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Show INCOME TAX LAW APPLIES TO BANKS feature of the operation of the incom? tax law which will probably have au effect uVou local banking houses hou-ses In the near future when the operation op-eration of the law Is more fully un der way is the license provision. cording to instructions to Internal revenue rev-enue officers from the United States treasury department, "all persons firms or corporations undertaking for accommodation or profit (this In eludes handling either by purchase or collection) collection of coupons checks, bills of exchange etc., for or in payment of interest upon bonds issued in foreign count rie and upon foreign mortgages or like obligations and for any dividends upon stock or Interest upon obligations of foreign corporations, associations or innur ance companies engaged in business m furolgn lountries, are required by law to obtain a license from the i ouv miaeloner of internal revenue and may be required to give bond in such amount and under such conditions is the commissioner of internal revenue ma prescribe." The licensed firm first receiving any such foreign item for collection ir I otherwise is required to withhold th" normal tax of 1 per cent and the government gov-ernment will hold the firm responsi ble for it. The instructions require that the firm shall indorse the Item with the words Income tax withheld by." and follow with the name and address of the corporation. This will I be considered as sufficient evidence lo relieve subsequent holders or purcha sers of such items from the duty of also withholding the income tax. Such licensed firms ar required by I the law to collect a list of the names and addresses of persons from which such foreiKn ltms are received and furnish the list, not later than the 20th of he succeeding month after that of collection, to tile Internal revenue rev-enue collector Such records must be open at all times to the Inspection of Internal revenue officers Bond Is Required. Applications for such licenses should be made to the collectors of internal revenue for the district and will ba Issued without cost to such persons! or corporations as the commission? approves, upon the filing of the bond! rpqulred by the commissioner. Tbq Instructions from the treasury depart ment further Htate that the filing of an application for such s license, ac com pan led by a proper surety bond, when both have heen approved by the collector, will be considered sufficient compliance with the law to enable applicants ap-plicants to do business until February 1, 1914, without Incurring the penalties penal-ties provided by law for failure to procure the required license. The penalty for failure to procure a license or comply with these regulations Is punishable by a fine not exceeding $5000 or Imprisonment not exceeding one rear, or both. The licenses will continue in force until removed It Is believed that rurther Instructions Instruc-tions regarding the forms of certifi crips to be filed out and signed by persons affected by the law will be issued soon by the collector for this i district Recent instructions of the treasury department provided that the forms prescribed In the law would not be required until after November 15 A temporary form was prescribed for use until that time. Since that limit has expired it Is considered probable that forms or at least models of i hem will be distributed in the near future. |