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correct return duly verified under oath, of its payments of dividends, stating the name and address of each stockholder, the number of shares owned by him, and the amount of dividends paid to him.

Sec. 255. That every individual, corporation, or partnership doing business as a broker shall, when required by the Commissioner, render a correct return duly verified under oath, under such rules and regulations as the Commissioner, with the approval of the Secretary, may prescribe, showing the names of customers for whom such individual, corporation, or partnership has transacted any business, with such details as to the profits, losses, or other information which the Commissioner may require, as to each of such customers, as will enable the Commissioner to determine whether all income tax due on profits or gains of such customers has been paid.

Sec. 256. That all individuals, corporations, and partnerships, in whatever capacity acting, including lessees or mortgagors of real or personal property, fiduciaries, and employers making payment to another individual, corporation, or partnership, of interest, rent, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, or other fixed or determinable gains, profits, and income (other than payments described in sections 254 and 255), of $1,000 or more in any taxable year, or, in the case of such payments made by the United States, the officers or employees of the United States having information as to such payments and required to make returns in regard thereto by the regulations hereinafter provided for, shall render a true and accurate return to the Commissioner, under such regulations and in such form and manner and to such extent as may be prescribed by him with the approval of the Secretary, setting forth the amount of such gains, profits, and income, and the name and address of the recipient of such payment.

Such returns may be required, regardless of amounts, (1) in the case of payments of interest upon bonds, mortgages, deeds of trust, or other similar obligations of corporations, and (2) in the case of collections of items (not payable in the United States) of interest upon the bonds of foreign countries and interest upon the bonds of and dividends from foreign corporations by individuals, corporations, or partnerships, undertaking as a matter of business or for profit the collection of foreign payments of such interest or dividends by means of coupons, checks, or bills of exchange.

When necessary to make effective the provisions of this section the name and address of the recipient of income shall be furnished upon demand of the individual, corporation, or partnership paying the income.

The provisions of this section shall apply to the calendar year 1918 and each calendar year thereafter, but shall

not apply to the payment of interest on obligations of the United States.

Revised form of ownership certificates. (T. D. 2923.) Returns as pub- Sec. 257. That returns upon which the tax has been delic records.

termined by the Commissioner shall constitute public records; but they shall be open to inspection only upon order of the President and under rules and regulations prescribed by the Secretary and approved by the President: Provided, That the proper officers of any State imposing an income tax may, upon the request of the governor thereof, have access to the returns of any corporation, or to an abstract thereof showing the name and income of the corporation, at such times and in such manner as the Secretary may prescribe: Provided further, That all bona fide stockholders of record owning 1 per centum or more of the outstanding stock of any corporation shall, upon making request of the Commissioner, be allowed to examine the annual income returns of such corporation and of its subsidiaries. Any stockholder who pursuant to the provisions of this section is allowed to examine the return of any corporation, and who makes known in any manner whatever not provided by law the amount or source of income, profits, losses, expenditures, or any particular thereof, set forth or disclosed in any such return, shall be guilty of a misdemeanor and be punished by a fine not exceeding $1,000, or by imprisonment not exceeding one year, or both.

The Commissioner shall as soon as practicable in each year cause to be prepared and made available to public inspection in such manner as he may determine, in the office of the collector in each internal revenue district and in such other places as he may determine, lists containing the names and the post-office addresses of all individuals making income-tax returns in such district.

Regulations governing inspection of returns. (T. D. 2961.)

Furnishing copies of returns. (T. D. 2962.) Sec. 258. That 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.

Sec. 259. That all individuals, corporations, or partnerships 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

Publication of statistics.

Collection of foreign items.

Porto

Rico

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.

Sec. 260. That any individual who is a citizen of any United States possession of the United States (but not otherwise a citi- possessions. zen 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. SEC. 261. That in Porto Rico and the Philippine

and Philippine Islands the income tax shall be levied, assessed, collected, Islands. and paid in accordance with the provisions of the Revenue Act of 1916 as amended.

Returns shall be made and taxes shall be paid under Title I of such Act in Porto Rico or the Philippine Islands, as the case may be, by (1) every individual who is a citizen or resident of Porto Rico or the Philippine Islands or derives income from sources therein, and (2) every corporation created or organized in Porto Rico or the Philippine Islands or deriving income from sources therein. An individual who is neither a citizen nor a resident of Porto Rico or the Philippine Islands but derives income from sources therein, shall be taxed in Porto Rico or the Philippine Islands as a nonresident alien individual, and a corporation created or organized outside Porto Rico or the Philippine Islands and deriving income from sources therein shall be taxed in Porto Rico or the Philippine Islands as a foreign corporation. For the purposes of section 216 and of paragraph (6) of subdivision (a) of section 234 a tax imposed in Porto Rico or the Philippine Islands upon the net income of a corporation shall not be deemed to be a tax under this title.

The Porto Rican or 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,

- CHAPTER SEVENTEEN.
WAR-PROFITS AND EXCESS-PROFITS TAX.1, 2

[Title III, act of February 24, 1919 (10 Stat., 1057).)

PART I.-GENERAL DEFINITIONS. Sec. 300. Definitions.

PART II.- IMPOSITION OF TAX. Sec.

Sec. 301. Rates of tax; income from Gov- 303. Computation of tax. ernment contracts.

304. Exempt corporations. 302. Amount of tax limited.

305. Reduction of specific exemption.

PART III.-CREDITS. Sec.

Sec. 310. “Prewar period " defined.

312. Excess-profits credit. 311. War-profits credit.

PART IV.-NET INCOME. Sec. 320. Ascertaining and returning net income.

PART 1.-IVESTED CAPITAL. Sec.

Sec. 325. Definitions ; par value of stock. 327. Determination of tax in certain 326. Invested capital " defined; de

instances, ductions; invested capital for 328. Computation of tax in certain period.

cases; records.

PART VI.--REORGANIZATIONS. Sec.

Sec. 330. ('orporations; partnerships or in- 331. Reorganization after March 3, dividuals.

1917.

Part VII.-MISCELLANEOUS, Sec.

Sec. 33.). ('omputation where fiscal year be- 336. Returns required; payment of tax.

gan in 1917; tiscal year be- 337. Tax in case of sale of mines, etc.
ginning in 1918; partnership or
personal service corporation
with fiscal year beginning in
1917.

Definitions.

TITLE III.-WAR-PROFITS AND EXCESS-PROFITS TAX.

PART I.--GENERAL DEFINITIONS. SEC. 300. [Act of February 24, 1919 (40 Stat., 1057).] That when used in this title the terms“ taxable year," “ fiscal year,” “ personal service corporation,” “ paid or accrued," and "dividends" shall have the same meaning as provided for the purposes of income tax in sections 200 and 201. The first taxable year for the purposes of this title shall be the same as the first taxable year for the purposes of the income tax under Title II.

1 See Regulations No. 45.

2 Act of March 3, 1917 (see post, p. 845); act of October 3, 1917 (see post, p. 849).

140184°-20

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