The Oskaloosa herald., 1913-10-30
INCOME TAX PLAN
TOLD BY TREASURY
Details Of New Law Explained
in Statement.
TELLS WHO ARE EXEMPTED
Method Of Collection at Source ss-
planned for Those Who Are Liable
Deductions to Be Made
by Debtors.

Saturday.
They relate to the deduction of the
income tax at the source Of interest
maturing on bonds and on notes and
other similar obligations of corpora
tions, joint stock companies, or as
sociations and insurance companies.
The tax applies to every citizen,
whether residing at home or abroad
and TO every alien residing in the Uni
ted States.
Divisions Made in Rulings.
The regulations cover the following
heads:
When the tax shall be withheld by
the debtor.
When the tax shall be withheld by
the first collecting agency
Payment OF registered interest by
debtors.
Designation of fiscal agencies.
Certificates claiming exemption.
Organizations whose interest cou'
pons are not taxed at the source.
License required for collection of
income from foreign countries.
Penalties for false statements.
Partnerships.
Here are the regulations in part:
Tax TO Be Deducted at Source.
Under the income tax law, enact
ed October 3. 1918, a tax of one per
cent, designated in the law as the
normal tax, shall be deducted at "thte
from all income aCcruing and payable
to
Al. Every citizen of the United
States, whether residing at home or
abroad, and to
(B). Every person residing in the
United States, though not citizen
thereof. which may be derived from
interest on bonds and mortgages. or
deeds of trust. or other similar obi
cations, including equipment trust
agreements. and receivers certificates
Of corporations. joint stock companies
or associations. and insurance com
panies, although such interest does
not amount to $4,000; excepting only
the interest upon the obligations OF
the United States or its possessions.
or a state or any political subdivision
thereof
The term debtor" as hereinbe:ore
used shall be construed to cover all
corporations. joint stock companies
or associations and insurance com
pRnies.
Tax Withheld by Debtor.
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 tor its paying agent in the
United States) which shall deduct the
tax when same is to be withheld. and
no other bank, trust company, bank.
ing firm, or individual taking coupons
for collection, or otherwise, shall
withhold the tax thereon; provided
that all such coupons, or orders for
registered interest, are accompanied
by certificates Of ownership signed by
the owners OF the bonds from which
the coupons were detached.
These certificates shall be in the
forms hereinafter prescribed and a
separate certifi6a'e shall be made out
by each owner Of bonds for the cou-
pons or interest orders for each sep
srate issue Of bonds or obligations OF
each debtor.
Withheld by Collecting Agency.
II, however. the coupons are not &C
companied by certificates as pre-
scribed heretofore, the first bank.
trust company banking firm, or indi-
vidual or collecting agency receiving
the coupons for collection. or other
wise, shall deduct and withhold the
tax and shall attach to such coupons
its own certificate giving the name
and address of the owner of or the
person presenting such coupons If the
owner is not known. with a descrip-
ton Of the coupons also setting forth
the fact that they are Withholding the
tax upon them; whereupon the debtor
shall not again withhold the tax on
said coupons, but in lieu thereof shall
deliver TO the government the certih-
cate of such bank, trust company, etc,
which is Withholding such tax money.
any GOl pOldAlOlls tOlltClluR agency,
or person first receiving from the
owner any interest coupons or orders
for the collection OF registered inter
est, and to whom the certificates
above provided for are delivered,
should require the persons rendering
such coupons or orders for registered
interest to satisfactorily establish
their identity.
A debtor, whose bonds may be reg.
istered. both as TO principal and inter.
est. shall deduct the normal tax OF
one per cent. from the accruing inter.
est on all bonds before sending out
checks for said interest to registered
owners or before paying such interest
upon interest orders signed by the
registered holders OF said bonds until
there shall be filed with said debtor,
or it's fiscal agent land not later than
thirty days prior TO March -. through
whom said interest is customarily
paid. the proper certificates claiming
exemption from liability for said Tar