The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-11-01
INCOME TAX RULES.
TREASURY DEPARTMENT ISSUES
REGULATIONS FOR DEDUC-
TION AT SOURCE.
One Per Cent. VIII BE Collected
Upon All Interest Upon Bonds,
Mortgages, Certificates, Etc.


Department has issued the finally re-
vised regulations for deduction OF the
new income tax at the source of in
terest maturing on bonds. notes and
similar obligations of corporations.
Joint stock companies. classed by the
department under the general term
OF debtor" for the collection pur-
poses.
The regulations embody various
forms OF certificates as to ownership,
exemption. partnership. etc, and are
technical In terms. Because of the
short time allowed for the interpre.
tation OF the law and the issuance Of
these regulations. bringing the date
50 near November 1. when the deduc-
tion must begin. II Is temporarily pro-
vided that on November /, and for
Is days thereafter. interest coupons
presented to a debtor need he ac-
companied only by temporary inform
al certificates.
a tax OF per cent. will be deduct.
ed at the source. beginning next Sat
urday. from all incomes accruing and
payable TO every United States citizen
residing at home or abroad and to
every person residing in the United
income may be derived from interest
upon bonds and mortgages or deeds
OF trust or other similar obligations.
including equipment trusts. trust
agreements and receivers certificates
OF corporations. joint stock companies
as associations and insurance compa-
nies. Government obligations being
excepted. Certificates claiming ex-
tmption may be filed by bond holding
individuals
For the purpose OF collecting this
tax on all coupons and registered in
terest. originating, or payable In. the
United States. the source shall be
the debtor OF It's paying agent In the
United states. which shall deduct the
tar when same Is TO be withheld. and
no other bank. trust company. bank
Ing firm or individual taking coupons
for collection. or otherwise. shall with
hold the tax thereon; provided that
all such coupons or orders for regis
tered interest are accompanied by GER
tincates OF ownership signed by the
owners of the bonds from which the
coupons were detached.
III. however. the coupons are not ac-
companied by certificates as pre-
scribed above. the first bank. trust
company. banking firm or individual
or collecting agency receiving the
coupons for collection or otherwise.
shall deduct and withhold the tax
aad shall attach to such coupons it's
own certificate. giving the name and
address OF the owner OF. or the per-
son presenting such coupon ir the
owner Is not known. with a descrip-
tion OF the coupons. also setting forth
the fact that they are Withholding the
s@@ eRoh hhtiiis WhtituHNIs taic ucDlOT
shall not again withhold the tax on
said coupons, but In lieu thereof shall
deliver To the Government the GER
tifcate OF such bank. trust company,
etc. which Is Withholding such tax
money.
Debtors whose bonds may be reg
istered must deduct the normal tax
Of 1 per cent from the accruing in
terest on all bonds before sending
out checks for the interest to register
ed owners or before paying such in
terest upon interest orders until prop
or certificates claiming exemption are
fled with the debtor or it's fiscal agent.
The tax shall not be withheld, the
regulations provide, on coupons or
registered interest maturing and pay
able before March /. 1919. although
later presented for payment.
All persons. firms or corporations
undertaking for accommodation or
profit (this includes handling either
BY way OF purchase or by collection)
the collection OF coupons. checks OF
bills OF exchange for or in payment
OF Interest upon bonds issued in for
cign countries and upon foreign mort
cages or like obligations. and for
any dividends upon stock or interest
upon obligations OF foreign corpora
tions. associations or insurance com
panies engaged In business i'm foreign
countries. are required by law To OBJ
tain a license from the Commissioner
of Internal Revenue and To give
bond In such amount and under such
conditions as the Commissioner of In
ternal Revenue may prescribe.