Pawnbrokers, $200 a year or fraction thereof: Provided, That manufacturers and dealers in guns with combination shotgun and rifle barrels, 12 inches or more but less than 18 inches in length, from which only a single discharge can be made from either barrel without manual reloading, and manufacturers and dealers in guns classified as "any other weapon" under section 5848(5), shall pay the following taxes: Manufacturers, $25 a year or fraction thereof; dealers, $10 a year or fraction thereof. (b) Cross reference. For license to transport, ship, or receive firearms or ammunition under the Federal Firearms Act, see section 3 of the Act of June 30, 1938 (52 Stat. 1251; 15 U.S.C. 903). (As amended June 1, 1960, Pub. L. 86-478, § 1, 74 Stat. 149.) AMENDMENTS 1960 Subsec. (a). Pub. L. 86-478 inserted words "or fraction thereof" in clauses (1), (2), and (3) and following "$25 a year" in the proviso, and substituted "and manufacturers and dealers in guns classified as 'any other weapon' under section 5848(5)" for "guns designed to be held in one hand when fired and having a barrel 12 inches or more but less than 18 inches in length, from which only a single discharge can be made without manual reloading, or guns of both types", and "$10 a year or fraction thereof" for "$1 a year or any part thereof." Subsec. (b). Pub. L. 86-478 redesignated former subsec. (c) as (b) and eliminated former subsec. (b) which authorized proportionate computation of the tax. EFFECTIVE DATE OF 1960 AMENDMENT Section 5 of Pub. L. 86-478 provided that: "The amendments made by this Act [to this section and sections 5685(a), (b), 5811(a), (b) and 5848(1) of this title] shall take effect on the first day of the first month which begins more than 10 days after the date of the enactment of this Act [June 1, 1960] and, for purposes of the rate of the special tax imposed by section 5801 of the Internal Revenue Code of 1954, shall apply with respect to periods beginning after June 30, 1960." PART II.-TRANSFER TAX transfer tax on any gun with combination shotgun and rifle barrels, 12 inches or more but less than 18 inches in length, from which only a single discharge can be made from either barrel without manual reloading, and on any gun classified as "any other weapon" under section 5848 (5), shall be at the rate of $5. The tax imposed by this section shall be in addition to any import duty imposed on such firearm. (b) By whom paid. Such tax shall be paid by the transferor: Provided, That if a firearm is transferred without payment of such tax the transferor and transferee shall become jointly and severally liable for such tax. (As amended June 1, 1960, Pub. L. 86-478, § 2, 74 Stat. 149.) AMENDMENTS 1960 Subsec. (a). Pub. L. 86-478 substituted "and on any gun classified as 'any other weapon' under section 5848(5), shall be at the rate of $5" for "or any gun designed to be held in one hand when fired and having a barrel 12 inches or more but less than 18 inches in length from which only a single discharge can be made without manual reloading, shall be at the rate of $1." Subsec. (b). Pub. L. 86-478 added proviso making transferor and transferee jointly and severally liable for the tax if a firearm is transferred without payment of the tax. EFFECTIVE DATE OF 1960 AMENDMENT Amendment of section by Pub. L. 86-478 effective on the first day of the first month which begins more than 10 days after June 1, 1960, and, for purposes of the rate of the special tax imposed by section 5801 of this title, shall apply with respect to periods beginning after June 30, 1960, see section 5 of Pub. L. 86-478, set out as a note under section 5801 of this title. Subchapter B.-General Provisions § 5848. Definitions. For purposes of this chapter (1) Firearm. The term "firearm" means a shotgun having a barrel or barrels of less than 18 inches in length. or a rifle having a barrel or barrels of less than 16 inches in length, or any weapon made from a rifle or shotgun (whether by alteration, modification, or otherwise) if such weapon as modified has an overall length of less than 26 inches, or any other weapon, except a pistol or revolver, from which a shot is discharged by an explosive if such weapon is capable of being concealed on the person, or a machine gun, and includes a muffler or silencer for any firearm whether or not such firearm is included within the foregoing definition. (As amended June 1, 1960, Pub. L. 86-478, § 3, 74 Stat. 149.) AMENDMENTS 1960-Pub. L. 86-478 included within the definition of "firearm" in par. (1), any weapon made from a rifle or shotgun (whether by alteration, modification, or otherwise) if such weapon as modified has an overall length of less than 26 inches, and excluded rifles having barrels between 16 and 18 inches in length. EFFECTIVE DATE OF 1960 AMENDMENT Amendment of section by Pub. L. 86-478 effective on the first day of the first month which begins more than 10 days after June 1, 1960, and, for purposes of the rate of the special tax imposed by section 5801 of this title, shall apply with respect to periods beginning after June 30, 1960, see section 5 of Pub. L. 86-478, set out as a note under section 5801 of this title. Subtitle F.