OCR Text |
Show FOB TAXCGLLECTIONS Bureau of Internal Revenue lo Begin Work of Distribution Distri-bution Next Week. V'.!ir.v;TON', F'-b. I. P.-?ulations -oveniini; :t m mM la rion of 'tin- pcr.sonal and icji pi .i :it ion oiue tn: were corn-i!r-tc I r .. I : i hy the niireau of internal iv:iiiii- and will he i.-ii'iy for di.-tribu- lioil r-:i I ; - n'-vr. cr-.-k. Mo.Ht ot' tile provi-the provi-the :-::imi a- ilio---.: c-ovf-r ins t he In. onio tax. Tli.; question of tnven-toii.i' tnven-toii.i' i.i Ifit mi. ii Lo l;(i covered by a spc- 'Inl I''".; M l;i I ion later. Aiimi,;; lii- more important new reu-l.-moMK aif il);. rH-itins lo livl.Ieii1. i. -in. Hon iii ih.; n,Kf. of oil, gas an'! mm-in- nio-p.-ii k'.s .in. I i.avments frum de-pi-f. ;i;u,(i ;.n. I i.-..Hion leM-rvcs. Tin- rnllim on ilivlrlimds. In suh-si suh-si ;i ii..-," i-.uh ;i n ot'll.-iiil ni'imoranduin on III - r,-.:iil.-ilioiis, "Is tliut dividends paid Online I'.li vill I..- dr-m.-d lo have hesn i.,,:-l horn :ii; earnings if sn.-h earnineR -( i-i 1 1 i-r Iho vtar wfrv p renter than the dividends distill. iit-d. unless the corporations corpora-tions show llial hi the time of riistrlbu-llon riistrlbu-llon of iiny pi-rtn-iilm- dividends the earnings earn-ings w.-re not Miifri.-h-nf lo cover. "A new nihn-,' an an alleniatlve to the evisi in-.,' one ha:; heen provided for cotn-mitiiiL, cotn-mitiiiL, i h" amount necessary to reli-rn canilnl iti-eslc,i in riil and f-'as wells, t'ne rill.- hi Iiil- laed upon an estimate of the nuns conlalncil In the property, and fee ouncts and lessees are placed upon the s. Imsis in so far as bonuses have a.-lnalh- heen pa.id for leases. "With regard to inhibit,' corporations, il is stal.-.l that in passing on values set up as of March I, mi:., as a basis for ih-nlclion. the department will frivc due ve-nln to market quotations of capital sue l us of that date and to values stated hv Hie corporations in their capital stock rciiinis. "It is held that dividends paid out of depletion or depreciation reserves are in ihe nature of a linuid:i t ion dividend and an- a return of capital to the stockholders aid not taxable us income. Such dividends divi-dends will not he .so regarded, however, nnliss (he income and surplus have been tirsl distributed and the fact that their capital has In en reduced or partly relumed re-lumed is made public in their published sin i ein.-n : s. "l'rovisinn has also been made re-vcisms re-vcisms n previous rulinp: and holding as lo stock returned to corporations upon reoiaianizatlon for purposes of resale to rai-e working capital, that, the proceeds when sold shall not he treated as income. ". provision of former ' rulings that forgiven debts constilute income to the dt-htor has also heen stricken out." |