a parent will be assumed to have the legal right to the earnings of the minor and must include them in his return.*† on Form 1040 in all cases in which the taxpayer claims any deductions for losses from the renting of, or sale or exchange of, property. The forms may be had § 9.51-4 Verification of returns. (a) from the collectors of the several dis- All income tax returns must be verified tricts. The return may be made by an under oath or affirmation. The oath agent if, by reason of illness, the person or affirmation may be administered by liable for the making of the return is any person duly authorized to adminunable to make it. The return may ister oaths for general purposes by the also be made by an agent if the tax-law of the United States or of any payer is unable to make the return by reason of continuous absence from the United States for a period of at least 60 days prior to the date prescribed by law for making the return. Whenever a return is made by an agent it must be accompanied by the prescribed power of attorney, Form 935. The taxpayer and his agent, if any, are responsible for the return as made and incur liability for the penalties provided for erroneous, false, or fraudulent returns. For returns of nonresident aliens, see §§ 9.217-1 and 9.217–2. The home or residential address of the taxpayer (including the street and number, if any) shall be given in the space provided at the top of the return for the name and address of the taxpayer. A taxpayer having a permanent business address may give that address as the principal or mailing address, provided that the complete home or residential address is also given within the space provided. *+ § 9.51-3 Return of income of minor. An individual, although a minor, who is single, is required to render a return of State, Territory, or possession of the United States, or of the District of Columbia, wherein such oath or affirmation is administered, or by a consular officer of the United States. Persons in the naval or military service of the United States may verify their returns before any official authorized to administer oaths for the purposes of those respective services. Income tax returns executed abroad may be attested free of charge before United States consular officers. If a foreign notary or other foreign official having no seal should act as attesting officer, the authority of such attesting officer should be certified to by some judicial official or other proper officer having knowledge of the appointment and official character of the attesting officer. (b) If any person or persons actually prepare an income return for another person, the prescribed form of affidavit on the return shall be subscribed and sworn to by such person or persons preparing the return. Such affidavit is required on all income returns required under the Act except the following: (1) Returns required to be made by individuals on Form 1040A; (2) Returns required under sections 143 and 144 (relating to withholding of tax at the source); (3) Returns required to be made by departing aliens under section 146; (4) Returns required under sections 147, 148, and 149 (relating to information at source); income if he has a net income of his own of $1,000 or over, or a gross income of $5,000 or over, for the taxable year. If the aggregate of the net income of such a minor from any property which he possesses, and from any funds held in trust for him by a trustee or guardian, and from his earnings which belong to him, is at least $1,000, or his gross income is at least $5,000, a return, as in the case of any other individual, must be made by him or for him by his guardian, or other person charged with the care of his person or property. (See § 9.142-2.) If he is married, see § 9.51-1. If under the laws of a State the earnings of a minor belong to the minor, such earnings, regardless of amount, are not required to be included in the return of the parent. In the absence of proof to the contrary, | certain shareholders, of certain foreign (5) Returns by subsidiary corporations included in consolidated returns; and (6) Returns required under sections 338 (a), 339, and 803 (relating to monthly information returns filed by officers and directors, and also monthly and annual information returns filed by corporations, and returns as to the | closing his gross income and the deducformation of foreign corporations). tions therefrom may be accepted as a will relieve the taxpayer from liability to penalties, provided that without unnecessary delay such a tentative return is supplemented by a return made on the proper form. (See further §§ 9.53-2 to 9.53-4.) *† Such affidavit is not required if the ac- tentative return, and if filed within the tual preparation of the return is a reg-prescribed time the statement so made ular and usual incident of the employment of one regularly and continuously employed for full time by the person for whom the return is made (as in the case of a clerk, secretary, bookkeeper, accountant, etc.). If, however, the employee is not regularly or continuously SEC. 52. Corporation returns.