Page:Federal Register, Vol. 1, No. 2.pdf/5

Rh F E D E R A L R E G ISTE R, March 17, 1936 article 603, and fo r provisions relating to penalties, see articles 604 and 605 and section 1114 of the Revenue Act of 1926, made applicable by section 8 (c ) of the Act. Section 3 (b) of the act (b) I f more or less than the correct amount of tax im­ posed by section 2 is paid with respect to any compensation payment, then, under regulations made under this Act by the Commissioner of Internal Revenue, proper adjustments, with respect both to the tax and the amount to be deducted, shall be made, without interest, in connection with subse­ quent wage payments to the same employee by the same employer. A r t. 405. Adjustment o f employees? tax— (a ) Overcollec­ tions.__I f a carrier collects from any employee more than the correct amount of employees’ tax with respect to any compensation payment, and if the overcollection comes to the attention of the carrier after the quarterly return cover­ ing such payment is filed, the carrier shall adjust the over­ collection by deducting the amount thereof from the amount of employees’ tax which attaches with respect to a subse­ quent compensation payment by such carrier to such em­ ployee. In such case the carrier shall take credit fo r the amount of the overcollection bn the return in which such subsequent compensation payment is reported. I f an over­ collection of employees’ tax comes to the attention of the carrier prior to the time the quarterly return covering such payment is filed, the carrier shall immediately adjust the overcollection with the employee. No overcollection shall be adjusted under this subdivision Tinless the return on which credit therefor is taken is filed within four years after the date on which the tax was paid to the collector. (b) Undercol lections.— I f by reason of a mistake in com­ puting the tax a carrier collects from any employee less t.hqn the correct amount of employees’ tax with respect to any compensation payment, the carrier shall adjust the undercollection by deducting from a subsequent remunera­ tion payment by such carrier to such employee, in addition to the amount of employees’ tax with respect to such subse­ quent payment, the amount which the carrier failed to collect. The amount so collected shall be reported on the return for the period in which the adjustment is made. I f a carrier collects the correct amount of employees’ tax with respect to any compensation payment, but underpays such tax to a collector, the amount of the underpayment shall be paid in accordance with the provisions of section 6 of the Act. See article 601, relating to collection of under­ payments. No undercollection shall be adjusted under this subdi­ vision unless the deduction required by this subdivision is made within one year after the date of the compensation payment with respect to which the undercollection of tax was made. (c) Time fo r making adjustments.— When any undercol­ lection or overcollection comes to the attention of the carrier in any manner, the carrier shall make the adjustment, if per­ missible under this article, in connection with the first re­ muneration payment made thereafter. (d ) Interest.— No interest shall be allowed or collected with respect to the amount of any overcollection or undercollection adjusted under this article. Section 5 of the act S ec. 5. I f more or less than the correct amount of the tax

imposed by section 4 is paid, with respect to any compensa­ tion payment, then, under regulations made by the Commis­ sioner of Internal Revenue, proper adjustments with respect to the tax shall be made, without interest, in connection with subsequent excise-tax payments made by the same employer. A rt. 406. Adjustment of carriers? tax.— (a ) Overpay­ ments.— I f any carrier pays more than the correct amount of carriers’ tax with respect to any compensation payment, the carrier may adjust the overpayment by taking credit in the amount of the overpayment on any return which is filed within four years after the date on which the tax was paid.

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(b) Underpayments.— I f by reason o f a mistake in com­ puting the tax any carrier pays less than the correct amount of carriers’ tax with respect to any compensation payment, the carrier may adjust the underpayment (1) by reporting the amount thereof on any return filed within one year after the date of the compensation payment, and (2) by paying such amount at the time such return is filed. (c) Interest.— No interest shall be allowed or collected with respect to the amount of any overpayment or under­ payment adjusted under this article. CHAPTER V. EMPLOYEES’ REPRESENTATIVES’ TAX

Section 7 of the act S ec. 7. In addition to other taxes, there shall be levied, collected, and paid upon the compensation of each employees’ representative received by such representative an income tax of 7 per centum annually upon that portion of the com­ pensation of such employees’ representative not in excess of $300 per month. The compensation of a representative for the purpose of ascertaining the tax thereon shall be deter­ mined according to such rules and regulations as the Com­ missioner of Internal Revenue shall deem just and reasonable and as near as may be shall be the same compensation as if the representative were still in the employ of the last former carrier. A r t. 501. Rate and measure of representatives? tax.— The representatives’ tax is imposed at the rate of 7 per cent on all compensation received by a representative during the period March 2, 1936, to February 28, 1937, both dates in­ clusive, with respect to services performed after August 28, 1935. (For definitions of “ representative” and “ compensa­ tion”, see articles 5 and 6 (b ), respectively; see also article 609.) A r t. 502. When representatives’ tax attaches.— The repre­ sentatives’ tax attaches with respect to compensation at the time such compensation is either actually or constructively received. A r t. 503. Liability for representatives’ tax.— The represent­ ative is liable for the representatives’ tax. Section 8 (b) and (c ) of the act (b) Such taxes shall be collected and paid quarterly in such manner and under such conditions not inconsistent with this Act as may be prescribed by the Commissioner of Internal Revenue. (c) A ll provisions of law, including penalties, applicable with respect to any tax imposed by section 600 or section 800 of the Revenue Act of 1926, and the provisions of section 607 of the Revenue A ct of 1934, insofar as applicable and not in­ consistent with the provisions of this Act, shall be applicable with respect to the taxes imposed by this Act. Section 602 of the Revenue Act of 1926 made applicable by section 8 (c ) of the act S ec. 602. Every person liable fo r any tax * * * shall make * * * returns under oath * * * and pay the taxes imposed by such section to the collector fo r the dis­ trict in which is located the principal place of business. Such returns shall contain such information and be made at such times and in such manner as the Commissioner, with the approval of the Secretary, may by regulations prescribe. The tax shall, without assessment by the Commissioner or notice from the collector, be due and payable to the col­ lector at the time so fixed for filing the return * * •.

Section 1102 (a ) and (b) of the Revenue Act of 1926, made applicable by section 8 (c) of the act S ec. 1102. (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 3uch rules and regulations, as the Commissioner, with the approval of the Secretary, may from time to time prescribe. (b) Whenever in the judgment of the Commissioner neces­ sary he may require any person, by notice served upon him, to make a return, render under oath such statements, or