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such action and of the identity of the officer or individual, a copy may be furnished to such person. A copy of a partnership income return will be furnished to any individual (or his duly constituted attorney in fact or legal representative) who was a member of such partnership during any part of the time covered by the return, upon satisfactory evidence of such fact being furnished.
ART. 1092. Inspection of returns by committees of Congress.—The Committee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, or a special committee of the Senate or the House is entitled, either acting directly as a committee, or by and through such examiners and agents as it may designate or appoint, to examine the annual income returns of any taxpayer, and any return of a corporation filed for the purpose of the tax imposed by section 1000, Title X, of the Revenue Acts of 1918 and 1921, or by section 700, Title VII, of the Revenue Act of 1924, at such times and in such manner as may be determined by any such committee. The Secretary of the Treasury is required to furnish any data of any character contained in or shown by any such returns that may be required by such committee. The committee may also submit to the Senate or the House or to both the Senate and the House any relevant or useful information obtained from such returns.
ART. 1093. Inspection of returns by State officers.-1. The proper officers of a State are entitled as of right upon the request of its governor to have access to the income and profits tax returns of a corporation, association, joint-stock company, or insurance company, or to an abstract thereof, showing its name and income.
2. The request or application of the governor must be in writing, signed by him under the seal of his State, and must show:
(a) The name and address of the corporation, association, jointstock company, or insurance company making the returns to which access is desired.
(6) Why access is desired.
(c) The names and official positions of the officers designated to have the access.
3. The request or application of the governor may be addressed either to the Secretary of the Treasury or to the Commissioner of Internal Revenue, but should be transmitted to the Commissioner, who will set a convenient time for the access to the returns (or to an abstract thereof as he may determine).
4. Access shall be given only in the office of the Commissioner of Internal Revenue in Washington.
5. The officers designated by the governor will not be permitted to name another person or persons to examine the returns (or abstracts) for them.
6. The officers designated will be given access only to the returns of those corporations, associations, joint-stock companies, or insurance companies organized or doing business in their State.
7. The officers designated may have access to lists furnished to supplement and become a part of the returns to which they are given
8. The proper officers of a State may have access to the capital stock tax returns filed under the provisions of section 700 of the Revenue Act of 1924 and section 1000 of the Revenue Acts of 1918 and 1921 under the same conditions prescribed in the preceding paragraph for access to the income and profits tax returns of corporations, associations, joint-stock companies, and insurance companies.
ART. 1094. Inspection of returns by shareholder.-A bona fide shareholder of record owning 1 per cent or more of the outstanding stock of a corporation shall be entitled as of right, upon making request of the Commissioner of Internal Revenue, to examine the annual income returns of such corporation and of its subsidiaries, and all returns of such corporations and subsidiaries filed for purposes of the tax imposed by section 1000 of the Revenue Acts of 1918 and 1921, or by section 700 of the Revenue Act of 1924. His request for permission to examine such returns must be made in writing, and must be in the form of an affidavit showing his address, the name of the corporation, the period of time covered by the return he desires to inspect, the amount of the corporation's outstanding capital stock, the number of shares owned by him, the date when he acquired them, and whether he has the beneficial as well as the record title to such shares. It must also show that he has not acquired his shares for the purpose of the examination of the income returns of the corporation. If he has acquired them for this purpose he is not a bona fide shareholder within the meaning of the statute. The application must be supported by satisfactory evidence showing that the applicant is a bona fide shareholder of record of the required amount of stock of the corporation. The supporting evidence may be partly in the form of a certificate signed by the president or vice president of the corporation and countersigned by the secretary under the corporate seal. Upon being satisfied from the evidence presented that the applicant has fully met these conditions the Commissioner will grant the permission to examine the returns and set a convenient time for the examination in the office of the Commissioner. This privilege is personal and will be granted only to the shareholder, who can not delegate it to another.
ART. 1095. Penalties for disclosure of returns.-A shareholder who examines the return of a corporation and reveals without express authority of law any particulars of its income statement is guilty of a misdemeanor and liable to fine and imprisonment. Section 3167 of the Revised Statutes, as amended by section 1317 of the Revenue Act of 1918 and reenacted without change by section 1018 of the Revenue Act of 1924, also provides :
SEC. 3167. It shall be unlawful for any collector, deputy collector. agent, clerk, or other officer or employee of the United States to divulge or to make known in any manner whatever not provided by law to any person the operations, style of work, or apparatus of any manufacturer or producer visited by him in the discharge of his official duties, or the amount or source of income, profits, losses, expenditures, or any particular thereof, set forth or disclosed in any income return, or to permit any income return or copy thereof or any book containing any abstract or particulars thereof to be seen or examined by any person except as provided by law; and it shall be unlawful for any person to print or publish in any manner whatever not provided by law any income return, or any part thereof or source of income, profits, losses, or expenditures appearing in any income return; and any offense against the foregoing provision shall be a misdemeanor and be punished by a fine not exceeding $1,000 or by imprisonment not exceeding one year, or both, at the discretion of the court; and if the offender be an officer or employee of the United States he shall be dismissed
from office or discharged from employment. An internal revenue officer discovering in the course of his duty information leading him to suspect a possible violation of any law with the enforcement of which he is not directly concerned should immediately report the matter to the Commissioner, who is authorized to communicate with the proper department involved.