-Every coremployed by the person for whom the poration subject to taxation under this title return is made for the full time, or the shall make a return, stating specifically the actual preparation of the return is not and credits allowed by this title and such items of its gross income and the deductions a regular and usual incident of such em- other information for the purpose of carryployment, the requirements of this para- ing out the provisions of this title as the graph apply. Thus, if the return is pre-retary may by regulations prescribe. The reCommissioner with the approval of the Secpared by an accountant or firm of ac- turn shall be sworn to by the president, vice countants making periodical audits of president, or other principal officer and by the accounts of the person for whom the the treasurer, assistant treasurer, or chief accounting officer. In cases where receivers, return is prepared, the affidavit is retrustees in bankruptcy, or assignees are opquired. If the return is a separate erating the property or business of corporareturn of a married person, the affidavit tions, such receivers, trustees, or assignees is required, although the one actually the same manner and form as corporations shall make returns for such corporations in preparing the return is the husband or wife of the taxpayer. A person who renders mere mechanical assistance or preparation as, for example, a stenographer or typist, is not considered as preparing the return. If, in the course of his official duties, a deputy collector, an internal revenue agent, or other officer or employee of the Bureau of Internal Revenue actually prepares the return, the person for whom the return is made shall make in the return a brief statement to that effect, and it will not be necessary to make the sworn statement required by this paragraph.*† are required to make returns. Any tax due on the basis of such returns made by receivers, trustees, or assignees shall be collected in the same manner as if collected from the corporations of whose business or property they have custody and control. § 9.52-1 Corporation returns. Every corporation not expressly exempt from tax must make a return of income, regardless of the amount of its net income. In the case of ordinary corporations, the return shall be on Form 1120 or Form 1120A. For returns of insurance companies, see §§ 9.201 (b)-1, 9.204 (a)-1, and 9.207-7; of foreign corporations, see section 235; and of affili§ 9.51-5 Use of prescribed forms. ated corporations, see section 141 and Copies of the prescribed return forms § 9.141-1. A corporation having an existwill so far as possible be furnished tax-ence during any portion of a taxable payers by collectors. A taxpayer will not year is required to make a return. A be excused from making a return, how-corporation which has received a charever, by the fact that no return form has ter, but has never perfected its organibeen furnished to him. Taxpayers not zation, which has transacted no business, supplied with the proper forms should and had no income from any source, make application therefor to the collector may upon presentation of the facts to in ample time to have their returns pre- the collector be relieved from the necespared, verified, and filed with the collec-sity of making a return as long as it tor on or before the due date. Each tax-remains in an unorganized condition. In payer should carefully prepare his re- the absence of a proper showing to the turn so as fully and clearly to set forth collector such a corporation will be rethe data therein called for. Returns quired to make a return. A corporation which have not been so prepared will not which was dissolved in 1938 prior to the be accepted as meeting the requirements enactment of the Revenue Act of 1938 is of the Act. In lack of a prescribed form | not relieved from the necessity of rena statement made by a taxpayer dis-dering returns thereunder for any period or periods of its existence for which the Act is effective. For information returns by corporations contemplating dissolution or liquidation, see section 148 (d). For information returns by corporations of distributions in liquidation, see section 148 (e). For information returns by corporations relating to profits of the taxable year declared as dividends, see section 148 (b). For verification of re payers who are abroad, no such extension shall be for more than six months. (b) To whom return made.—(1) Individuals-Returns (other than corporation 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 legal residence or principal place of business in the United States, then to the collector at Baltimore, Maryland. (2) Corporations.-Returns of corporations shall be made to the collector of the district in which is located the principal turns and use of prescribed forms, see place of business or principal office or agency §§ 9.51-4 and 9.51-5.*† § 9.52-2 Returns by receivers. Receivers, trustees in dissolution, trustees in bankruptcy, and assignees, operating the property or business of corporations, must make returns of income for such corporations. If a receiver has full custody of and control over the business or property of a corporation, he shall be deemed to be operating such business or property within the meaning of section 52, whether he is engaged in carrying on the business for which the corporation was organized or only in marshaling, selling, and disposing of its assets for purposes of liquidation. Notwithstanding that the powers and functions of a corporation are suspended and that the property and business are for the time being in the custody of the receiver, trustee, or assignee, subject to the order of the court, such receiver, trustee, or assignee stands in the place of the corporate officers and is required to perform all the duties and assume all the liabilities which would devolve upon the officers of the corporation were they in control. (See sections 274 and 298 and §§ 9.274-1 and 9.274-2.) A receiver in charge of only part of the property of a corporation, however, as, for example, a receiver in mortgage foreclosure proceedings involving merely a small portion of its property, need not make a return of income.