El Paso herald. (El Paso, Tex.) 1901-1931, 1913-10-26
DEDUCT TAX
At SOURCE Of
INCOME
Secretary McAdoo Approves
Plan for Collection of nj
come Tax.
COLLECTIONS WILL
BE STARTED NOV. 1

W ASHINGTON, D. c., Oct. 25.-
w Secretary McAdoo today ap-
proved regulations prepared by
the Internal Revenue commission for
the deduction of the income tax at the
source of interest maturing on bonds,
on notes and other similar obligations
of corporations. joint stock companies
or associations and Insurance COM
panies.
The normal tax of one percent under
the law is to be deducted at the source,
beginning November l. from all in
comes aceruing and payable to every
citizen of the United States, whether
residing at home or abroad and to
every person residing in the United
States. although not a citizen when
that income is derived from interest on
bonds and mortgages, deeds from In
terest on bonds and mortgages, deeds
Of trust or other similar obligations.
equipment, trust agreements, receivers
stock companies or associations and in
surance companies, although such in
terest does not amount to $4,000, the
limit of income exemption.
Excluded from these interest returns
are amounts of interest derived from
obligations of the United States or its
possessions or state. city or county.
Paying Agents Held Responsible.
The corporation or its paying agent
in the United States is classed as
debtor under the regulations and will
be held responsible for this normal tax
return and its withholding-bank in
situations or individuals taking cOu-
pons for collection, being relieved OF
such responsibility where the coupons
or orders for registered interest are ac-
companied by certificates of ownership,
signed by the owners of the bonds
from which the coupons were detached.
sas- sf,s,1
in the regulations
Where the coupons are not accom-
panied by such certificate, the collect
ing agency shall collect the whole tax
of one percent and shall certify the
name and address of the owner Of the
coupon or the name and address of the
person presenting such coupons.
Must Deduct Normal Tax First.
The corporation or individual paying
the interest on registered bonds must
deduct the normal tax before paying
the interest until theer shall be filed
with such corporation or individual at
least 80 days before March l, in each
year. claims for exemption from such
tax under the exemption clauses.
This exemption claim shall be in
formal certificate with the full de-
scription of the bonds.
Organizations not subject to tax on
interest at the source are required to
make returns giving full description
Of the bonds and names of holders
Where coupons are not accompanied
by the ownership certificates, the coll
Letting agency must file a special GER
tficate with all coupons or interest or
derS with the collector of internal rev.
enue of the local revenue district be-
fore the goth day of the March sue
eeeding that in which the certificates
were received by them. The tax shall
not be withheld on coupons or regis
tered interest maturing and payable
before March l. 1913, although pre-
scented for payment at a later date
Bonds Issued in Foreign Lands.
Collecting agents of bonds issued in
foreign countries and upon. foreign
mortgages, or like obligations or OF
dividends from foreign corporations.
must obtain a license from the COM
missioner of internal revenue and give
pond for deduction of the normal tax
endorsement by such agent that the
TAX IS withheld will relieve from re-
sponsibility subsequent holders
The collecting agent must file with
the district collector of internal rev.
enue list of the taxable persons, the |
amount of the tax deducted and from
what source collected