Sec. 131. (i) Tax withheld at Sec. 131. (i) Tax withheld at source. For the purposes of this source. supplement the tax imposed by this chapter shall be the tax computed without regard to the credit pro vided in section 32 and section 35. Same as 1944. Taxable Years Beginning in 1946 and 1947 Sec. 131. (h) Credit for taxes in lieu of income, etc., taxes. Same as 1944. Sec. 131. (i) Tax withheld at source. Same as 1944. Supplement D-Returns and Payment of Tax [Supplementary to Subchapter B, Part V] Sec. 141. Consolidated returns. Supplement D-Returns and [Supplementary to Subtitle B, Part V] Sec. 141. Consolidated returns. Same as 1944. Sec. 141. (a) Privilege to file Sec. 141. (a) Privilege to file consolidated income and excess- consolidated income and excess profits-tax returns.-An affiliated profits tax returns. group of corporations, shall, subject to the provisions of this section, have the privilege of making consolidated income and excess-profitstax returns for the taxable year in lieu of separate returns. The making of consolidated returns shall be upon the condition that the affiliated group shall make both a con Supplement D-Returns and [Supplementary to Subtitle B, Part V] Sec. 141. Consolidated returns. Sec. 141. (a) Privilege to file consolidated income and excess profits tax returns. Same as 1944. Taxable Years Sec. 131. (h) Credit for taxes in lieu of income, etc., taxes. Same as 1944. Sec. 131. (i) Tax withheld at source. Same as 1944. Supplement D-Returns and Payment of Tax Taxable Years corporations shall be treated as Sec. 131. (g) (1) A corporation entitled to the benefits of section 251, by reason of receiving a large percentage of its gross income from sources within a possession of the United States: Sec. 131. (g) (2) A corporation organized under the China Trade Act, 1922, 42 Stat. 849 (U. S. C., Title 15, c. 4), and entitled to the credit provided for in section 262. Sec. 131. (h) Credit for taxes in lieu of income, etc., taxes.For the purposes of this section and section 23 (c) (1), the term "income, war-profits, and excessprofits taxes" shall include a tax paid in lieu of a tax upon income, war-profits, or excess profits otherwise generally imposed by any foreign country or by any possession of the United States. Sec. 131. (i) Tax withheld at source. For the purposes of this supplement the tax imposed by this chapter shall be the tax computed without regard to the credit provided in section 32 and section 466 (e) 35. Sec. 131 (1), I. R. C., supra, amended by Sec. 6 (b) (5), I. I. T. A. of 1944, by striking out "466 (e)" and inserting in lieu thereof "35." Sec. 2 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1943. Supplement D-Returns [Supplementary to Subtitle B, Part V.] [Supplementary to Subchapter B, Part V] Sec. 141. Consolidated returns. Sec. 141. (a) Privilege to file consolidated income and excess profits tax returns. Same as 1944. Sec. 141. Consolidated returns. Taxable Years Beginning before 1944 For any amendments prior to 1944, see Second Edition, p. 228, Sec. 131. (h) Credit for taxes in lieu of income, etc., taxes. Section originated 1942 as Sec. 131 (h), I. R. C.. For any amendments prior to 1944, see Ninth Edition, p. 382. Sec. 131. (i) Tax withheld at source. Section originated 1942 as Sec. 131 (i), I. R. C., and was made effective Jan. 1, 1943. For any amendments prior to 1944, see Ninth Edition, p. 384. Supplement D-Returns and [Supplementary to Subtitle B, Part V] Sec. 141. Consolidated returns. Section originated 1918 as Sec. 240 (a), R. A. of 1918. Sec. 1331, R. A. of 1921 retroactively amended R. A. of 1917 to authorize consolidated returns. Sec. 141. (a) Privilege to file Sec. 141. (a) Privilege to file consolidated income and excess-consolidated income and excess profits-tax returns.-An affiliated profits tax returns. group of corporations, shall, subject to the provisions of this section, have the privilege of making consolidated income and excessprofits-tax returns for the taxable year in lieu of separate returns. The making of consolidated returns shall be upon the condition that the affiliated group shall make For any amendments prior to 1944, see Second Edition, p. 234, Ninth Edition, p. 384. Taxable Years Beginning in 1949 solidated income-tax return and a consolidated excess-profits-tax return for the taxable year, and that all corporations which at any time during the taxable year have been members of the affiliated group making a consolidated income-tax return consent to all the consolidated income- and excess-profits tax regulations prescribed under subsection (b) prior to the last day prescribed by law for the filing of such return. The making of a consolidated income-tax return shall be considered as such consent. In the case of a corporation which is a member of the affiliated group for a fractional part of the year, the consolidated returns shall include the income of such corporation for such part of the year as it is a member of the affiliated group. In the case of a corporation which is not a member of the affiliated group after March 31, 1942, of the last taxable year of such group which begins before April 1, 1942, such corporation shall not be considered a member of the affiliated group for consolidated income-tax-return purposes for such year but shall be considered a member of such group for consolidated excess-profits-tax return purposes for such year and the consent required in the case of such corporation shall relate only to the consolidated excess-profits-tax regulations. Sec. 141. (b) Regulations.