*† SEC. 53. Time and place for filing re turns. (a) Time for filing-(1) General rule. Returns made on the basis of the calendar year shall be made on or before the 15th day of March following the close of the calendar year. Returns made on the basis of a fiscal year shall be made on or before the 15th day of the third month following the close of the fiscal year. (2) Extension of time.-The Commissioner may grant a reasonable extension of time for filing returns, under such rules and regula of the corporation, or, if it has no principal place of business or principal office or agency in the United States, then to the collector at Baltimore, Maryland. § 9.53-1 Time for filing returns. Returns of income (except in the case of nonresident alien individuals, as to which see section 217, and foreign corporations, as to which see section 235) must be made on or before the fifteenth day of the third month following the close of the taxable year. A corporation going into liquidation during any taxable year may, upon the completion of such liquidation, prepare a return for that year covering its income for the part of business and may immediately file such the year during which it was engaged in return with the collector. See also section 148 (d) and (e).*† § 9.53-2 Extensions of time for filing returns. It is important that the taxpayer render on or before the due date a return as nearly complete and final as it is possible for him to prepare. However, the Commissioner is authorized to grant a reasonable extension of time for filing returns under such rules and regulations as he shall prescribe with the approval of the Secretary. Accordingly, authority for granting extensions of time for filing income tax returns is hereby delegated to the various collectors of internal revenue. Application for extensions of time for filing income tax 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. Except in the case of taxpayers who are abroad, no extension for filing income tax returns may be granted for more than 6 months. For extensions of time for payment of tax, see sections 56 (c) and 272 (j) and §§ 9.53-3, 9.56–2, and tions as he shall prescribe with the approval § 9.53-3 Extensions of time in the case | tion may be raised as to whether the reof foreign organizations, certain domestic turn was posted in ample time to reach corporations, and citizens of United States residing or traveling abroad. An extension of time for filing returns of income for taxable years begun after December 31, 1937, is hereby granted up to and including the fifteenth day of the sixth month following the close of the taxable year in the case of: (a) Foreign partnerships regardless of whether they maintain an office or place of business within the United States; (b) Foreign corporations which maintain an office or place of business within the United States; (c) Domestic corporations which transact their business and keep their records and books of account abroad; the collector's office on or before the due date, the envelope in which the return was transmitted will be preserved by the collector and forwarded to the Commissioner with the return. As to additions to the tax in the case of failure to file return within the prescribed time, see section 291.** § 9.53-5 Place for filing individual returns. Section 53 (b) (1) provides that individual 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 legal resithe United States, then to the collector dence or principal place of business in at Baltimore, Maryland. An individual employed on a salary or commission basis who is not also engaged in conducting a commercial or profes (d) Domestic corporations whose principal income is from sources within the possessions of the United States; and (e) American citizens residing or trav-sional enterprise for profit on his own eling abroad, including persons in military or naval service on duty outside the United States. In all such cases an affidavit must be attached to the return, stating the cause of the delay in filing. Taxpayers who take advantage of this extension of time will be charged with interest at the rate of 6 percent per annum on the first installment of tax from the original due date until paid.* § 9.53-4 Due date of return. The due date is the date on or before which a return is required to be filed in accordance with the provisions of the Act or 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 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 returns 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. If a ques account does not have a "principal place of business" within the meaning of section 53 (b) (1), and shall make his return to the collector for the district in which is located his legal residence, or, if he has no legal residence in the United States, then to the collector at Baltimore, Mary land.*† By taxpayer-Every person liable to any tax SEC. 54. Records and special returns.—(a) imposed by this title 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) To determine liability to tax.-Whenever in the 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 under this title. (c) Information at the source. For requirement of statements and returns by one person to assist in determining the tax liability of another person, see sections 147 to 150. (d) Copies of returns.