CODIFICATION OF INTERNAL REVENUE LAWS 60 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 bankruptcy or in receivership. (k) ALLOCATION OF INCOME AND DEDUCTIONS. - For allocation of income and deductions of related trades or busi- nesses, see section 45. SEC. 142 . FIDUCIARY RETURNS. (a) REQUIREMENT OF RETURN. - Every fiduciary (except a receiver appointed by authority of law in possession of part only of the property 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 deduc- tions and credits allowed under this chapter and such other informa- tion for the purpose of carrying out the provisions of this chapter as the Commissioner 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 hus- band 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. (b) JOINT FIDUCIARIES. - Under such regulations as the Commis- sioner with the approval of the Secretary may prescribe a return made by one of two or more joint fiduciaries and filed in the office of the collector of the district where such fiduciary resides shall be sufficient compliance with the above requirement. Such fiduciary shall make oath (1) that he has sufficient knowledge of the affairs of the individual, estate, or trust for which the return is made to enable him to make the return, and (2) that the return is, to the best of his knowledge and belief, true and correct. (c) LAW APPLICABLE TO FIDUCIARIES.-Any fiduciary required to make a return under this chapter shall be subject to all the pro- visions of law which apply to individuals. SEC. 143. WITHHOLDING OF TAX AT SOURCE. (a) TAX-FREE COVENANT BONDS.- (1) REQUIREMENT OF WITHHOLDING.-In any case where bonds, mortgages, or deeds of trust, or other similar obligations of a corporation, issued before January 1, 1934, contain a contract or provision by which the obligor agrees to pay any portion of the tax imposed by this chapter upon the obligee, or to reimburse the obligee for any portion of the tax, or to pay the interest without deduction for any tax which the obligor may be required or per- mitted to pay thereon, or to retain therefrom under any law of the United States, the obligor shall deduct and withhold a tax equal to 2 per centum of the interest upon such bonds, mortgages, deeds of trust, or other obligations, whether such interest is pay- able annually or at shorter or longer periods, if payable to an individual, a partnership, or a foreign corporation not engaged in trade or business within the United States and not having any
�
