The Ontario Argus. (Ontario, Or.) 1???-1947, 1914-01-22
Get INCOME TAX J
"AT The SOURCE"
Treasury Department Issues
Regulations.
DATES FROM NOV. |, 1918.

Rules Adopted For Deduction From
Interest Maturing on Securities,
Such as Bonds, Mortgages, Deeds OF
Trust and Similar Obligations.
Penalties For Evasions.
Persons who receive annual incomes
amounting to more than $4,000 tin tho
case of single persOnsJ or more than
$4,000 Din the case OF married persons,
are concerned In the first pronuncia-
mento of the government. issued by
the treasury department ut Washing
ton, In regard to the income tax. 9th
or instulments Of the regulations are
to come from time to time, as the pub
lie digestion demands The regulations
deal altogether with the collection of
the tax at the source OF incomes from
interest on bonds mortgages. deeds OF
trust and similar obligations.
The regulations embody various
forms of certificates rs to ownership.
exemption. partnership. etc. and arc
technical In terms Because OF the
short time allowed for the interpreta-
tion of the law and the Issuance OF
these regulations, bringing the date so
near Nov. |. when the deduction
must begin. II was temporarily provid-
ed that on Nov. l. 1913. and for fifteen
days thereafter. interest coupons pre-
panied only by temporary informal
certificates.
One Per Cent Deducted.
A tax OF per cent will be deducted
at the source dating from Nov. 1, from
all income accruing and payable to
every United States citizen residing ut
home or abroad. and to every person
residing In the United States. though
not citizen. which Income may DO
derived from interest upon bonds and
mortgages or debts OF trust or other
similar obligations. including equip
mcnt trust agreements and receivers
certificates OF corporations. Joint stock
companies or associations and In. .
suruncc companies. although such In
tcrcst does not amount 10 $1,000. gov
ernmcnt obligations being excepted.
Certificates claiming exemption may
he illcd by bondholdlng individuals,
There are detailed provisions TO
guard against duplication of the with.
holding Of the tax, The coupons or
registered interest must be accom-.
panied by certificates of ownership
signed by each holder OF bonds for
each separate issue Of bonds or obllgn.
tlons OF cach debtor. II the coupons
are not accompanied by the prescribed
certificates the FIRST bank or collecting
agency receiving the coupons for col.
lection or otherwise shall deduct and
withhold the tax and attach 10 the
coupons its own certificate. with do.
scrlptiye memoranda.
Debtors whose bonds may be- regis.
tered must deduct the normal tax Of I
per cent from the nccrulng interest ON
all bonds before sending out checks
for the Interest 10 registered owners or
before paying such interest upon inter.
est orders until proper certificates
exemptions are flled with tho
debtor or It's fiscal agent,
The tax shall not be withheld. tho
regulations provide. on coupons or
registered Interest maturing and paya-
BILE before March |. 1913. although lat.
er presented for payment
Licenses For Collecting Concerns.
Az persons. firms or corporations un-
1crtaklng for accommodation or profit
the collection Of coupons, checks or
bills of exchange for payment OF inter
est or dividends upon foreign obllga-
lions must obtain n license from the
Internal revenue commissioner aud
give bond, These licenses first recely-
ing foreign Items for collection win
the per cent tax and In
lorsc that fact 10 relieve subsequent
holders or purchasers from withhold
ng the tax.
Failure to obtain license or comply
With the regulations Is made punshu-
Die by n $1,000 maximum fine or one
'ear maximum Imprisonment or both.
There are severe penalties for know
ngly muking false statements or mis-
to obtain any allow
nee or reduction for oneself or any
'thcr person.
Nonresident foreigners are not sub
Get 10 taxation on income from inter
81 hearing bonds II they furnish pro.
,cr certificates