-Procedure and Administration Chapter 61.-INFORMATION AND RETURNS PART II.-TAX RETURNS OR STATEMENTS § 6015. Declaration of estimated income tax by individuals. (a) Requirement of declaration. Every individual (other than a nonresident alien with respect to whose wages, as defined in section 3401(a), withholding under chapter 24 is not made applicable, but including every alien individual who is a resident of Puerto Rico during the entire taxable year) shall make a declaration of his estimated tax for the taxable year if— (1) the gross income for the taxable year can reasonably be expected to exceed (A) $5,000, in the case of (1) a single individual other than a head of a household (as defined in section 1(b) (2)) or a surviving spouse (as defined in section 2 (b)); (ii) a married individual not entitled under subsection (b) to file a joint declaration with his spouse; or (iii) a married individual entitled under subsection (b) to file a joint declaration with his spouse, but only if the aggregate gross income of such individual and his spouse for the taxable year can reasonably be expected to exceed $10,000; or (B) $10,000, in the case of— (i) a head of a household (as defined in section 1(b) (2)); or (ii) a surviving spouse (as defined in section 2(b)); or (2) the gross income can reasonably be expected to include more than $200 from sources other than wages (as defined in section 3401(a)). Notwithstanding the provisions of this subsection, no declaration is required if the estimated tax (as defined in subsection (c)) can reasonably be expected to be less than $40. (f) Return as declaraton or amendment. If on or before January 31 (or February 15, in the case of an individual referred to in section 6073 (b), relating to income from farming or fishing) of the succeeding taxable year the taxpayer files a return, for the taxable year for which the declaration is required, and pays in full the amount computed on the return as payable, then, under regulations prescribed by the Secretary or his delegate (As amended Sept. 14, 1960, Pub. L. 86-779, § 5(a), 74 Stat. 1000; Sept. 25, 1962, Pub. L. 87-682, § 1(a) (1), 76 Stat. 575.) AMENDMENTS 1962 Subsec. (f). Pub. L. 87-682 inserted "or fishing" following "from farming." 1960 Subsec. (a). Pub. L. 86-779 provided that no declaration is to be required if the estimated tax can reasonably be expected to be less than $40, eliminated the gross income test of $400 plus $600 times the number of exemptions, and increased from $100 to $200 the minimum gross income which can reasonably be expected to be received from sources other than wages without becoming liable to file a declaration. EFFECTIVE DATE OF 1962 AMENDMENT Section 2 of Pub. L. 87-682 provided that: "The amendments made by the first section of this Act [to this section, and sections 6073, 6153 and 6654 of this title] shall apply only with respect to taxable years beginning after December 31, 1962." EFFECTIVE DATE OF 1960 AMENDMENT Section 5(b) of Pub. L. 86-779 provided that: "The amendment made by subsection (a) [to subsec. (a) of this section] shall apply with respect to taxable years beginning after December 31, 1960." PART III.-INFORMATION RETURNS SUBPART A.-INFORMATION CONCERNING PERSONS SUBJECT TO SPECIAL PROVISIONS Sec. 6038. Information with respect to certain foreign corporations. 6039. Cross references. AMENDMENTS 1960-Pub. L. 86–780, § 6(b)(1), Sept. 14, 1960, 74 Stat. 1015, added item 6038, and redesignated former item 6038 as 6039. § 6038. Information with respect to certain foreign corporations. (a) Requirement. (1) In general. Every United States person shall furnish, with respect to any foreign corporation which such person controls (within the meaning of subsection (d) (1)), such information as the Secretary or his delegate may prescribe by regulations relating to (A) the name, the principal place of business, and the nature of business of such foreign corporation, and the country under whose laws incorporated; (B) the accumulated profits (as defined in section 902(c)) of such foreign corporation, inIcluding the items of income (whether or not included in gross income under chapter 1), deductions (whether or not allowed in