Assessment insurance companies, provisions regarding Authority of collector of internal revenue: To grant extension of time for making returns To make or revise returns. Banks, interest paid by, on deposits, deductible from their net income: Foreign banks Bequests to individuals exempt from tax.. Citizens or residents Nonresident aliens .... Bonds and stocks, foreign, payments of interest or dividends to be dis- 104 107 149 ..... 116 ..... Bonds containing tax-free covenant, withholding applies to interest ac- Bonds, mortgages and deeds of trust, all interest payments on must be 149 Bookkeeping, no prescribed method of: Individuals .... ... Corporations: ... ... Foreign Citizens or residents .... 133 Books, authority of collector to inspect 142 Brokers, information by, as to customers and their profits and losses.... 147 ... .... PAGE 131 Authority to inspect books Authority to make returns Authority to revise returns Commissioner of Internal Revenue assesses income taxes .... Authority to grant extension of time for filing returns, in case of sick- ness or absence from income tax Organizations and associations exempted. 142 142 142 127 130 102 Conditional and other exemptions: Income accruing to political subdivisions of the United States exempted 125 129 Charitable contributions of citizens or residents are deductible from net income 104 109 Child, dependent, $200 allowance for 140 Collection of foreign interest and dividend payments, license required for 117 127 130 125 128 103 105 142 142 142 142 142 124 Corporations: Credits allowed to income: Dividends from other corporations, for war income tax. Expenses Interest paid on indebtedness, a proportion of. Taxes Exempt from income tax Fiscal year, corporations may fix their own ..... .... Deductions allowed to income Withholding tax at source on income From dividends From interest on bonds .... Income defined Information as to dividends paid, and recipients thereof... Rate of supplementary war income tax on corporations 4 per cent.. Individuals, citizens or residents: Divid nds, for normal taxes only PAGE 124 125, 128 126, 130 127, 130 120 Basis on which levied 121 Profits actually invested exempt 121 Profits declared to be invested, but not actually, taxed 15 per cent.. 121 121 Withholding at source on foreign corporations. On income from interest on bonds Courts, U. S. district, jurisdiction conferred on. 127 125, 128 122 131 Income on which tax has been withheld War profits taxes assessed for same taxable year. Individuals, nonresident alien Credits and deductions allowed only in case a return of all income Deductions from income allowed to: Corporations, domestic: 120 149 War profits taxes, amount of, assessed by United States for same tax- Corporations: Dividends received from other corporations, for supplementary war 120 105 105 149 107 108 149 128 133 134 133 119 147 119 118 .... Date Act is effective..... ... 152 Debts, interest on: Corporations, a proportion of interest paid is deductible from in- come Individuals, deductible from income.. 126, 130 Debts, worthless, are deductible from income of individuals.. 133 134 133 145 125 Interest paid on indebtedness, a proportion of.. Interest on debts. Losses in trade. Losses, other Worthless debts Definitions: Worthless debts Individuals, nonresident alien: Business expenses Exhaustion of mines and wells. .... .... "State" "United States" ... ... "Dividends" "Income" of corporations "Income" of individuals .... Deductions and credits of section 6 allowed to nonresident aliens only Deeds of trust, all payments of interest on must be disclosed... ..... Depreciation deductible from net income: Corporations Individuals .... .... Districts, collection, inspection of Dividends: Deemed to be paid out of income of taxable year Payments, corporations must furnish information regarding. Stock dividends are defined as income.... .... May be credited to income of corporations for supplementary war in- come tax only May be credited to income of individuals for normal tax only. 127 125 128 128 130 130 130 128 131 103 104 104 104 103 103 104 103 104 105 107 107 106 106 106 106 107 108 149 150 119 100 139 139 125, 128 104, 107 140 150 150 120 105 113 147 149 150 Effective, date Act becomes ..... Estates and trusts, income of is taxable Gifts and bequests ..... ..... ..... Interest on government obligations Salaries of certain public officers and employees 109 .... Filing of returns: When Where Corporations Individuals Expenses of business, deductible from net income: Corporations Individuals By whom signed... ... Where For individuals Extension of time for... ... .... ..... Failure to make returns or supply information, penalty for............. ... Gifts and bequests exempted from tax on individuals Guardians and trustees: ..... 125, 128 103, 105 .... Improvements and betterments, no deduction from income allowed for: 102 102 102 102 109 109 Fiscal year: Corporation may fix its own. Partnership may fix its own. Fixed and determinable payments in excess of $800 must be disclosed by 148 Foreign governments, income of, exempted from tax.. Foreign interest and dividend payments, collectors of must have license.. 117 ..115, 138 102 .... 144 132 132 143 132 132 132 110 110 111 110 110 Income, credits to For corporations ....... Income shall be credited with excess profits taxes assessed for same taxable year 131 112 109 125, 129 .104, 107 ...120 149 Dividends from other corporations, for supplementary war income ............... ..... 120 105 105 .. Dividends for normal tax only.. 105 ..... 149 Income shall be credited with excess profits tax assessed for same ... Dividends for normal tax only. Income tax has been withheld. Depreciation Exhaustion of mines and wells. Interest on debts..... Losses in trade. Losses, other Taxes ... Income exempted from tax: Interest of obligations of political subdivisions of United States.. Income undistributed for purpose of tax evasion is taxable... Credits allowed to income of.... War profits taxes assessed for same taxable year. Business expenses Charitable contributions ... • Personal exemption of $4,000 for normal tax of 2%. Exemption of $200 for each dependent child............. Personal exemption of $2,000 from supplementary war income tax ... 104 103 103 104 103 Worthless debts 104 Exemption, specific personal, allowed to citizens or residents only 108 100 Married persons: $1,000 and $2,000.. Supplementary war surtax rates on income in excess of $5,000 ... ... Normal tax of 2 per cent. on income in excess of $3,000 and $4,000.. ..... .... PAGE Unmarried persons: Personal exemption of $1,000 from supplementary war income tax of Personal exemption of $3,000 from normal tax of 2 per cent.. Applies only to normal tax Applies to interest on securities containing "tax-free" covenant, ac- ..... 119 102 102 102 100 101 105 105 105 149 103 103 104 104 109 109 108 95 95 96 96 109 118 116 118 115 |