PUBLICATION OF STATISTICS
SEC. 258. The Commissioner, with the approval of the Secretary, shall prepare and publish annually statistics reasonably available with respect to the operation of the income, war-profits and excess-profits tax laws, including classifications of taxpayers and of income, the amounts allowed as deductions, exemptions, and credits, and any other facts deemed pertinent and valuable.
Art. 1101. Statistics of income.—The Commissioner will publish annually a volume of statistics of income, showing, among other things, the distribution of incomes between corporations and individuals and by States, by classes and by occupations.
COLLECTION OF FOREIGN ITEMS
SEC. 259. All persons undertaking as a matter of business or for profit the collection of foreign payments of interest or dividends by means of coupons, checks, or bills of exchange shall obtain a license from the Commissioner and shall be subject to such regulations enabling the Government to obtain the information required under this title as the Commissioner, with the approval of the Secretary, shall prescribe; and whoever knowingly undertakes to collect such payments without having obtained a license therefor, or without complying with such regulations, shall be guilty of a misdemeanor and shall be fined not more than $5,000, or imprisoned for not more than one year, or both.
ART. 1111. License to collect foreign items.--Banks or agents collecting foreign items, as defined in article 1076, and required by article 1079 to make returns of information with respect thereto, must obtain a license from the Commissioner to engage in such business. Application Form 1017 for such license may be procured from collectors. The license is issued without cost on Form 1010. In cases where ownership certificates are required to accompany foreign items (as set forth in articles 1077-1079), the licensee should not accept such items for collection unless accompanied by the proper certificates. Any person holding a license under the Revenue Act of 1921 or any prior Act will not be required to renew such license.
CITIZENS OF POSSESSIONS OF THE UNITED STATES
SEC. 260. Any individual who is a citizen of any possession of the United States (but not otherwise a citizen of the United States) and who is not a resident of the United States, shall be subject to taxation under this title only as to income derived from sources within the United States, and in such case the tax shall be computed and paid in the same manner and subject to the same conditions as in the case of other persons who are taxable only as to income derived from such sources.
Nothing in this section shall be construed to alter or amend the provisions of the Act entitled "An Act making appropriations for the naval service for the fiscal year ending June 30, 1922, and for other purposes," approved July 12, 1921, relating to the imposition of income taxes in the Virgin Islands of the United States.
ART. 1121. Status of citizen of United States possession.—A citizen of a possession of the United States (except the Virgin Islands), who is not otherwise a citizen or a resident of the United States, including only the States, the Territories of Alaska and Hawaii, and the District of Columbia, is treated for the purpose of the tax as if he were a nonresident alien individual. See articles 92, 93, 271, 306, 311, 317, and 404. His income from sources within the United States is subject to withholding. See section 221 and articles 361-376. The Act referred to in section 260 of the statute provides that income tax laws then or thereafter in force in the United States shall apply to the Virgin Islands, but that the taxes shall be paid into the treasury of the Virgin Islands. Accordingly, a citizen or resident of the Virgin Islands is taxed there under the provisions of the Revenue Act of 1924.
PORTO RICO AND THE PHILIPPINE ISLANDS
SEC. 261. In Porto Rico and the Philippine Islands the income tax shall be leved, assessed, collected, and paid as provided by law prior to the enactment of this Act.
The Porto Rican or the Philippine Legislature shall have power by due enactment to amend, alter, modify, or repeal the income tax laws in force in Porto Rico or the Philippine Islands, respectively.
Art. 1131. Income tax in Porto Rico and Philippine Islands.The Revenue Act of 1924 is not in force in Porto Rico and the Philippine Islands. No credit against net income is allowed individuals and no deduction from gross income is allowed corporations with respect to dividends received from a foreign corporation (foreign with respect to the United States) taxed in Porto Rico or the Philippines, but having no income from sources within the United States.
ART. 1132, Taxation of individuals between United States and Porto Rico and Philippine Islands.-(a) A citizen of the United States who resides in Porto Rico, and a citizen of Porto Rico who resides in the United States, are taxable in both places, but the income tax in the United States is credited with the amount of any income, warprofits, and excess-profits taxes paid in Porto Rico. See section 222 of the statute and articles 381-387. (6) A resident of the United States, who is not a citizen of Porto Rico, is taxable in Porto Rico as a nonresident alien individual on any income derived from sources within Porto Rico, but the income tax in the United States is credited with the tax paid in Porto Rico. (c) A resident of Porto Rico, who is not a citizen of the United States, is taxable in the United States as a nonresident alien individual on any income derived from sources within the United States, and receives no such credit. See also section 260 and article 1121. The same principles apply in the case of the Philippine Islands.
ART. 1133. Taxation of corporations between United States and Porto Rico and Philippine Islands.—(a) A United States corporation which derives income from sources within Porto Rico, (b) a Porto Rico corporation which derives income from sources within the United States, and (c) a corporation of a foreign country which derives ir.come both from sources within Porto Rico and from sources within the United States are all taxable in both places. In the case of the United States corporation the income taxes in the United States are credited with the amount of any income, war-profits, and excess-profits taxes paid in Porto Rico. In the case of the Porto Rico corporation there is no such credit. See section 238 of the statute and article 611. The corporation of the foreign country deriving income from both places is subject to no double taxation so far as the United States and Porto Rico are concerned. See further section 238. For the purpose of withholding, a Porto Rico corporation is a foreign corporation. See section 237 and article 601. The same principles apply in the case of the Philippine Islands.