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Page:United States Statutes at Large Volume 61 Part 1.djvu/364

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PUBLIC LAWS-CH. 258-JULY 16, 1947 not be included in computing net income for the period in which falls the date of the taxpayer's death, but such amounts shall be included in the income of the person receiving such amounts by inheritance or survivorship from the decedent. SEC. 3 . PERIOD FOR WHICH DEDUCTIONS AND CREDITS TAKEN.- The deductions and credits provided for in this article shall be taken for the taxable year in which "paid or accrued" or "paid or incurred", dependent upon the method of accounting upon the basis of which the net income is computed unless, in order to clearly reflect the income, the deductions or credits should be taken as of a different Death of taxpayer. period. In the case of death of a taxpayer on the cash basis, no amount will be allowed as a deduction which was accrued up to the date of the taxpayer's death; and on the accrual basis, no amount (except amounts includible in computing a partner's net income) accrued only by reason of the death of the taxpayer shall be included in computing net income for the period in which falls the date of the taxpayer's death but such amounts shall be deductible by the estate or other person who paid them or is liable for their payment. SEC. 4 . INSTALLMENT SALES.-I f a person reports any portion of his income from installment sales for Federal income-tax purposes under 53 Stat. 4. section 44 of the Federal Internal Revenue Code and as the same may 26U.S.C. 4. hereafter be amended, and of such income is subject to tax under this article, he may report such income under this article in the same manner and upon the same basis as the same was reported by him for Federal income-tax purposes, if such method of reporting is accepted and approved by the Commissioner of Internal Revenue. SEC. 5 . INvENToRIE.r -Whenever in the opinion of the Assessor the use of inventories is necessary in order to properly determine the income of any taxpayer, inventories shall be taken by such tax- payer upon such basis as the Assessor may prescribe as conforming as nearly as may be to the best accounting practice in the trade or business and as most clearly reflecting the income. SEC. 6. ASSESSOR MAY REJECT METHOD OF AOCOUNTING EMPLOYED BY TAXPAYER.- Notwithstanding any other provisions of this article, the Assessor is hereby authorized to reject any return of income reported on a cash basis where, in his opinion, the net income of the taxpayer is not properly reflected and cannot be determined on such basis, and to require the return to be filed on such a basis as in his opin- ion will properly reflect the net income of the taxpayer. TITLE V-RETURNS SEC. 1. (a) FORM OF RETURNs.- The Assessor is hereby authorized and directed to prescribe the forms of returns. All returns required under this title shall be filed on the forms and in the manner prescribed by the Assessor. (b) TAXPAYER To MAKE RETURN WHETHER FORM Is SENT OR NOT.- Blank forms of returns of income shall be supplied by the Assessor. It shall be the duty of the Assessor to obtain an income-tax return from every taxpayer who is liable under this article to file such return; but this duty shall in no manner diminish the obligation of the tax- payer to file a return without being called upon to do so. (c) INFORMATION RETruRNs.- Every person subject to the jurisdic- tion of the District in whatever capacity acting, including receivers or mortgagors of real or personal property, fiduciaries, partnerships, and employers making payment of dividends, interest, rent, premiums, annuities, compensations, remunerations, emoluments, or other income to any person subject to tax under this article, shall render such returns thereof to the Assessor as he may by rule prescribe. 340 [61 STAT.