PUBLIC LAWS-CH. 289-MAY 28, 1938 Corporations deriv- ing income from United States posses- sions. Post, p. 632. Subsidiary formed to comply with for- eign law. Suspension of run- ning of statute of limitations. Post,p . 535. Post,p . 640. Receivership cases. Ante, p. 46 . Allocation ofincome and deductions. Ante, p. 474. (g) CORPORATIONS DERIVING INCOME FROM POSSESSIONS OF UNITED STATES.- For the purposes of this section a corporation entitled to the benefits of section 251, by reason of receiving a large percentage of its income from possessions of the United States, shall be treated as a foreign corporation. (h) SUBSIDIARY FORMED TO COMPLY WrIT FOREIGN LAw. - In the case of a domestic corporation owning or controlling, directly or indirectly, 100 per centum of the capital stock (exclusive of directors' qualifying shares) of a corporation organized under the laws of a contiguous foreign country and maintained solely for the purpose of complying with the laws of such country as to title and operation of property, such foreign corporation may, at the option of the domestic corporation, be treated for the purpose of this title as a domestic corporation. (i) SUSPENSION OF RUNNING OF STATUTE OF LIMITATIONS. - If a notice under section 272 (a) in respect of a deficiency for any taxable year is mailed to a corporation, the suspension of the running of the statute of limitations, provided in section 277, shall apply in the case of corporations with which such corporation made a consolidated return for such taxable year. (j) RECEIVERSHIP CASES.- If the common parent corporation of an affiliated group making a consolidated return would, if filing a sepa- rate return, be entitled to the benefits of section 13 (e), the affiliated group shall be entitled, to the benefits of such subsection. In all other cases the affiliated group making a consolidated return shall not be entitled to the benefits of such subsection, regardless of the fact that one or more of the corporations in the group are in bank- ruptcy or in receivership. (k) ALLOCATION OF INCOME AND DEDUCTIONs.- For allocation of income and deductions of related trades or businesses, see section 45. Fiduciary returns. SEC. 142 . FIDUCIARY RETURNS. Requirement of re- turn. Net income of $1,000 or over, if single, etc. Married, etc., with net income of $2,500 or over. Gross income of $5,000 or over. Estates with $1,000 net income or over. Trusts with $100 net income or over. Estate, etc., gross Income of $5,000 or over. Nonresident alien beneficiary. (a) REQUIREMENT OF RETURN. -Every fiduciary (except a receiver appointed by authority of law in possession of part only of the prop- erty of an individual) shall make under oath a return for any of the following individuals, estates, or trusts for which he acts, stating specifically the items of gross income thereof and the deductions and credits allowed under this title and such other information for the purpose of carrying out the provisions of this title as the Commis- sioner with the approval of the Secretary may by regulations prescribe- (1) Every individual having a net income for the taxable year of $1,000 or over, if single, or if married and not living with husband or wife; (2) Every individual having a net income for the taxable year of $2,500 or over, if married and living with husband or wife; (3) Every individual having a gross income for the taxable year of $5,000 or over, regardless of the amount of his net income; (4) Every estate the net income of which for the taxable year is $1,000 or over; (5) Every trust the net income of which for the taxable year is $100 or over; (6) Every estate or trust the gross income of which for the taxable year is $5,000 or over, regardless of the amount of the net income; and (7) Every estate or trust of which any beneficiary is a non- resident alien. 510 r52 STAT.
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