The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-11-06

turn or statement with intent to de.
feat or evade the tax:
A fine of not exceeding $4,000 or i'm
prisonment not exceeding one year, OF
both at the discretion of the court, with
costs of prosecution.
Regulations regarding the deduction
at the source of the normal tax of !
per cent of income of individuals other
than income derived from interest up
on bonds and mortgages or deeds Of
trust or other similar obligations OF
corporations, joint stock or
associations and insurance companies,
under the provisions of section 2 Of the
act of Oct. 8, 1918:
The source" in these regulations
shall be construed as referring to the
place where the income originates.
By whom the normal tax shall be de-
Quoted and withheld:
All persons, firms, etc, mentioned in
referred to as withholding agents."
namely, partnership companies, corpo"
%rations, joint stock companies or asso-
Citations, insurance companies, in what
ever capacity acting, including l~essees,
mortgagors for real or personal prop
erty, trustees acting in any trust ca
pacity, executors, administrators.
agents, receivers, c~onserVators, employ
I erS and all officers and employees Of the
United States having the control, re-
ceipt, custody, disposal or payment OF
interest Except income derived from
interest upon n and mortgages, OF
NSSNo - ~ hola u AAS II 1 u
tions' of corporations, upon which the
normal tax of 1 per cent has otherwise
been withheld at the source, as provid-
ed by these ~regulations), rent, salaries,
wages, royalties, taxable annuities,
emoluments, or other fixed and determ-
Unable gains, profits and income of an
other person, exceeding $4,000 for any
taxable year, except as hereinafter pro.
vided, shal deduct and withhold from
such annual gains, profits and income
such sum as will be sufficient to pay
the normal tax Of l per cent imposed
thereon by section 2 of this act, and
shall make a lawful return and pay the
taxes so withheld to the collector Of in
ternal revenue for the district in which
said withholding agent resides or has
| his, her or its principal place of bust
ness.
The normal tax of 1 per cent shall be
thus withheld from all incomes derived
from liked annual periodical rent of
realty of personality, interest Except
as herein otherwise provided), salaries,
royalties, taxable annuities and other
fixed annual periodical income exceed.
ing $4,000.
Items Upon Which Tax Is Not to BE
Withheld at the Source.
% Dividends on capital stock, or
from the net earnings of corporations
and joint stock companies or associa-
tlons and insurance companies subject
TO like tax, when said withholding
agents are required to make and rem
| "Sh " i SluII III DSIdII OIL. announcer. as
provided herein, to the collector or his
her or it's district.
CD Proceeds of life insurance poll
cles paid upon the death Of the person
insured or payments made by or cred
TIED to the insured, on life insurance
endowment, or annuity contracts, upor
the return thereof to the insured at the
maturity Of the term mentioned In the
contract, or upon the surrender Of con
tract--alt of which shall not be includ.
ed as income under this law but this
shall not be construed to exempt sale
insurance companies from withholding
and paying the normal tax of / pei
cent on interest income paid by insur.
ance companies to beneficiaries OF pol.
1cles when said interest exceeds $4,000
CD, Income of an individual which
is not fixed or certain and payable a.
stated periods, or is Indefinite or ir,
regular as to amount or time of accru.
al, shall not be withheld at the source
put shall be returned nj the tax shall
be patd thereon by the Individual,
Income derived from the FOLLOWING
professions and vocations come under
his head:
Farmers. merchants, agents compen,
stated on the commission basis, lawyers
doctors, authors, inventors and othe,
professional persons.
Such persons shall mak personal re.
turn on all their income, provided thei1
$4,000.
For example when a lawyer receive
q retainer Of $4,000 as a special fee
deduction therefrom shall not be mad
ceiyes a retainer Of $1,000 per annum
and the exemption claimed Is $4,000
Il $4,000 of such income would be taxet
n the tax retained at the source. q
900, $1,000Sof such income would bestax
ed, and the tax withheld OF the source
90 The value of property acquiret
by gift bequest, devise or descent.