Par. 23. Section 19.131-8 is amended by substituting for Example (2) (with respect to corporations), the following example: Example (2): The net income for the calendar year 1940 and the income and profits taxes paid or accrued to foreign countries and possessions of the United States in the case of a domestic corporation were as follows: Less: 85 percent of dividends received from domestic corporations ($50,000) _ . Interest on obligations of the United States- Normal-tax net income__ $330,000 $42, 500 25, 000 67, 500 262, 500 130, 000 Total foreign net income United States tax (not including tax imposed under section 102) before allowance of credit for foreign taxes_ 54, 862. 50 The income and losses from all foreign countries and possessions of the United States, except the dividend from sources within France, were derived from branch operations. Dividends of $50,000 were received from a French corporation, a majority of the voting stock of which was owned by the domestic corporation. The French corporation paid to France income and profits taxes on income earned by it and in addition a dividend tax for the account of its shareholders on income distributed to them, the latter tax being withheld and paid at the source. The computation of the credit is as follows: Income and profits taxes paid or accrued on branch operations___ Dividend received on December 31 of the taxable year.... French taxes applicable to accumulated profits distributed of 170,000 200,000 of $30,000 Limitation under section 131 (f) (262,500 50,000 of $54,862.50 。)----- $50, 000 200,000 30, 000 170,000 7,500 10, 450 Income and profits taxes deemed to have been paid (French taxes applicable to accumulated profits distributed to domestic corporation, reduced in accordance with the limitation under section 131 (f))....... Total income and profits taxes paid or accrued and deemed to Limitation under section 131 (b) (1) (202,500 of $54,862.50 50) 3,000 7,500 Limitation on sum of tentative credits under section 131 (b) (2) to de 19, 500 14, 630 14, 630 $6, 270 1,800 2, 400 1,250 14, 630 26, 350 27, 170 Total amount of credit allowable (sum of tentative credits or the limitation under section 131 (b) (2), whichever is the lesser) --- 26, 350 Par. 24. The following is inserted immediately preceding section 19.142–1, relating to fiduciary returns: (b) FIDUCIARY RETURNS.-Section 142 (a) of the Internal Revenue Code is amended to read as follows: (a) REQUIREMENT OF RETURN.-Every fiduciary (except a receiver appointed by authority of law in possession of part only of the property of an individual) shall make under oath a return for any of the following individuals, estates, or trusts for which he acts, stating specifically the items of gross income thereof and the deductions and credits allowed under this chapter and such other information for the purpose of carrying out the provisions of this chapter as the Commissioner with the approval of the Secretary may by regulations prescribe (1) Every individual having a gross income for the taxable year of $800 or over, if single, or if married and not living with husband or wife; (2) Every individual having a gross income for the taxable year of $2,000 or over, if married and living with husband or wife; (3) Every estate the gross income of which for the taxable year is $800 or over; (4) Every trust the net income of which for the taxable year is $100 or over, or the gross income of which for the taxable year is $800 or over, regardless of the amount of the net income; and (5) Every estate or trust of which any beneficiary is a nonresident alien. SEC. 9. TAXABLE YEARS TO WHICH APPLICABLE. ACT OF 1940, TITLE I.) (REVENUE The amendments made by this title, except the amendments made by section 5, shall be applicable only with respect to taxable years beginning after December 31, 1939. Par. 25. Section 19.142-1 is amended as follows: (A) There is stricken out immediately after "(a)” in the paragraph so designated the word "For," and there is inserted in lieu thereof the following: "For taxable years beginning before January 1, 1940– Returns for individuals.—For a taxable year beginning before January 1, 1940, for." (B) There is stricken out immediately after "(b)" in the paragraph so designated the word "For," and there is inserted in lieu thereof the following: "For taxable years beginning before January 1, 1940—Returns for estates and trusts.-For a taxable year beginning before January 1, 1940, for." (C) There is inserted immediately after the paragraph designated as "(b)" the following: (c) For taxable years beginning after December 31, 1939.-Returns for individuals. For a taxable year beginning after December 31, 1939, for the individual whose income is in his charge, if the gross income of such individual is $800 or over, if single, of if married and not living with husband or wife for any part of the taxable year; or if such individual is married and was living with husband or wife for any part of the taxable year but not at the close of the taxable year and his gross income for the taxable year is equal to, or in excess of, the credit allowed him by section 25 (b) (1) and (3) (computed without regard to his status as head of a family); or if such individual is married and was living with husband or wife for the entire taxable year and the aggregate gross income of both husband and wife is $2,000 or over; or if such individual is married and was living with husband or wife at the close of the taxable year but not during the entire taxable year and the aggregate gross income of both husband and wife is $2,000 or over, or the aggregate gross income of both husband and wife is equal to, or in excess of, the credit allowed them by section 25 (b) (1) and (3) (computed without regard to the status of either of them as head of a family), or (d) For taxable years beginning after December 31, 1939.