computing taxable income under chapter 1), and any other items taken into account in computing such accumulated profits; (C) a balance sheet for such foreign corporation listing assets, liabilities, and capital; (D) transactions between such foreign corporation and— (i) such person, (ii) any other corporation which such person controls, and (iii) any United States person owning, at the time the transaction takes place, 10 percent or more of the value of any class of stock outstanding of such foreign corporation; and (E) a description of the various classes of stock outstanding, and a list showing the name and address of, and number of shares held by, each United States person who is a shareholder of record owning at any time during the annual accounting period 5 percent or more in value of any class of stock outstanding of such foreign corporation. The Secretary or his delegate may also require the furnishing of any other information which is similar or related in nature to that specified in the preceding sentence. (2) Period for which information is to be furnished, etc. The information required under paragraph (1) shall be furnished for the annual accounting period of the foreign corporation ending with or within the United States person's taxable year. The information so required shall be furnished at such time and in such manner as the Secretary or his delegate shall by regulations prescribe. (3) Limitation. No information shall be required to be furnished under this subsection with respect to any foreign corporation for any annual accounting period unless such information was required to be furnished under regulations in effect on the first day of such annual accounting period. (b) Effect of failure to furnish information. (1) In general. If a United States person fails to furnish, within the time prescribed under paragraph (2) of subsection (a), any information with respect to any foreign corporation required under paragraph (1) of subsection (a), then (A) in applying section 901 (relating to taxes of foreign countries and possessions of the United States) to such United States person for the taxable year, the amount of taxes (other than taxes reduced under subparagraph (B)) paid or deemed paid (other than those deemed paid under section 904 (d)) to any foreign country or possession of the United States for the taxable year shall be reduced by 10 percent, and (B) in applying sections 902 (relating to foreign tax credit for corporate stockholder in foreign corporation) and 960 (relating to special rules for foreign tax credit) to any such United States person which is a corporation (or to any person who acquires from any other person any portion of the interest of such other person in any such foreign corporation, but only to the extent of such portion) for any taxable year, the amount of taxes pair or deemed paid by each foreign corporation with respect to which such person is required to furnish information during the annual accounting period or periods with respect to which such information is required under paragraph (2) of subsection (a) shall be reduced by 10 percent. If such failure continues 90 days or more after notice by the Secretary or his delegate to the United States person, then the amount of the reduction under this paragraph shall be 10 percent plus an additional 5 percent for each 3month period, or fraction thereof, during which such failure to furnish information continues after the expiration of such 90-day period. (2) Limitation. The amount of the reduction under paragraph (1) for each failure to furnish information with respect to a foreign corporation required under subsection (a) (1) shall not exceed whichever of the following amounts is the greater: (A) $10,000, or (B) the income of the foreign corporation for its annual accounting period with respect to which the failure occurs. (3) Special rules. (A) No taxes shall be reduced under this subsection more than once for the same failure. (B) For purposes of this subsection, the time prescribed under paragraph (2) of subsection (a) to furnish information (and the beginning of the 90-day period after notice by the Secretary) shall be treated as being not earlier than the last day on which (as shown to the satisfaction of the Secretary or his delegate) reasonable cause existed for failure to furnish such information. (C) In applying subsections (a) and (b) of section 902, and in applying subsection (a) of section 960, the reduction provided by this subsection shall not apply for purposes of determining the amount of accumulated profits in excess of income, war profits, and excess profits taxes. (c) Two or more persons required to furnish information