Page:Federal Register, Vol. 1, No. 1.pdf/9

Rh penalties, provided that without unnecessary delay such tentative return is supplemented by a return made on the proper form. (See article 304, relating to due date of return.)

303. Time and place for filing returns.—Returns are required to be made on the calendar year basis on or before January 31 next following the close of the calendar year, and must be filed with the collector of internal revenue for the district in which is located the principal place of business of the employer, or if the employer has no principal place of business in the United States, the return must be filed with the collector of internal revenue at Baltimore, Md.

304. Extensions of time for filing returns.—It is important that the taxpayer render on or before January 31, next following the close of the taxable year, a return as nearly complete as it is possible for him to prepare. However, the Commissioner is authorized to grant an extension of time for not more than 60 days for filing returns, under such rules and regulations as he may prescribe with the approval of the Secretary. Accordingly, authority for granting extensions of time for filing returns is hereby delegated to the several collectors of internal revenue. Application for extensions of time for filing returns should be addressed to the collector of internal revenue for the district in which the taxpayer files his returns and must contain a full recital of the causes for the delay. For extensions of time for payment of tax, see article 401.

305. Due date of return.The due date is the latest date on which a return is required to be filed in accordance with the provisions of the Act of the last day of the period covered by an extension of time granted by the Commissioner or a collector. When the due date falls on a Sunday or a legal holiday, the due date for filing returns will be the day following such Sunday or legal holiday. If placed in the mails, the return should be posted in ample time to reach the collector’s office under ordinary handling of the mails, on or before the date on which the return is required to be filed. If a return is made and placed in the mails in due course, properly addressed and postage paid, in ample time to reach the office of the collector on or before the due date, no penalty will attach should the return not actually be received by such officer until subsequent to that date. As to additions to the tax in the case of failure to file a return within the prescribed time, see article 502. If an employer ceases business, his last return shall be marked "Final return."

Returns filed under this title shall be open to inspection in the same manner, to the same extent, and subject to the same provisions of law, including penalties, as returns made under Title II of the Revenue Act of 1926.

306. Inspection of returns.—Pursuant to the above provision, the inspection of returns made under Title IX of the Act is governed by the provisions of sections 257 and 1203 (d) of the Revenue Act of 1926. (See Appendix B, paragraphs 20 and 21.)

The returns upon which the tax has been determined by the Commissioner, although public records are open to inspection only to the extent authorized by the President (except as otherwise expressly provided) under rules and regulations promulgated by the Secretary of the Treasury and approved by the President.

(a) Every person liable to any tax imposed by this Act, or for the collection thereof, shall keep such records, render under oath such statements, make such returns, and comply with such rules and regulations, as the Commissioner, with the approval of the Secretary, may from time to time prescribe.

(b) Whenever in judgment of the Commissioner necessary he may require any person, by notice served upon him, to make a return, render under oath such statements, or keep such records as the Commissioner deems sufficient to show whether or not such person is liable to tax.

(a) Any person required under this Act to pay any tax, or required by law or regulations made under authority thereof to make a return, keep any records, or supply any information for the purpose of the computation, assessment, or collection of any tax imposed by this Act, who willfully fails to pay such tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof, be fined not more than $10,000, or imprisoned for not more than one year, or both, together with the costs of prosecution.

307. Records.—(a) Every person subject to tax under the Act shall, during the calendar year 1936 or any calendar year thereafter, for each such calendar year, keep such permanent records as are necessary to establish:

(1) The total amount of remunerations payable to his employees in cash or in a medium other than cash, showing separately, (a) total remuneration payable with respect to services excepted by section 907 (c), (b) total remuneration payable with respect to all other services.

(2) The amount of contributions paid by him into any State unemployment fund, with respect to services during the calendar year to excepted by section 907 (c), showing separately, (a) payments made and not deducted (or to be deducted) from the remuneration of employees, (b) payments made and deducted (or to be deducted) from the remuneration of employees; and also the amount of contributions paid by him into any State unemployment fund with respect to services excepted by section 907 (c).

(3) The information required to be shown on the prescribed return and the extent to which such person is liable for the tax.

(b) No particular method of accounting or form of record is prescribed. Each person may adopt such records and such method of accounting as may best meet the requirements of his own business, provided that they clearly and accurately show the information required above, and enable him to make a proper return on the prescribed form.

(c) Records are not required to show the number of individuals employed on any day, but must show the total amount of remuneration actually paid during each calendar month or during each such lesser period as the employer may elect.

(d) Any person who employs individuals during any calendar year, but who considers that he is not an employer subject to the tax (see articles 203 and 204), should be prepared to establish by proper records (including, where necessary, records of the number of persons employed each day) that he is not an employer subject to the tax.

(e) All records required by these regulations shall be kept safe and readily accessible at the place of business of the person required to keep such records. Such records shall at all times be open for inspection by internal revenue officers, and shall be preserved for a period of at least four years from the due date of the tax for the calendar year to which they relate.

308. Termination of business.—Any employer who contemplated either discontinuing business by retirement therefrom or a merger, consolidation, or reorganization involving the transfer of assets, shall immediately give notice in writing of that fact. If an individual, subject to the tax, dies, notice of his death shall be given in writing by the executor or administrator of his estate as soon as practicable thereafter. In the case of bankruptcy or receivership proceedings, or a proceeding for the relief of a debtor who is an employer, the trustee in bankruptcy, receiver, or person designated by order of the court as in control of the assets of the debtor, shall give notice in writing of the adjudication of bankruptcy, the appointment of the receiver, or the filing No.1—2