Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1913-11-05

said interest, and such certificates
shall describe the bonds and show the
amount Of coupons attached, or the
amount Of interest due such owners
on registered bonds and the full name
and address of the owners and shall
also state whether they claim, or do
not then claim. exemption from tax
alton at the source provided for by
paragraph c of section 2 Of the fed
eral income tax law ($s,000 and, un-
der certain conditions $4,000 as to
the income represented by such cou-
pons or interest.
Not Taxed at Source.
If the owners of the bonds are cor
porattons, joint stock companies, asso-
Citations or insurance companies or
ganized in the United States, no mat
ter how created or organized, or or
CARNATIONS, associations, fraternities,
etc, which are either taxable or ex-
empt from taxation as provided in
paragr aph G, subdivision A, of the act,
the debtor is not required to with
hold or deduct the tax upon income de-
rived from interest on such bonds,
provided coupons or orders for inter-
est from such bonds shall be accom-
panied by certificate of the owners
thereof, certifying to such ownership.
which certificates shall be filed with
the debtor when such coupons or in
terest orders are presented for pay
| ment. 35si. sias t ssS ii d
l. F.. ! : ' : 1. j. L
Disposition Of Certificates.
The debtor, or paying agents, shall
deliver all certificates with the list OF
names and addresses of those for
whom the tax has been withheld, show
ing amounts as required by law, to the
collector of internal revenue for their
district on or before the Goth day of
the month succeeding that in which
said certificates were received by
them. ~ 5s$ "a
The tax shall not be withheld on
coupons. or registered interest, matur-
ing and payable before March i, 1913,
although presented for payment at q
| later date
| All persons, firms or corporations
undertaking for accommodation or
profit (this includes handling either by
way of purchase or collection) the col
lection of coupons, checks or bills of
exchange for or in payment Of interest
upon bonds issued In foreign countries
and upon foreign mortgages, or like
obligations, and for any dividends up
on stock or interest upon obligations
or insurance companies engaged in
business in foreign countries, are re-
quired by law to obtain license from
the commissioner of internal revenue
and to give bond in such amount and
under such conditions as the commits.
sioner Of internal revenue may pre-
| scribe, $3.50 Z. I,
The licensed person, firm or corpo.
ration first receiving any such foreign
items, for collection or otherwise, shall
withhold therefrom the normal tax OF
one per cent. and will be held re.
sponsible therefor. II
The provisions for collection Of the
tax on foreign obligations set forth in
this section Of the regulations includes
the interest upon all foreign bonds
even though the coupons may be, al
| the option Of the holder. payable, in
the United States as well as in some
foreign country.
Failure to obtain license or to com
ply with regulations is punishable by
:a,f1ne not exceeding $4,000 or impris
onment not exceeding one year, OF
both, in the discretion of the court
Such licenses shall continue ! in force
until revoked.
i application for such licenses should
be made to the collectors Of internal
A revenue.
A False Statement Penalty.
I If any person, for the purpose of oh
tanning any allowance or reduction by
virtue of claim for exemption,
either for himself or for any other,
knowingly makes a false statement OF
false or fraudulent representation he
is liable under the act to severe pen
4 alties. $
This tax will not be deducted from
the income which may be derived from
interest on bonds, mortgages equip
1 ment trusts, receivers certificates, 4 OF
other similar obligations of which the
l UOud luz OWASA . az. OAIAACAo " AL
eign countries residing in foreign
countries, provided, That when such in
terest coupons or In cise Of wholly reg.
istered bonds the ordeTsSfor the pay.
ment OF such interest shall be accom-.
panied by duly certified certificates to
cover the cases of foreign and non-res
ident owners of bonds and other Sc
curities.
Unless such proof Of foreign securi.
ties is duly furnished the normal tax
of one per cent shall be deducted.
On or before February 1, 1914, Ger.
tificates Of ownership OF any Of the
bonds from which were detached cou.
pons, may be delivered to the debtor,
and said debtor may thereupon. return
any, sum withheld to which the owner
of such bonds may be entitled under
the law and regulations, upon the facts
disclosed by such ownership certif-
Gates. Any temporary certificates re-
lating to bonds for which certificates
Of ownership shall not have been de-
| livered to the debtor shall on or before
March i, 1914, be delivered to the col
lector of internal revenue.
w. H. OSBORN.
| Commissioner of Internal Revenue.
| Approved, October rs, 1913. 5E
w. G. M'ADOO,
Secretary of the Treasury.