with respect to same foreign corporation. Where, but for this subsection, two or more United States persons would be required to furnish information under subsection (a) with respect to the same foreign corporation for the same period, the Secretary or his delegate may by regulations provide that such information shall be required only from one person. To the extent practicable, the determination of which person shall furnish the information shall be made on the basis of actual ownership of stock. (d) Definitions. For purposes of this section(1) Control. A person is in control of a corporation if such person owns stock possessing more than 50 percent of the total combined voting power of all classes of stock entitled to vote, or more than 50 percent of the total value of shares of all classes of stock, of a corporation. If a person is in control (within the meaning of the preceding sentence) of a corporation which in turn owns more than 50 percent of the total combined voting power of all classes of stock entitled to vote of another corporation, or owns more than 50 percent of the total value of the shares of all classes of stock of another corporation, then such person shall be treated as in control of such other corporation. For purposes of this paragraph, the rules prescribed by section 318(a) for determining ownership of stock shall apply; except that (A) the second sentence of subparagraphs (A) and (B), and clause (ii) of subparagraph (C), of section 318 (a) (2) shall not be applied so as to consider a United States person as owning stock which is owned by a person who is not a United States person, and (B) in applying clause (i) of subparagraph (C) of section 318(a) (2), the phrase "10 percent" shall be substituted for the phrase "50 percent" used in subparagraph (C). (2) Annual accounting period. The annual accounting period of a foreign corporation is the annual period on the basis of which such corporation regularly computes its income in keeping its books. (e) Cross references. (1) For provisions relating to penalties for violations of this section, see section 7203. (2) For definition of the term "United States person", see section 7701(a) (30). (Added Pub. L. 86-780, § 6(a), Sept. 14, 1960, 74 Stat. 1014, amended Pub. L. 87-834, § 20(a), Oct. 16, 1962, 76 Stat. 1059.) AMENDMENTS 1962-Subsec. (a)(1). Pub. L. 87-834, among other changes, substituted in the opening provisions "Every United States person shall furnish" for "A domestic corporation shall furnish", in subpar. (D) (i) "such person" for "any foreign corporation controlled by the domestic corporation", in subpar. (D) (ii) “any other corporation which such person controls" for "any foreign subsidiary of a foreign corporation controlled by the domestic corporation", in subpar. (D) (iii) "any United States person owning, at the time the transaction takes place, 10 percent or more of the value of any class of stock outstanding of such foreign corporation" for "the domestic corporation or any shareholder of the domestic corporation owning at the time the transaction takes place 10 percent or more of the value of any class of stock outstanding of the domestic corporation”, and in subpar. (E) "each United States person who is a shareholder" for "each citizen or resident of the United States and each domestic corporation who is a shareholder", and eliminated provisions throughout the subsection which related to foreign subsidiaries. Subsec. (a)(2). Pub. L. 87-834 substituted provisions requiring the information to be furnished for the annual accounting period ending with or within the United States person's taxable year for provisions which required such information to be furnished for the annual accounting period ending with or within the domestic corporation's taxable year, and eliminated provisions which related to the furnishing of information in the case of foreign subsidiaries. Subsec. (a) (3). Pub. L. 87-834 eliminated provisions which related to foreign subsidiaries. Subsec. (b). Pub. L. 87-834, among other changes, substituted "If a United States person fails to furnish' for "If a domestic corporation fails to furnish" in the opening provisions, inserted provisions relating to reduction of taxes in applying sections 901 and 960 of this title, to the maximum amount of reduction under par. (1) for each failure to furnish information with respect to a foreign corporation required under subsec. (a)(1), and making the reduction provided by subsec. (b) inapplicable, in applying subsecs. (a) and (b) of section 902 and subsec. (a) of section 960, for purposes of determining the amount of accumulated profits in excess of income, war profits, and excess profits