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enactment of this Act, subject to the limitations provided in subdivisions (b) and (c):

Title II (called "Income Tax”) as of January 1, 1924;
Title IV (called "Estate Tax”);

Title V (called “Tax on Telegraph and Telephone Messages”) except subdivision (d) of section 500, effective on the expiration of thirty days after the enactment of this Act;

Sections 602 and 603 of Title VI (being the taxes on certain beverages and constituent parts thereof);

Title VII (called "Tax on Cigars, Tobacco, and Manufacturers Thereof");

Title VIII (called “Tax on Admissions and Dues”), effective on the expiration of thirty days after the enactment of this Act;

Sections 901, 902, 903, and 904 of Title IX (being certain excise taxes);

Section 900 of Title IX (being certain excise taxes) and section 905 of Title IX (being the tax on jewelry and similar articles), effective on the expiration of thirty days after the enactment of this Act;

Title X (called "Special Taxes”) effective on June 30, 1924;

Title XI (called "Stamp Taxes”) effective on the expiration of thirty days after the enactment of this Act;

Title XII (called “Tax on Employment of Child Labor");

Sections 1307, 1308, 1309, subdivision (c) of section 1310, sections 1311, 1312, 1313, 1314, 1315, 1316, 1318, 1320, 1321, 1322, 1323, 1324, 1325, 1326, 1328, 1329, and 1330 (being certain administrative provisions).

(b) The parts of the Revenue Act of 1921 which are repealed by this Act shall (except as provided in sections 280 and 316 and except as otherwise specifically provided in this Act) remain in force for the assessment and collection of all taxes imposed by such Act, and for the assessment, imposition, and collection of all interest, penalties, or forfeitures which have accrued or may accrue in relation to any such taxes, and for the assessment and collection, to the extent provided in the Revenue Act of 1921, of all taxes imposed by prior income, war-profits, or excess-profits tax acts, and for the assessment, imposition, and collection of all interest, penalties, or forfeitures which have accrued or may accrue in relation to any such taxes. In the case of any tax imposed by any part of the Revenue Act of 1921 repealed by this Act, if there is a tax imposed by this Act in lieu thereof, the provision imposing such tax shall remain in force until the corresponding tax under this Act takes effect under the provisions of this Act.

(c) The repeal of Title II and Title IV of the Revenue Act of 1921 shall not be construed to take away the retroactive benefits allowed by paragraph (12) of subdivision (a) of section 214. or paragraph (14) of subdivision (a) of section 234, of the Revenue Act of 1921, or by section 401 or 403 of such Act.

Legislative Drafting Service. Sec. 1101. Section 1303 of the Revenue Act of 1918 is amended by adding at the end thereof a new subdivision to read as follows:

"(d) After this subdivision takes effect the legislative drafting service shall be known as the office of the legislative counsel, and the two draftsmen shall be known as legislative counsel. The positions of legislative counsel shall be allocated from time to time by the President of the Senate and the Speaker of the House of Representatives, jointly, to the appropriate grade in the compensation schedules of section 13 of the Classification Act of 1923. The rate of compensation of each of the two legislative counsel_shall be fixed from time to time, within the limits of such grade, by the President of the Senate and the Speaker of the House of Representatives, respectively. The increased compensation provided for in this subdivision shall, when fixed, be in lieu of the salary specified in subdivision (a). The legislative counsel shall have the same privilege of free transmission of official mail matter as other officers of the United States Government."

Government Actuary. Sec. 1102. The salary of the Government Actuary, so long as the position is held by the present incumbent, shall be at the rate of $7,500 a year.

Saving Clause in Event of Unconstitutionality. Sec. 1103. If any provision of this Act, or the application thereof to any person or circumstances, is held invalid, the remainder of the Act, and the application of such provision to other persons or circumstances, shall not be affected thereby.

Effective Date of Act.* Sec. 1104. Except as otherwise provided, this Act shall take effect upon its enactment.

TITLE XII.-REDUCTION OF INCOME TAX PAYABLE IN 1924.

Sec. 1200. (a) Any taxpayer making return, for the calendar year 1923, of the taxes imposed by Parts I and II of Title II of the Revenue Act of 1921 shall be entitled to an allowance by credit or refund of 25 per centum of the amount shown as the tax upon his return.

(b) If the amount shown as the tax upon the return has been paid in full on or before the time of the enactment of this Act, the amount of the allowance provided in subdivision (a) shall be credited or refunded as provided in section 281 of this Act.

(c) If the taxpayer has elected to pay the tax in installments and, at the time of the enactment of this Act, the date prescribed for the payment of the last installment has not yet arrived, the amount of the allowance provided in subdivision (a) shall be prorated to the four installments. The amount so prorated to any installment, the date for payment of which has not arrived, shall be applied in reduction of such installment. The amount so prorated to any installment, the date for payment of which has arrived, shall be credited against the installment next falling due after the enactment of this act.

(d) If the taxpayer has been granted an extension of time for payment of the tax or any installment thereof to a date subsequent to the enactment of this Act, the amount of the allowance provided in subdivision (a) shall be applied in reduction of the amount of tax shown upon the return, or, if the tax is to be paid in installments, shall be prorated to the four installments. The amount so prorated to any installment, the date for payment of which has not arrived, shall be applied in reduction thereof. The amount so prorated to any installment, the date for payment of which has arrived, shall be credited against the installment next falling due after the enactment of this Act.

