The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-10-04

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banker or person who shall sell or
otherwise realize coupons. checks or
bills of exchange drawn or made In
payment of any such interest or divi-
dends (not payable in the United
States), and any person who shall OBJ
tain payment (not in the United
States) in behalf of another of such
dividends and interest by means OF
coupons, checks or bills of exchange,
and also any dealer In such coupons
who shall purchase the same for any
such dividends or interest (not paya-
BILE in the United States), otherwise
than from a banker or another dealer
in such coupons; but in each case the
benefit of the exemption and the de-
duction allowable under this section
may be had by complying with the
foregoing provisions of this para
graph.
Licenses Required.
"All persons. firms or corporations
undertaking as matter of business
or for profit the collection of foreign
payments by means of coupons, checks
or bills of exchange shall obtain
license from the commissioner of In
ternai revenue, and shall be subject to
such regulations enabling the govern
ment to ascertain and verify the due
Withholding and payment of the income
tax required to be withheld and paid
as the commissioner of internal reye-
nue.. with the approval of the secre-
tary OF the treasury. shall prescribe.
and any person who shall undertake to
collect such payments as aforesaid
without having obtained a license
therefor, or without complying with
such regulations. shall be deemed
guilty of a misdemeanor and for each
offense be nned in sum not exceed
ing SIS. 1000. or imprisoned for term
not exceeding one year, or both, In the
discretion of the court,
These sections only relate to the
collection of the normal tax q per
cent?. 1t will be noted that, first. the
law requires that the amounts referred
to shall be withheld from the payment
made to the person entitled to receive
the same, and 1t is this feature of the
law which 1t s desired shall be spe-
cihcaily called to the attention OF those
affected thereby,
The law provides that those charged
with the duty Of withholding this nor
NAL tax upon the payments referred to
shall withhold 1t and pay 1t to the
government, and IL they shall fail TO do
so they shall nevertheless be liable for
the amount of tax which should have
been withheld. The tax so withheld
need not be returned to the govern
ment until after the close of the cur
rent calendar year. and further instruc-
tons will be issued in due time and
forms provided for making returns of
taxes so withheld.
Information for Taxpayers.
q ~ tz 1,-Ix Il -fr rcd
that all persons. corporations. etc,
shall be made aware as far as pos
sible of their duties with respect TO
withholding the normal tax. The Law
does not specify in what manner such
taxes shall be withheld and ii would
appear, therefore. that persons. cor
porations. etc. charged with the duty
of Withholding such tax may adopt
such means and plan of procedure as
will be best adapted TO their particu-
lar business or manner OF conducting
the same.
This Will be evident more particu-
larry in the case of the deduction of
the tax upon salaries or other pay
ments which may be made weekly,
monthly or quarterly. The law spcci-
flcally provides that no liability shall
attach with respect 10 the duty Of
withholding st,efa-tax- for-the year
1913 prior to the passage of the act.
With respect to the licenses for
persons, firms or corporations under
taking as a matter of business or for
profit the collection OF foreign in
terest payments by means of coupons,
checks or bills OF exchange. you are
informed that necessarily such licenses
and the regulations referred to in
the law cannot he prepared prior 10
the passage Of the law.
Therefore, all persons desiring TO
obtain such licenses shall make appli-
cation to the collector of Internal rev
enue for such licenses, registering
their names and addresses and stat
ing the nature of the business in
which they are engaged. and the
licenses will be issued 10 them as soon
as the same can be prepared after
the passage of the act. Such appli-
cation for the license and registration
Of the names and business Will be con-
sidered a sufficient compliance with
the law until the licenses and regula-
lions referred to in the law can be
prepared and isued. The regulations
to which such dealers shall he subject
will also be iesasd at the earliest pes
sible date.
Respectfully.
'W. Fl. OSBORN
Commissioner"