taxes, and eliminated provisions which related to the furnishing of information with respect to foreign subsidiaries. Subsec. (c). Pub. L. 87-834 substituted provisions empowering the Secretary to provide for the furnishing of information by only one person where two or more persons would be required to furnish information under subsec. (a) with respect to the same foreign corporation for the same period for provisions which required a domestic corporation if at any time during its taxable year owned more than 50 percent of the voting stock of a foreign corporation to be deemed to be in control of such foreign corporation, and in the case of a foreign corporation if at any time during its annual accounting period owned more than 50 percent of the voting stock of another foreign corporation, that such other corporation shall be considered a foreign subsidiary of the corporation owning such stock. The provisions relating to control are now contained in subsec. (d) of this section. Subsec. (d). Pub. L. 87-884 added par. (1) which was formerly covered in part by subsec. (c) of this section, designated existing provisions as par. (2), and eliminated from par. (2) provisions which related to the annual accounting period of a foreign subsidiary. Subsec. (e). Pub. L. 87-834 designated existing provisions as par. (1) and added par. (2). EFFECTIVE DATE OF 1962 AMENDMENT Section 20 (e) (1) of Pub. L. 87-834 provided that: "The amendments made by subsection (a) [enacting this section] shall apply with respect to annual accounting periods of foreign corporations beginning after December 31, 1962." EFFECTIVE DATE Section 6(c) of Pub. L. 86-780 provided that: "The amendments made by subsection (a) [amending this this section and section 902 (e) of this title] shall apply to taxable years of domestic corporations beginning after December 31, 1960, with respect to information relating to a foreign corporation or a foreign subsidiary described in section 6038(a) of the Internal Revenue Code of 1954 (as added by subsection (a)) [this section] for its annual accounting periods beginning after December 31, 1960." § 6039. Cross references. Pub. L. 86-780, § 6(a), Sept. 14, 1960, 74 Stat. 1014, redesignated former section 6038 as 6039. SUBPART B.-INFORMATION CONCERNING TRANSACTIONS WITH OTHER PERSONS Sec. 6042. 6044. 6046. 6047. 6048. 6049. Returns regarding payments of dividends and corporate earnings and profits. Returns regarding payments of patronage dividends. Returns as to organization or reorganization of foreign corporations and as to acquisitions of their stock. Information relating to certain trusts and annuity and bond purchase plans. Returns as to creation of or transfers to certain Returns regarding payments of interest. 1962-Pub. 87-834, §§ 7(1) (2), 19(g) (1), 20(d) (2), Oct. 16, 1962, 76 Stat. 989, 1058, 1063, substituted "payments of dividends and corporate earnings and profits" for "corporate dividends, earnings and profits" in item 6042, and "organization or reorganization of foreign corporations and as to acquisitions of their stock" for "creation or organization, or reorganization, of foreign corporations" in item 6046, inserted words "payments of" in item 6044, and added items 6048 and 6049. Pub. L. 87-792, § 7(m) (2), Oct. 10, 1962, 76 Stat. 831, added item 6047. 1960-Pub. L. 86-780, § 7(b), Sept. 14, 1960, 74 Stat. 1016, substituted "Returns as to creation or organization, or reorganization, of foreign corporations" for "Returns as to formation or reorganization of foreign corporations," in item 6046. § 6041. Information at source. (a) Payments of $600 or more. All persons engaged in a trade or business and making payment in the course of such trade or business to another person, of rent, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, or other fixed or determinable gains, profits, and income (other than payments to which section 6042(a) (1), 6044 (a) (1), or 6049(a) (1) applies, and other than payments with respect to which a statement is required under the authority of section 6042(a) (2), 6044(a) (2), 6045, 6049 (a) (2), or 6049 (a) (3)), of $600 or more in any taxable year, or, in the case of such payments made by the United States, the officers or employees of the United States having information as to such payments and required to make returns in regard thereto by the regulations hereinafter provided for, shall render a true and accurate return to the Secretary or his delegate, under such regulations and in such form and manner and to such extent as may be prescribed by the Secretary or his delegate, setting forth the amount of such gains, profits, and income, and the name and address of the recipient of such