(e) Where the taxpayer at the time of the enactment of this Act has not paid in full that part of the amount shown as the tax upon the return which should have been paid on or before the time of the enactment of this Act, then 25 per centum of any amount already paid shall be applied in reduction of the amount unpaid (such unpaid amount being first reduced by 25 per centum thereof) and any excess shall be credited or refunded as provided in section 281 of this Act.

(f) If the correct amount of the tax is determined to be in excess of the amount shown as the tax upon the return, and a deficiency has been assessed before the enactment of this Act, then 25 per centum of any amount of such deficiency which has been paid shall be applied in reduction of the amount unpaid (such unpaid amount being first reduced by 25 per centum thereof) and any excess shall be credited or refunded as provided in section 281 of this Act. Any deficiency assessed after the enactment of this Act shall be reduced by 25 per centum of the amount which would have been assessed as a deficiency if this title had not been enacted.

(g) The allowance provided in subdivision (a) shall be deducted from the tax or deficiency for the purpose of determining the amount on which any interest, penalties or additions to the tax shall be based.

*Approved by the President, June 2, 1924. (June 2 is the effective date, “except as otherwise provided.")

Sec. 1201. (a) Any taxpayer making return, for a period beginning in 1922 and ending in 1923, of the taxes imposed by Parts I and II of Title II of the Revenue Act of 1921, shall be entitled to an allowance by credit or refund of 25 per centum of the same proportion of his tax for such period (determined under the law applicable to the calendar year 1923 and at the rates for such year) which the portion of such period falling within the calendar year 1923 is of the entire period.

(b). Any taxpayer making return, for a period beginning in 1923 and ending in 1924, of the taxes imposed by Parts I and II of Title IÍ of this Act, shall be entitled to an allowance by credit or refund of 25 per centum of the same proportion of a tax for such period (determined under the law applicable to the calendar year 1923 and at the rates for such year) which the portion of such period falling within the calendar year 1923 is of the entire period.

(c) In the case of a deficiency assessed upon a taxpayer entitled to the benefits of subdivision (a) or (b) in respect of the tax for a period beginning in 1922 and ending in 1923 or beginning in 1923 and ending in 1924, the allowance provided for in subdivisions (a) and (b) shall be made in respect of such deficiency in a similar manner to that provided in subdivision (f) of section 1200.

Sec. 1202. Any taxpayer who has made return of the taxes imposed by Parts I and II of Title II of the Revenue Act of 1921, for a period of less than a year and beginning and ending within the calendar year 1923, shall be entitled to an allowance by credit or refund of 25 per centum of the amount shown as the tax upon his return. If the correct amount of the tax for such period is determined to be in excess of the amount shown as the tax upon the return, the taxpayer shall be entitled to the benefits of subdivision (f) of section 1200 of this Act.

Sec. 1203. The allowance provided in sections 1201 and 1202 shall, under rules and regulations prescribed by the Commissioner with the approval of the Secretary, be made in a similar manner to that provided in section 1200,

Sec. 1204. The interest provided in section 1019 of this Act shall not be allowed in respect of the allowance provided for in this title.

Sec. 1205. The benefits of the allowance provided for in this title shall be granted to the taxpayer under rules and regulations prescribed by the Commissioner with the approval of the Secretary.

Sec. 1206. Terms defined in the Revenue Act of 1921 shall, when used in this title, have the meaning assigned to such terms in that Act.

End of Act.

195

INDEX

A

105, 106

[blocks in formation]

115, 116

capital stock tax.

133
defined...

IOI
exempt from tax..
gross income..

108
dividends.

III
income from miscellaneous
sources..

III
income from rents and roy-
alties.

IIO
interest.

109
operating income.

. 108, 109
profit from sale of capital
assets...

IIO
information at source.

108
items not deductible in com-
puting tax of .

117
net income
deductions

bad debts
business expenses

114, 115
depletion.

117
depreciation.

116, 117
dividends.

113, 114
taxes.

115
penalties.

107
returns for.

IOI
a period of less than twelve
months..

103
consolidated.
the income tax on.

101-150
time and place for filing returns
of.....

. 106, 107
Credits allowed
corporations.

I21
individuals
dividends.

70, 71
exemption for dependents...71, 72
personal exemption...

.71
taxable interest upon obliga-

tions of the United States.. 71
nonresident aliens..

72

С

103

Calendar year, defined..

14
Capital stock tax...

133
Classification of expenditures
(chart).

66
Collector, defined.

151
Commissioner, defined.

151
Compensation..

21
Computation of taxes
normal tax
credits allowed
individuals
dividends..

70
taxable interest

upon
obligations of the
United States.

71
personal exemption. 71
exemption for depend-
ents.

.71, 72
nonresident aliens.

72
corporations..

121-134
credits allowed.

I21
payment of taxes..

123
income tax working
sheet.

.128, 129
surtax...

.. 73, 74, 75
Computing income annual
basis...

.78, 79
Contracts, long-term.

24
Contributions or gifts......64, 65, 114
Corporations
balance sheets and working
papers of..

107

D

on

Debts, bad...

.62, 115, 116
Deductions from gross income

bad debts..... 62, 115, 116
business expenses

54, 55, 56, 66, 114, 115
contributions or gifts. .64, 65, 114
depletion..

.63, 64, 117
depreciation. 62, 63, 116, 117
interest.

56, 57, 109
losses.

-57, 58, 59, 60, 61, 112
taxes.

57, 115

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