OCR Text |
Show MAKER OF NOTE MUST PAY TAX How the income tax on notes given giv-en for Interest, rents and the like shall be collected Is the subject of a set of Instructions lued by the commissioner of Internal revenue to the various collectors throughout the country. In the case of such a note tbe maker W oousldered as the source and Is required by the new law to deduct the normal 1 per cent tax. The instructions follow. "When a note shall have been given giv-en in payment of Interest, rents, or other income accniing after March 1. 1913, the maker of the note, as tho "debtor" and as the "source" where the income originates. Is required In paying such note, to withhold the normal tax of 1 per cent on the entire en-tire amount of th note, if said note is In excess of ?300O. unless a claim shall be mode for exemption of $3000 or ?4000 (as the case may be) under un-der the provisions of paragraph C ; section 2, of the act, and, if such claim for exemption shall bo made (as provided on form 1007) then the! said tax shall be withheld only on the amount of said note In excess of the exemption claimed In said certificate." cer-tificate." "If any person who has purchased I or discounted any of said notes may ! have omitted. In acquiring them ! from previous holder, to niako a deduction de-duction or allowance for said tax. such purchaser can only look for re lief to the person from whom he shall have gotten the notes, and the debtor," the maker of said notes, will bo held liable for and bo required re-quired to deduct, withhold and pay j to the collector of Internal revenue thf amount of the normal tax of 1 per cent, which may bo due there on under the law and these regula tlons." |