Preparation of The owners of bonds or other obligations issued by domestic or resident corporations, whether or not such bonds contain a "tax-free" covenant, when presenting interest coupons for payment, shall file a separate certificate of ownership for each issue of bonds and for each maturity of the same issue, showing: (a) name and address of the debtor corporation; (b) nature of the obligation; (c) amount of interest and its due date; (d) amount of any tax withheld. The spaces "due date" and "date paid" contained in the new forms of ownership certificates do not relate to the dates when the bonds themselves mature, but to payments of interest. Under existing Treasury regulations, payments should be refused unless all information called for on ownership certificates is complete. Execution of Ownership Certificates by Fiduciaries and Joint Owners When fiduciaries have the control and custody of more than one estate or trust and such estates or trusts have as assets bonds of corporations and other securities, a certificate of ownership shall be executed for each estate or trust, regardless of the fact that the bonds are of the same issue. Under the heading "Owner of Bonds" the name and title of the fiduciary should be entered, together with the name of the individual, estate, or trust for whom he acts. If bonds are owned jointly by several persons, a separate ownership certificate must be executed on behalf of each of the owners. Charitable and Other Tax-Exempt Foreign Corporations When collecting interest on bonds of domestic or resident corporations, charitable and other exempt foreign organizations should use Form 1001, whether or not the bonds contain a "tax-free" covenant. The words "Exempt Organization" should be written across the face of the certificate. Interest on Registered Bonds Where the bondholder files no ownership certificate in the case of payments of interest on registered bonds, the withholding agent shall make out a certificate in each instance on Form 1000, or on Form 1001, as the case may be. Coupons Purchased Abroad In case coupons detached from bonds issued by a domestic corporation are purchased abroad, the purchaser is prima facie held to be the recipient of income. For this reason, ownership certificates should be secured from the original owners of the bonds in order that the tax may be withheld under the provisions of the 1918 Revenue Law. (See also "Owners Unknown," page 10). Basis of Returns All returns of withholding and information must be filed on the basis of the calendar year and not on the basis of a fiscal year other than the calendar year. *If exemption is claimed Form 1001, Line 1 (See page 25). If exemption is claimed Form 1001-B may be filed after December 31, but not later than February 1 (See page 29). **If exemption is claimed Form 1001-A, Line 1 (See page 27). Numbers refer to Ownership Certificate Forms. Ownership certificates need not be filed in collecting interest on obligations of the United States and State and Municipal issues. Foreign governments, when collecting interest on bonds of domestic and resident corporations, must file certificate Form 1001. |