Salt Lake Telegram | 1932-06-27 | Page 9 | U. S. Explains Rules for Collection of Tax on Bank Checks, Safety Boxes

U U. S. S S Explains Rules for Collection Of Tax on Bank Checks Safety Boxes Regulations re regarding arding the handling of the thc tax on bank checks and leases on safety safet deposit boxes have been re received received re- re from David Burnet commissioner commissioner commissioner commis commis- of Internal revenue at nt Washington Washington Wash Wash- ington D. D C. C and are being distributed to Utah banks by James H. H Anderson Anderson Anderson An An- derson collector of internal revenue hereUnder here Under the thc provisions of the new revenue law a bank banker or trust company Is charged with the duty of f collecting a cent 2 tax on every check draft or order for the payment o of money drawn and presented for payment ray pay ment merit after June 21 the regulations hons say SIY I If the business of leasing of safety deposit boxes is carried on the thc bank is charged under section of the law with the thc additional duty jf f collecting n a tax amounting to 10 per percent percent percent cent of ot the sum paid after June 21 21 for forthe forthe forthe the use after such suc-h date of any safety safet box The tax levy on such checks drafts and orders is not in the form of a stamp tax as was the case under the revenue net act of 1898 but J Is payable by y charging chartin the thc amount of the tax n against any deposit to the thc credit of or orthe the maker or drawer o of the ment The new plan ilan of collecting the tax lax is free from the difficulties at attending attending nt- nt tending the thc purchase and affixing stamps The bank banker or trust company on whom the thc checks arc I drawn is required to prepare and file filea a return of the thc tax monthly to the thc collector of internal revenue I The tax on leases of o safety deposit deposit deposit de de- de- de posit boxes is restricted to any vault safe sate box or receptacle of not more than 40 cubic cubie feet capacity such as is s customarily used for fOI the thc safo safe keeping keeping keeping keep keep- ing and storage e of jewelry and se se- se Any bank or other institution I lion tion engaged in leasing safety is re required required rel re- re qui red to make a n monthly payment I and return the tho tax collected Exemptions on checks cheeks under the new revenue law arc are as ns follows Checks drafts or orders drawn by officers of the United States Slates or ola ofa of ol a state county or municipality or ola ofa of ol a foreign government in their off cial capacities against public funds standing to the official credit and the furtherance of duties imposed upon them by law Mr Anderson explained The Thc tax does docs not attach in case of the withdrawal of money in savings accounts where the Item is reflected as an entry on a passbook held by the th depositor and where the withdrawal is merely merel evidenced by a receipt personally personally per per- tendered to the bank by the thc depositor Mr Anderson Andelson said Coupons relating to bearer bonds bond although payable at a designated bank in the thc United States are not checks drafts or 01 orders for the pa payment ment of ol money within the meaning of or section of the internal revenue law