Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-10-26
GET INCOME TAX
AT THE SOURCE"
Regulations Adopted for De-
duction From Interest Ma
turing on Securities.
ONE PER CENT COLLECTED.
BEGINNING NOV. l, 1913
Bonds, Notes and Similar 0bliga-
lions of Corporations and Joint
Stock Companies Listed.

The Treasury Department last night
issued the finally revised regulations FOR
deduction OF the new Income tax ut the
source on interest maturing on bonds.
notes and similar obligations OF corpora
tons, joint stock companies or associa-
tons and insurance companies. ciassed
by the department .under the general
term of debtor for the collection nlr-
poses. The PRONUNCIATION OF the regua-
tons followed an all-day series of COLI
ferences between Secretary McAdoo aud
his assistants
The regulations embody various forms
OF certificates as to ownership. exemption
partnership. etc, and are technical IN
terms. Because o. the short time al
lowed for the Interpretation of the Law
and the issuance of these regulations.
bringing the date near November
when the deduction must begin. il is
temporarily provided that on November
!. 1913 and for fifteen days thereafter
interest coupons presented to debtor
need be accompanied only. by temporary
informal certificates.
One Per Cent Deducted.
A tax of l per cent will be deducted at
the source, beginning next Saturday.
from all income accruing and payable
at home or aoroad and to every person
residing in the United States though
not a citizen. which income may be de-
rived from interest upon bonds and
mortgages or debts of trust or other
similar obligations. ;ncudrng equipment
trust agreements, and re eiSers eertif-
Gates of corporal ons. joint stock com
panies or associations and insurance
companies. although such interest does
not amount to S3on, government OBJ
legations being excepted. Cert ticates
claiming exemption may Ice filed by
bond holding individuals.
There are detailed provisions 10
guard against duplication of the with
holding of the tax. The coupons or
registered interest must be accom-
panied by certificates of ownership
signed by each holder OF bonds for
each separate issue OF bonds or oblIga~
tions of each debtor. IL the coupons
are not accompanied by the prescribed
certificates the first bank collecting
agency receiving the coupons for col
lection or otherwise shall deduct and
withhold the tax and attach TO the
coupons it's own certificate, with de-
scriptive memoranda
Interest on Registered Bonds.
Debtors whose bonds may be registered
must deduct the normal tax of one per
cent from Tie dctfulHE oh as
bonds before sending out checks for the
interest to registered owners or before
having such interest upon interest orders,
until proper certificates claiming exemp-
tons are filed with the debtor or its ms
cal agent.
The tax shall not be Withheld, the reSu-
lations provide, on coupons or registered
interest maturing and payable BEFORE
March 1. 1913. although later presented
for payment
AL persons, firms of corporations un
dertaking for accommodation or pront
the collection of coupons, checks or
bills of exchange for payment of inter
est or dividends upon foreign osnsa-
lions must obtain a license from the
internal revenue commissioner and give
bond. These licenses first receiving Tor
eign items for collection VII withhold
the I per cent tax and iudorse that
fact to relieve subsequent holders or
purchasers from Withholding the tax
Penalty for Dereliction.
Failure to obtain license or comply with
the regulations is made. punishable by
s.. 900 maximum fine or one year maximum
Imprisonment. or both. There are severe
penalties for knowingly making false
statements or Misrepresentation to OBJ
tain any allowance or reduction for him.
self or any other person.
Nonresident foreigners are not subject
To Taxation on income from interest-pear-
ing bonds if they furnish proper GER
tificates.