-If any person, required by law or regulations made pursuant to law to file a copy of any income return for any taxable year, fails to file such copy at the time required, there shall be due and assessed against such person $5 in the case of an individual return or $10 in the case of a fiduciary, partnership, or corporation return, and the collector with whom the return is filed shall prepare such copy. Such amount shall be collected and paid, without interest, in the same manner as the amount of tax due in excess of that shown by the taxpayer upon a return in the case of a mathematical error appearing on the face of the return. Copies of returns filed or prepared pursuant to this subsection shall remain on file for a period of not less than two years from the date they are required to be filed, and may be destroyed at any time thereafter under the direction of the Commissioner. (e) Foreign personal holding companies.For information returns by officers, directors, and large shareholders, with respect to foreign personal holding companies, see sections 338, 339, and 340. upon written request of the Governor of such State, designating the representative of such official, body, or commission to make the inspection on behalf of such official, body, or commission. The inspection shall be made in such manner, and at such times and places, as shall be prescribed by regulations made by the Commissioner with the approval of the Secretary. (2) Any information thus secured by any official, body, or commission of any State may be used only for the administration of the tax laws of such State, except that upon written request of the Governor of such State any such information may be furnished to any official, body, or commission of any political subdivision of such State, lawfully charged with the administration of the tax laws of such political subdivision, but may be furnished only for the purpose of, and may be used only for, the administration of such tax laws. Any officer, employee, or agent of any State or as authorized in this subsection, or when § 9.54-1 Records and income tax forms. Every person subject to the tax, except persons whose gross income (1) consists solely of salary, wages, or similar compensation for personal services rendered, or (2) arises solely from the business of growing and selling prod-political subdivision, who divulges (except ucts of the soil, shall, for the purpose of enabling the Commissioner to determine the correct amount of income subject to the tax, keep such permanent books of account or records, including inventories, as are sufficient to establish the amount of the gross income and the deductions, credits, and other matters required to be shown in any return under Title I of the Act. Such books or records shall be kept at all times available for inspection by internal-revenue officers, and shall be retained so long as the contents thereof may become material in the administration of any internal-revenue law. Income-tax forms shall be prescribed by the Commissioner and shall be executed and filed in accordance with the regulations in this part and the instructions on the form or issued therewith.*† SEC. 55. Publicity of returns.—(a) Returns made 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; and all returns made under this Act shall constitute public records and shall be open to public examination and inspection to such extent as shall be authorized in rules and regulations promulgated by the President. (b) (1) All income returns filed under this title (or copies thereof, if so prescribed by regulations made under this subsection), shall be open to inspection by any official, body, or commission, lawfully charged with the administration of any State tax law, if the inspection is for the purpose of such administration or for the purpose of obtaining information to be furnished to local taxing authorities as provided in paragraph (2). The inspection shall be permitted only called upon to testify in any judicial or administrative proceeding to which the State or political subdivision, or such State or local official, body, or commission, as such, is a party) any information acquired by him through an inspection permitted him or another under this subsection shall be guilty of a misdemeanor and shall upon conviction be punished by a fine of not more than $1,000, or by imprisonment for not more than one year, or both. § 9.55 (b)-1 Definitions. Any word or term used in this section and §§ 9.55 (b)-2 to 9.55 (b)-5, inclusive, which is defined in the Act shall be given the respective definition contained in the Act.** § 9.55 (b)-2 Copies of income returns. Every person (except nonresident alien individuals, nonresident alien fiduciaries, nonresident foreign partnerships, and nonresident foreign corporations) required to file an income return (including affiliation schedules) under the provisions of section 51, 52, 141, 142, or 187 of Title I, or Title IA, or section 602 of Title III, shall file with the return a copy thereof on a duplicate form on colored paper which will be provided for that purpose. The copy on such duplicate form shall be a complete duplicate of the return as filed except that the affidavits on the duplicate form need not be filled in. There shall be attached to the copy on the duplicate form a copy of any schedule or statement attached to the original return except (1) Schedule H-1 in the case of a corporation return, (2) the copy of the will or trust instrument in the case of a fiduciary return, (3) the power of at |