(10) Internal-revenue officers will from time to time take samples of the sugar solution and of the mash, sterilize and forward the same to this office in the usual manner for examination. W. H. OSBORN, Commissioner of Internal Revenue. Approved: BYRON R. NEWTON, Acting Secretary of the Treasury. (T. D. 2374.) Income tax. Provision for nonresident alien corporations, etc., to claim exemption from withholding normal income tax at source of income in the United States under the act of September 8, 1916. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., September 28, 1916. To collectors of internal revenue: Under the act of September 8, 1916, the normal income tax is to be withheld at sources of income in the United States from the income of nonresident alien firms, copartnerships, companies, corporations, joint-stock companies or associations, and insurance companies "not engaged in business or trade within the United States and not having any office or place of business therein." The income of such nonresident alien corporations, etc., which is subject to the withholding provisions of the law is that derived from "interest on bonds and mortgages or deeds of trust or similar obligations of domestic or other resident corporations, joint-stock companies or associations, and insurance companies," regardless of amount. And likewise the withholding provisions of the law "shall be made applicable to income derived from dividends upon the capital stock or from the net earnings of domestic or other resident corporations, joint-stock companies or associations, and insurance companies by nonresident alien companies, corporations, joint-stock companies or associations, and insurance companies not engaged in business or trade within the United States and not having any office or place of business therein," regardless of amount. Including and from and after September 9, 1916, and to and including December 31, 1916, the normal income tax will be withheld from such income at the rate of 1 per cent on the amount thereof. Including and from and after January 1, 1917, the normal income tax will be withheld from such income at the rate of 2 per cent on the amount thereof. To enable debtor corporations, etc., in the United States to distinguish between nonresident alien corporations, etc., which have and those which do not have "any office or place of business" in the United States and also to enable such nonresident alien corporations, etc., as have an "office or place of business" in the United States, to claim exemption from withholding of the normal income tax at the source on their income from sources within the United States, as specified by the statute, a certificate will be provided in the following form: Form 1086 OWNERSHIP AND EXEMPTION CERTIFICATE-NONRESIDENT ALIEN (For use of nonresident alien firms, corporations, etc., having an "office or place of busi- I hereby declare that the firm or organization named below (of which I am a member or officer) is the owner of the bonds or stock from which the above-described income was derived, and that said firm or organization has an office or place of business in the United States, and that under the provisions of the income tax law said income is not subject to having the income tax withheld at the source of the income, and that all the information given herein is true and correct. (Full post-office address in United States of firm, etc.) The certificate herein provided for shall be printed on yellow paper, and shall be in size 8 by 3 inches, and shall be printed to read from left to right along the 8-inch dimension. The paper upon which the certificate is to be printed shall correspond in weight and texture to white writing paper 21 by 32, about 40 pounds to the ream of 500 sheets. Individuals or organizations desiring to print their own certificates may do so, but certificates so printed must conform in size and be printed in similar type and upon the same color, shade, and weight of paper as used by the Government. Until such certificate shall be printed and distributed, nonresident alien corporations, etc., having an "office or place of business" in the United States will use income-tax certificates 1001, revised, and 1063. The address given on such certificates shall be that of the "office or place of business" in the United States of such nonresident alien corporation, etc. There shall be stamped in bold type on the face of these certificates in the blank space below the date line on the certificates "Nonresident alien corporations, etc., having an office or place of business in the United States." The normal income tax on the character of income herein specified and payable to nonresident firms, copartnerships, corporations, etc., will be deducted, withheld, and paid to the proper officer of the United States Government authorized to receive it, unless the corporation, etc., entitled to the payment shall file a certificate (under penalty for false claim) in form and as herein provided, and only those nonresident firms, corporations, etc., which have an "office or place of business" in the United States can use the certificate herein provided to be used. The corporations, etc., which are permitted to use the certificate herein provided are required to make and render a return of income to the collector of internal revenue for the district in which they have their office or place of business, as provided by the act of September 8, 1916. Amendment to section 3225, Revised Statutes, by the act of September 8, 1916. Burden of proof in suits to recover taxes collected under second assessment. Section 3225, Revised Statutes, does not apply to statements or returns regarding depreciation of oil or gas wells and mines. TREASURY DEPARTMENT, September 30, 1916. SIR: Referring to your letter of the 18th instant, in regard to the decision in the case of Camp Bird (Ltd.) v. Howbert, relative to burden of proof under section 3225, Revised Statutes, published in T. D. 2366, your attention is called to an amendment made to section 3225, by the act of September 8, 1916, section 14, subsection (d), as follows: But this section shall not apply to statements or returns made or to be made in good faith under the laws of the United States regarding annual depreciation of oil or gas wells and mines. Respectfully, DAVID A. GATES, Acting Commissioner of Internal Revenue. UNITED STATES ATTORNEY, New York. (T. D. 2376.) Amendment to definition of peddler of tobacco. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., October 3, 1916. The following act, entitled "An act to amend subsection eleven of section thirty-two hundred and forty-four, Revised Statutes," approved September 7, 1916, is published for the information of internal-revenue officers and others concerned. DAVID A. GATES, Acting Commissioner of Internal Revenue. [Public No. 262-64th Congress-S. 5987.] AN ACT To amend subsection eleven of section thirty-two hundred and forty-four, Revised Statutes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection eleven of section thirtytwo hundred and forty-four, Revised Statutes, be amended by adding at the end of said subsection the following: Provided, That manufacturers of, jobbers, and wholesale dealers in, manufactured tobacco, snuff, cigars, and cigarettes, and the agents or salesmen of such manufacturers, jobbers, and wholesale dealers, traveling from place to place, in the town or through the country, and selling and delivering or offering to sell and deliver such products only to dealers, shall not be construed to be peddlers. Approved, September 7, 1916. (T. D. 2377.) Authorization of acceptance by debtor corporations and withholding agents of ownership certificates (Form 1001, revised) prior to January 1, 1917, when executed by nonresident alien firms and organizations and stamped exempt." not TREASURY DEpartment, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., October 4, 1916. To collectors of internal revenue: Where income-tax ownership certificates (Form 1001, revised) have been executed by nonresident alien firms or organizations “not engaged in business or trade within the United States and not having any office or place of business therein" to accompany coupons detached from bonds or other obligations of domestic corporations they may be accepted by debtor corporations and withholding agents prior to January 1, 1917, if the words "not exempt " are stamped in large type across the face of certificates before presentation; and debtor corporations and withholding agents will be held liable under T. D. 2374 for the normal tax provided to be withheld by the act of September 8, 1916. Regulations No. 37, governing the collection of estate tax under the act of September 8, 1916. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., October 10, 1916. Transfers of net estates taxable where decedent died after September 8, 1916. ARTICLE I. Title II of the revenue act of September 8, 1916, levies a tax upon the transfer of net estates of decedents dying after the passage of the act-i. e., on or after September 9, 1916-whether the decedent be a resident or a nonresident of the United States. Territory for tax levy-United States defined for purpose of this tax. ART. II. The United States is defined (section 200) as including continental United States, Alaska, and Hawaii. The tax is not imposed in Porto Rico or the Philippine Islands, but, under the definition in the title, the property in the United States of deceased residents of the islands is taxable as the property of nonresidents. Exemption of $50,000 for estates of residents. ART. III. The rates of tax are set forth in section 201. In the case of the estates of all residents an exemption of $50,000 is allowed in determining the value of the net estate. But in the case of nonresidents' estates, no exemption is allowed, the only deductions from the gross estate being a certain proportion of such charges and losses as are allowed estates of residents. (See Article IX.) |