Page:United States Statutes at Large Volume 42 Part 1.djvu/280

 252 SIXTY·SEVENTH CONGRESS. Sess. I. C11. 136. 1921. ”‘°°"' ’**· gsant a reasonable extension of time for filing returns whenever in mum judgment good cause exists and shall keep a record of every such ‘ extension and the reason therefor. Except m the case of taxpayers To www of db who are abroad, no such extension shall be for more than six months. ¤·m,¤¢¤. (b) Returns shall be made to the collector for the district in which is located the legal residence or principal place of business of the person making the return, or, if he has no egal residence or princi al place of business in the United States, then to the collector at Balitimore, Maryland. rciinnrligsmmm in uunnasrxrnurzxr m anrunms. ¤¤¤¤¤¤~ zii·{¤.•¢c. Sec. 228. That if the collector or deputy collector has reason to believe that the amount of any income returned is understated, he shall give due notice to the taxpayer making the return to show cause why e amount of the return should not be increased, and upon 1;,,,..; to 4;.,,,,,.,;,. groof of the amount understated, may increase the same accordingly. facts and if dissatisfied with the decision of the co ector may appeal to the Commissioner for his decision, under such rules of procedure as may be prescribed by the Commissioner with the approval of the Secretary. N" *°°°'P°"“°"’· INCORPORATION or mmvmusx. oa raarmzasrrrr Busmass.
 * °'·°“‘~ uch taxpayer may furnish sworn testimony to Iilrove any relevant
 * »a"wa*u»°°x¤`}'.¥T.°§ Sec. 229. That in the case of the orggsnization as a corporation

"‘§,'}§;,,,, M m,,,,,, within four months after the passage of t act of any trade or busi- ¤¤¤"¤ {>{_g*P¤:¤riLL_:gl9i· ness in which capital is a material income-producing factor, and p` which was previously owned by a partnership or individual, the net income of such trade or business from January 1, 1921, to the date of such organization may at the option of the individual or partnership be taxed as the net income of a corporation is taxed under Titles II and III; in which event the net income and invested capital of such trade or business shall be computed as if such corporation had been in existence on and after January 1, 1921, and the undistributed profits or e of such trade or business shall not be subject to the surtaxes im n section 21 1, but amounts distributed on and after January 1, 1921, from the earnings or profits of such trade or business accumulated after December 31, 1920, shall be taxed to the recipients as dividends; and all the provisions of Titles II and III relating to pmam. _ corporations shall so far as practicable apply to such trade or business: m·};§§,l‘°°"°“ '°' Prmnkied, That this section shall not app y to any trade or business, the net income of which for the taxable year 1921 was less than 20rp§r ¤°¥;•{;¤¤;S¤;¢tg;ww¤» centum of its invested capital for such lyigarz Ifraarideglllfunher, t Vol.40,p.1i26. any taxdpayer who takes advantage of t section sh pay the tax impose by section 1000 of the Revenue Act of 1918 as if such taxpayer had been a corporation on and after January 1, 1921. °°”’°”“°"" Paar III.—COB.PORA'1'ION8. T“l°“°°‘ Tax ON coaroaarrons. A v9.°fRf{, Sec. 230. That, in lieu of the tax irniposed by section 230 of the °°· RevenueAct of 1918, there shall be levie, collected, and paid for each itaizable year upon the net income of every corporation a tax at the 0 owing rates: IQEK °°°°“d"' "°" (a) For the calendar year 1921, 10 per centum of the amount of h the net income in excess of the creditifprovided in section 236; and mi? YW m"°°" (b) For each calendar year there ter, 12} per centum of such
 * 0**4*- **6- excess amount.