The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1898-12-01
M on BANK oaEoKs
Revenue Ruling Ivy Commissioners Scott
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Collector L. H. Treat. says the New
York Journal OF Commerce, mas reeeiy-
ed letter from firm in this city max
Ing inquiry as to the tax imposed upon
a draft drawn payable to themselves
four months after date and sent 10 the
person upon whom 1t IS drawn to be
accented. Commissioner Scott has
ruled that when the instrument Is
drawn 1t Is subject TO a stamp tax OF
two cents per 800. or fraction thereof.
and must be paid at the time BIZ the
person who draws the instrument
However. II an order for the payment
is embodied In the acceptance, J. e., II
certain bank is ordered 10 pay ana
charge to the account OF the aeceptorr'
or II any other order OF Ike nature is
made, then It IS subject to an additional
tax OF two cents.
There Is Il great deal OF discussion
among the local bankers in reference to
the recent ruling Of the Internal reve-
nue. department that a depositor may
Withdraw money from bank without
paging the tiyo-ceDt check stamp tax II
ne gives an ordinary receipt for II in
stead OF making out regular check.
This ruling was made In answer to IN
ouirles presented by the president OF
the New York Bankers Association,
who has issued this circular 10 mem-
beers:
IMPORTANT TO DEPos1ToRs,
The New York state Bankers Asso-
cIauon.-The following letter explains
Itself, and the decision VIII save much
expense and trouble. especially for
country banks. whose customers uraw
large proportion OF their tunds them-
selves over the bank counter;
Treasury Department. Office OF the
Commissioner OF Internal Revenue,
washington, d. c., Nov. II, lSeS.
Charles Adslt, esq. President New York
state Bankers Association, Hornells
VILE, y. Y
SIR-I have to acknowledge the re-
celpt OF your letter OF November 5, 1888,
In which you request the ruling OF this
Office regarding the liability OF deposl-
tors using unstamped receipts for with
drawing funds from the bank.
In reply, gou are advised that In Hc-
cordance with the advice OF the attOr-
ney-general this office holds that re-
/ celpt given to a bank by a person to
whom the bank Is Indebted rs deposit
| tor or otherwise. or for whom Il holds
/ funds, is not more subject TO stamp
than a receipt given for any other deoi
or demand. The purpose OF the law Is TO
| require stamps upon checks, which are
| commercial, negotiable instruments. a
/ check, however. r. not required TO DC or
| aDg particular form. II Il Is In form
| sufficient 10 constitute an order for the
! payment OF money. and assumes the
| character OF n commercial, negotiable in
gtrument. then It is subject to the tax.
! There Is much banking done. especi-
| nlly In savings banks without the use
! OF checks At all. the deposition having a
! book In which the bank denotes the
| amount deposited on one side and the
| amount drawn on; on the other. or
| course. the deposition IN such cases
| draws the money ont Of the bank. but
| he does It In such way as not to be
! subject to stamp duty, because he does
| not give n check
So. II q person does not give check
! he does not have 60 pay the tax. and II
] he goes to the bank and the bank pays
| him upon It's dues 10 him. aud he gives
! n receipt, such receipt does not require
/ a stamp, but n he issues his receipt 50
| that II win be good IN the hands OF an
/ other person TO draw upon his deposit
/ FOR the amount Of II, then Il loses the
/ character al a receipt and becomes d
/ check or DRAFT. and r. subject 10 tax
Respectfully gours.
" h. SCOTT, Commissioner.
II IA said that the managers of sever
ai OF the iendnN banks have decided 10
request dcroHltors 10 Withdraw their
| accounts rather than be subject to the
annoyance ana delay Of paying out mo-
| neY to Individual dcpOsltors over che
counter on ordinary receipts