-The Commissioner, with the approval of the Secretary, shall prescribe such regulations as he may deem necessary in order that the tax liability of any affiliated group of corporations making consolidated incomeand excess-profits-tax returns and of each corporation in the group, both during and after the period of affiliation, may be returned, determined, computed, assessed, collected, and adjusted, in such manner as clearly to reflect the incomeand excess-profits-tax liability and the various factors necessary for the determination of such liability, and in order to prevent avoidance of such tax liability. Such regulations shall prescribe the amount of the net operating loss deduction of each member of the group which is attributable to a deduction allowed Taxable Years Beginning in 1945 Sec. 141. (b) Regulations. Same as 1944. Taxable Years Beginning in 1944 both a consolidated income-tax return and a consolidated excessprofits-tax return for the taxable year, and that all corporations which at any time during the taxable year have been members of the affiliated group making a consolidated income-tax return consent to all the consolidated income- and excess-profits-tax regulations prescribed under subsection (b) prior to the last day prescribed by law for the filing of such return. The making of a consolidated incometax return shall be considered as such consent. In the case of a corporation which is a member of the affiliated group for a fractional part of the year, the consolidated returns shall include the income of such corporation for such part of the year as it is a member of the affiliated group. In the case of a corporation which is not a member of the affiliated group after March 31, 1942, of the last taxable year of such group which begins before April 1, 1942, such corporation shall not be considered a member of the affiliated group for consolidated income-tax-return purposes for such year but shall be considered a member of such group for consolidated excess-profits-tax return purposes for such year, and the consent required in the case of such corporation shall relate only to the consolidated excess-profitstax regulations. Sec. 141. (b) Regulations.-The Commissioner, with the approval of the Secretary, shall prescribe such regulations as he may deem necessary in order that the tax liability of any affiliated group of corporations making consolidated incomeand excess-profits-tax returns and of each corporation in the group, both during and after the period of affiliation, may be returned, determined, computed, assessed, collected, and adjusted, in such manner as clearly to reflect the income- and excess-profits-tax liability and the various factors necessary for the determination of such liability, and in order to prevent avoidance of such tax liability. Such regulations shall prescribe the amount of the net operating loss deduction of each member of the group which is attributable to Taxable Years Beginning before 1944 Sec. 141. (b) Regulations. Section originated 1918 as Second Edition, p. 234, Taxable Years Beginning in 1949 for a taxable year beginning in 1941 on account of property considered as destroyed or seized under section 127 (relating to war losses), and the allowance of the amount so prescribed as a deduction in computing the net income of the group shall not be limited by the amount of the net income of such member. Sec. 141. (c) Computation and payment of tax.-In any case in which consolidated income-tax and excess-profits-tax returns are made or are required to be made, the taxes shall be determined, computed, assessed, collected, and adjusted in accordance with the regulations under subsection (b) prescribed prior to the last day prescribed by law for the filing of such returns; except that the tax imposed under section 15 or section 204 shall be increased by 2 per centum of the consolidated corporation surtax net income of the affiliated group of includible corporations. Only one specific exemption as provided in section 710 (b) (1) shall be allowed for the entire affiliated group of corporations for the purposes of the tax imposed by Subchapter E of Chapter 2. Sec. 141. (d) Definition of "affiliated group."-As used in this section an "affiliated group" means one or more chains of includible corporations connected through stock ownership with a common parent corporation which is an includible corporation if Sec. 141. (d) (1) Stock possesing at least 95 per centum of the voting power of all classes of stock and at least 95 per centum of each class of the nonvoting stock of each of the includible corporations (except the common parent corporation) is owned directly by one or more of the other includible corporations; and Taxable Years Beginning in 1948 Sec. 141. (c) Computation and payment of tax. Same as 1946 and 1947. Sec. 141. (d) Definition of “affiliated group." Same as 1944. Taxable Years Beginning in 1946 and 1947 Sec. 141. (c) Computation and payment of tax. -In any case in which consolidated income-tax and excess-profits-tax returns are made or are required to be made, the taxes shall be determined, computed, assessed, collected, and adjusted in accordance with the regulations under subsection (b) prescribed prior to the last day prescribed by law for the filing of such returns; except that the tax imposed under section 15 or section 204 shall be increased by 2 per centum of the consolidated corporation surtax net income of the affiliated group of includible corporations. Only one specific exemption of $10,000 as provided in section 710 (b) (1) shall be allowed for the entire affiliated group of corporations for the purposes of the tax imposed by Subchapter E of Chapter 2. Sec. 141 (c), I. R. C., supra, amended by Sec. 2 (c), T. A. A. of 1945, by striking out the words "of $10,000" and inserting in lieu thereof the word "as". Sec. 2 (d) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1945, and to taxable years beginning in 1945 and ending in 1946. Sec. 141. (d) Definition of “affiliated group." Same as 1944. |