—Returns for estates and trusts. For a taxable year beginning after December 31, 1939, for the estate for which he acts if the gross income of such estate is $800 or over, and for the trust for which he acts if the gross income of such trust is $800 or over, or the net income of such trust, as computed under section 162, is $100 or over, or if any beneficiary of such estate or trust is a nonresident alien. (D) The first and second sentences in the second from the last paragraph are changed to read as follows: "The return in case (a) or (c) shall be on Form 1040 or 1040 A. In case (b) or (d) a return is required on Form 1041." (E) The next to the last sentence in the second from the last paragraph is stricken out and there is inserted in lieu thereof the following: For a taxable year beginning before January 1, 1940, if the net income of a decedent from the beginning of the taxable year to the date of his death was equal to, or in excess of, the credit allowed him by section 25 (b) (1) and (3) (computed without regard to his status as head of a family), or if his gross income for the same period was $5,000 or over, the executor or administrator shall make a return for such decedent. For a taxable year beginning after December 31, 1939, if the gross income of the decedent from the beginning of the taxable year to the date of his death was equal to, or in excess of, the credit allowed him by section 25 (b) (1) and (3) (computed without regard to his status as head of a family), the administrator shall make a return for such decedent. Par. 26. Section 19.142-2 is amended by striking out in the first sentence "A" and inserting in lieu thereof the following: "For a taxable year beginning prior to January 1, 1940, a," and by adding after the first sentence the following: "For a taxable year beginning after December 31, 1939, such a return must be made if the gross income of such person is equal to, or in excess of, the credit allowed him by section 25 (b) (1) and (3), as so computed." Par. 27. Section 19.142-5 is amended as follows: (A) In the second sentence of paragraph (b) there is inserted immediately after "$21,600" the following: "or more than $24,000 for a taxable year beginning after December 31, 1939,". (B) In the third sentence of paragraph (b) there is inserted immediately after "$21,600 or less," the following: "or $24,000 or less for a taxable year beginning after December 31, 1939,". (C) In the next to the last sentence of paragraph (b) there is inserted immediately after "10 percent" the following: ", or at 16% percent for a taxable year beginning after December 31, 1939, and before January 1, 1945, or at 15 percent for a taxable year beginning after December 31, 1944,." Par. 28. The following is inserted immediately preceding section 19.147-1: (c) INFORMATion Returns.—Section 147 (a) of the Internal Revenue Code (relating to information at the source) is amended by striking out "$1,000" wherever occurring therein and inserting in lieu thereof “$800.” SEC. 9. TAXABLE YEARS TO WHICH APPLICABLE. OF 1940, TITLE I.) (REVENUE ACT The amendments made by this title, except the amendments made by section 5, shall be applicable only with respect to taxable years beginning after December 31, 1939. Par. 29. Section 19.147–1 is amended as follows: (A) The heading of the section is amended to read as follows: "Return of information as to payments of $1,000 for 1939, and $800 for years thereafter.—." (B) The first sentence is amended to read as follows: All persons making payment to another person of fixed or determinable income of $1,000 or more in the calendar year 1939, or of $800 or more in any subsequent year, must render a return thereof to the Commissioner for such year on or before February 15 of the following year, except as specified in sections 19.147-3 to 19.147-5, inclusive. Par. 30. Section 19.147-2 is amended by inserting immediately after the words "are made" in the first sentence the following: "during the calendar year 1939, or of $800 or over during a subsequent calendar year." Par. 31. Section 19.147-3 is amended as follows: (A) By inserting in the first sentence immediately after "over $1,000" the following: "during the calendar year 1939, or over $800 during a subsequent calendar year." (B) The part designated as "(e)" is amended to read as follows: "(e) Payments of rent made to real estate agents (but the agent must report payments to the landlord if the amount paid during the calendar year 1939 was $1,000 or more, or $800 or more during a subsequent calendar year);." (C) The part designated as "(h)" is amended to read as follows: "(h) Payments of salaries, or other compensation for personal services aggregating less than $2,500 for the calendar year 1939, or less than $2,000 for subsequent calendar years, made to a married individual (citizen or resident);. Par. 32. The first sentence of section 19.147-7 is amended by striking out "in any taxable year" and by inserting immediately after |