PREFACE TO 1950 SUPPLEMENT This 1950 Supplement includes the amendments made to the Internal Revenue Code during the year 1950, except the Excess Profits Tax Act of 1950, a copy of which is enclosed for use in connection with the Supplement. The amendments are numerous, and most of them incorporate new provisions into the Code. To facilitate the use of this Supplement, it is suggested that upon its receipt, a notation be made in the margin of the bound Tenth Edition opposite each section which has been amended or repealed. If these marginal notations are made, the reader will know which sections have been amended without constant reference to the Supplement. Attention is called to the "Erratum List" on the next page. January 15, 1951 WALTER E. BARTON Attorney at Law Investment Building ERRATUM LIST. Please make corrections of the following typographical errors in Barton's Tenth Edition: *In last sentence, after third line, insert omitted line: "shareholder of a company upon his". **In first sentence, after eighth line, insert omitted line: "mail. Within 90 days after such notice is". Sec. 101(a), RA of 1950, amended Sec. 11, IRC, to read as follows: "SEC. 11. NORMAL TAX ON INDIVIDUALS. "(a) TAXABLE YEARS BEGINNING AFTER SEPTEMBER 30, 1950.-In the case of taxable years beginning after September 30, 1950, there shall be levied, collected, and paid for each taxable year upon the net income of every individual a normal tax of 3 per centum of the amount of the net income in excess of the credits against net income provided in section 25. For alternative tax which may be elected if adjusted gross income is less than $5,000, see supplement T. "(b) TAXABLE YEARS BEGINNING BEFORE OCTOBER 1, 1950.-In the case of taxable years beginning before October 1, 1950, there shall be levied, collected, and paid for each taxable year upon the net income of every individual a normal tax determined by computing a tentative normal tax of 3 per centum of the amount of the net income in excess of the credits against net income provided in section 25, and by reducing such tentative normal tax as provided in section 12 (c). For alternative tax which may be elected if adjusted gross income is less than $5,000, see supplement T. For computation of tax in case the taxable year (other than the calendar year 1950) ends after September 30, 1950, see section 108 (e).” Sec. 104, RA of 1950, makes amendment applicable to taxable years ending after Dec. 31, 1949. But see Secs. 51(b)(3) and 131, post. SECTION 12(b) - AMENDED. Sec. 101(b)(1), RA of 1950, amended that part of Sec. 12(b), IRC, which precedes "Not over $2,000" to read as follows: (b) RATES OF SURTAX. "(1) TAXABLE YEARS BEGINNING AFTER SEPTEMBER 30, 1950.In the case of taxable years beginning after September 30, 1950, there shall be levied, collected, and paid for each taxable year upon the surtax net income of every individual the surtax shown in the following table: "If the surtax net income is: The surtax shall be:" Sec. 104, RA of 1950, makes amendment applicable to taxable years ending after Dec. 31, 1949. But see Secs. 51(b)(3) and 131, post. Sec. 101(b) (2), RA of 1950, amended Sec. 12(b), IRC, by adding at the end thereof the following new paragraph: "(2) TAXABLE YEARS BEGINNING BEFORE OCTOBER 1, 1950.-In the case of taxable years beginning before October 1, 1950, there shall be levied, collected, and paid for each taxable year upon the surtax net income of every individual a surtax determined by computing a tentative surtax under the table in paragraph (1), and by reducing such tentative surtax as provided in subsection (c) of this section." Sec. 104, RA of 1950, makes amendment applicable to taxable years ending after Dec. 31, 1949. But see Secs. 51(b)(3) and 131, post. Sec. 101(b)(3), RA of 1950, amended Sec. 12(c); IRC, to read as follows: "(c) REDUCTION OF TENTATIVE NORMAL TAX And Tentative SUR TAX. "(1) CALENDAR YEAR 1950.-In the case of a taxable year beginning on January 1, 1950, and ending on December 31, 1950, the combined normal tax and surtax under section 11 and subsection (b) of this section shall be the aggregate of the tentative normal tax and tentative surtax, reduced as follows: "If the aggregate is: Not over $400____ Over $400 but not over $100,000‒‒‒‒ The reduction shall be: 13% of the aggregate. $9,016 plus 7.3% of excess over $100,000. In no event shall the combined normal tax and surtax for such taxable year exceed 80 per centum of the net income. "(2) OTHER TAXABLE YEARS BEGINNING BEFORE OCTOBER 1, 1950. In the case of taxable years (other than the calendar year 1950, to which paragraph (1) applies) beginning before October 1, 1950, the combined normal tax and surtax under section 11 and subsection (b) of this section shall be the aggregate of the tentative normal tax and tentative surtax, reduced as follows: "If the aggregate is: Not over $400___. Over $400 but not over $100,000___ The reduction shall be: 17% of the aggregate. $68 plus 12% of excess over $400. $12,020 plus 9.75% of excess over $100,000. |