payment. (c) Repealed. Pub. L. 87-834, § 19(f)(2), Oct. 16, 1962, 76 Stat. 1058. (As amended Oct. 16, 1962, Pub L. 87-834, § 19 (f), 76 Stat. 1058.) EFFECTIVE DATE OF 1962 AMENDMENT 1962 Subsec. (a). Pub. L. 87-834, § 19 (f) (1), substituted "(other than payments to which section 6042(a) (1), 6044(a)(1), or 6049 (a) (1) applies, and other than payments with respect to which a statement is required under the authority of section 6042(a)(2), 6044(a)(2), 6045, 6049(a)(2), or 6049 (a) (3))" for "other than payments described in section 6042(1) or section 6045)." Subsec. (c). Pub. L. 87-834, § 19 (f) (2), repealed former (c) which related to returns of payments of interest by corporations. EFFECTIVE DATE OF 1962 AMENDMENT Amendment of subsec. (a) of this section and repeal of subsec. (c) of this section by Pub. L. 87-834 applicable to payments of dividends and interest made on or after Jan. 1, 1963, and to payments of amounts described in section 6044(b) of this title made on or after Jan. 1, 1963. with respect to patronage occurring on or after the first day of the first taxable year of the cooperative beginning on or after Jan. 1, 1963, see section 19(h) of Pub. L. 87834, set out as a note under section 6042 of this title. § 6042. Returns regarding payments of dividends and corporate earnings and profits. (a) Requirement of reporting. (1) In general. Every person (A) who makes payments of dividends aggregating $10 or more to any other person during any calendar year, or (B) who receives payments of dividends as a nominee and who makes payments aggregating $10 or more during any calendar year to any other person with respect to the dividends so received, shall make a return according to the forms or regulations prescribed by the Secretary or his delegate, setting forth the aggregate amount of such payments and the name and address of the person to whom paid. (2) Returns required by the secretary. Every person who makes payments of dividends aggregating less than $10 to any other person during any calendar year shall, when required by the Secretary or his delegate, make a return setting forth the aggregate amount of such payments, and the name and address of the person to whom paid. (b) Dividend defined. (1) General rule. For purposes of this section, the term "dividend" means (A) any distribution by a corporation which is a dividend (as defined in section 316); and (B) any payment made by a stockbroker to any person as a substitute for a dividend (as so defined). (2) Exceptions. For purposes of this section, the term “dividend" does not include (A) to the extent provided in regulations prescribed by the Secretary or his delegate, any distribution or payment (i) by a foreign corporation, or (ii) to a foreign corporation, a nonresident alien, or a partnership not engaged in trade or business in the United States and composed in whole or in part of nonresident aliens; and (B) any amount described in section 1373 (relating to undistributed taxable income of electing small business corporations). (3) Special rule. If the person making any payment described in subsection (a) (1) (A) or (B) is unable to determine the portion of such payment which is a dividend or is paid with respect to a dividend, he shall, for purposes of subsection (a) (1), treat the entire amount of such payment as a dividend or as an amount paid with respect to a dividend. (c) Statements to be furnished to persons with respect to whom information is furnished. Every person making a return under subsection (a) (1) shall furnish to each person whose name is set forth in such return a written statement showing (1) the name and address of the person making such return, and (2) the aggregate amount of payments to the person as shown on such return. The written statement required under the preceding sentence shall be furnished to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) (1) was made. No statement shall be required to be furnished to any person under this subsection if the aggregate amount of payments to such person as shown on the return made under subsection (a) (1) is less than $10. (d) Statements to be furnished by corporations to Secretary. Every corporation shall, when required by the Secretary or his delegate (1) furnish to the Secretary or his delegate a statement stating the name and address of each shareholder, and the number of shares owned by each shareholder; (2) furnish to the Secretary or his delegate a statement of such facts as will enable him to determine the portion of the earnings and profits of the corporation (including gains, profits, and income not taxed) accumulated during such periods as the Secretary or his delegate may specify, |