Show I I II I I I I I CONTRACTS FOR PUBLIC WORK ORK HELD TAXABLE Collector of Internal Revenue Reve nue Shows Such Income Not No r Tax x Exem Exempt t C Corporations Corporations Cor Cor- r. r por to File Return A question having arisen as to the taxability of of Income received Irons from contracts with the state or with counties counties counties coun- coun coun coun- ties municipalities or school districts whether for special services construction construction construe construe- tion of buildings roads etc or other special work and for all ll services no noI not coming under the classification of of officers officers officers of- of and not giving continuous continuous continuous con con- service Collector of Internal Revenue James H. H Anderson calls at attention attention attention at- at to the fact that such Income must be and where in excess of exemptions and deductions allowed by law is taxable The collector also further quotes this additional item of 01 the the- departments department's regulations relative to the same general subject Any profit prot received from a state or political thereof the by an independent independent in in- dependent contractor is taxable In In- In come Where warrants are issued bia by bi bya a city town or other political subdivision subdivision subdivision sub sub- division of a state and are accepted by the contractor in payment for publIc public public pub pub- lic work done the fair market value of ot such warrants should be returned as income If for any reason the contractor contractor contractor con con- I tractor upon conversion of the warrants warrants warrants war war- rants into cash does not receive and cannot recover the full value of the warrants so returned he may allowably allowably allowably allow allow- ably deduct from gross Income for the year In which the warrants are converted converted converted con con- into cash any loss sustained and if he realizes more than the value of the warrants so returned he should Include such amount in his gross income income in irs- in- in I come of the year in which realized Mr Anderson also called attention to tc the fact tact that while corporation final tax returns may be delay delayed delayed- d in filing flUng until June 15 corporations must make snake a tentative return by March 15 He said that inasmuch as the making ola 01 ol a tentative return would probably prove as difficult as the final return corporations might as well wen make theis final returns returnS' by March 15 A penalty will be Imposed on all corporations falling to make the tentative retura by March 15 |