The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-10-26
DEDUCTION OF TAX
AT INCOME SOURCE
Secretary McAdoo Approves
Regulations Prepared by Com
missioner Osborne.
EFFECTIVE ON NOVEMBER l
Temporary Certificates Carrying
EFFECTIVE ON NOVEMBER
Temporary Certificates Carrying
Part Identification to Be Ac-
ceptcd Till November Is.
Special to The Times .plspatch.l

Special TO The Times -Dispatch.I
Washington. October 25.-Secretary
McAdoo. of the Treasury. to-day APP
proved regulations prepared by Inter
nal Revenue Commissioned Osborn for
the deduction of the income tax at the
source on interest maturing on bonds,
ON notes and other similar obligations
ar corporations. joint stock companies
panies.
The normal tax of per cent under
beginning November J. from all incomes
accruinH and payable TO every CITIZEN
OF the United states. whether residing
at home or abroad, and to every per-
son residing in the United states al
though not citizen when that in
come is derived from interest on bonds
and mortgages. deeds Of trust. or other
similar obligations. equipment. trust
agreements. RECEIVERS certificates of
or associations and insurance com
panies, although such interest does not
amount 10 $4,000. the limit OF income
Excluding from these interest re-
turns are amounts Of Interest derived
or It's possessions. Of a state. city or
county.
The corporation or its paying agent
In tho United States is classed as
debtor under the regulations and
Will be held responsible for this normal
tax return and lis withholding. bank
ing institutions or individuals taking
coupons for collection being relieving
of such responsibility where the
coup; or orders for 5esister;ed in.
of owner ship signed by the owners
Of the bonds from 1which. the coupons
were detached a form for the certi-
1fcets Is prescribed in the regulations.
Where the coupons are not accom-
panied by such certificate the collect
Ing agency shall withhold the tax of
J per cent and shall certify the name
and address OF the owner OF the
coupon or the name and address OF
The pernons presenting such coupons.
Clnims for Exemption.
Tho corporation or Individual paying
the interest on registered bonds must
deduc, tho normal tax before paying
with such corporation or Individual, AT
least thirty days before MARCH, J. In.
each year claims for exemption from
such tax under the exemption clauses
~ the bill This exemption claim shall
he in formal certificate with full de-
scripton OF the bonds.
Organizations not subject to tax on
Interest at the course are required TO
make returns giving full description
OF the bonds and names OF the holders.
Where coupons are not accompanied
by the ownership certificates .he col
lecting agency must file special ser
tihcatc With all coupons or interest
orders with the Collector OF Internal
Revenue for the local revenue district
before the twentieth day or the month
succeeding that in which the ctrtif-
Gates were received by them. Tic tax
shall not be withheld on coupons or
registered interest maturing and pay
able before March !. 1913. although
Collecting agents OF bonds issued in
foreign countries and upon foreign
mortgages and like obligations or from
Dividends of foreign corporations must
obtain license from the Commissioner
OF Internal Revenue and give bond FOR
deduction OF the normal tax.
Endorsement by such agent that the
tax Is withheld VIII relieve from re-
snonsibilLty SUBSEQUENT holders. The