Collectors, being satisfied as to the merits of the claim, and in the reasonable exercise of their judgment and discretion, have authority to grant an extension of time not to exceed thirty days in the case of “sickness or absence." 15 In the case of corporations, the sickness or absence must be of an officer whose signature to the return is required. 16

11 T. D. 2001. 12 Reg. 33, Art. 175. 13 Reg. 33, Art. 176. 14 Reg. 33, Art. 174. 15 R. S. § 3176; Reg. 33, Art. 17; T. D. 1950.

Extension of Time by Commissioner. In addition to the limited extension of thirty days, which may be granted by collectors, the Commissioner of Internal Revenue has authority to grant a reasonable extension of time in meritorious cases for filing returns of income by persons, residing or traveling abroad, who are unable to file the returns on or before March 1st.17 The Commissioner of Internal Revenue also has authority in the case of either corporations or individuals to grant a reasonable extension of time in meritorious cases, as he may

for

any reason whatever. 18

deem proper,

Application for Extension of Time. A written application for an extension of time should be made by the individual to the collector or the Commissioner within the period for which the extension is desired. 19 The application need not be made prior to the primary due date, but may be made at any time within the period for which extension is desired, not to exceed thirty days after the primary due date when application is made to collectors. 20

TENTATIVE RETURNS. Prior to the passage of the 1916 Law, extension of time could be granted only in case of sickness or absence, but the Treasury Department permitted foreign corporations, and domestic corporations doing business in foreign countries, who were unable to assemble their data in time to make their returns of annual net income on or before the primary due date, to file tentative returns approximating as nearly as possible the actual business transacted during the year. Such tentative returns, were accepted subject to the substitution later of true and correct returns, when the necessary data to make the same had been received.21 Under the 1916 Law, the Commissioner of Internal Revenue has authority to grant unlimited extension in meritorious cases, thus making unnecessary the filing of tentative returns.22

16 Reg. 33, Art. 173. 17 Act of September 8, 1916, $ 8 (b). 18 Act of September 8, 1916, § 14 (c). 19 Reg. 33, Art. 23. 20 Reg. 33, Art. 173,

Forms. The law authorizes the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, to prescribe the form on which the returns shall be made. The forms have been changed from time to time, and those for 1917 will contain much new matter. The same form is prescribed for citizens, residents, and non-resident aliens, whether or not executed by the principal or by an agent on his behalf. Separate forms are prepared for use by fiduciaries, and corporations. The form for use by individuals is known as Form 1040. The form for use by fiduciaries is known as Form 1041. The forms for use by corporations are: Form 1030 for insurance companies (including mutual life and mutual marine;) Form 1030a for mutual insurance companies (other than mutual life and mutual marine ;) Form 1090 for railroad corporations, and Form 1031 for all other corporations. Forms are usually sent to taxpayers, but failure to receive a form is no excuse for not making the return.23

21 T. D. 2137. 22 See T. D. 2561 and T. D. 2581, 23 Reg. 33, Art. 163,

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