Form 1000

Ownership Certificate

Tax to be Paid at Source

Form 1000 must be filed by

(1) Citizens or residents (individuals and fiduciaries), not claiming exemption;

(2) Partnerships (resident or nonresident);

(3) Personal service corporations,*

when collecting interest on bonds or other similar obligations of domestic or resident corporations, or foreign corporations having a paying agent in the United States, which contain a "tax-free" covenant, and by

(1) Nonresident alien individuals;

(2) Nonresident alien fiduciaries;

(3) Foreign corporations having no office or place of business in the United States;

(4) First collecting bank when owner of the bond is unknown, when collecting interest on bonds or other similar obligations of domestic or resident corporations whether or not containing a "tax-free" covenant.

Bonds are known as "tax-free" covenant bonds when they contain a provision by which the corporation agrees to pay any portion of the tax imposed by the income tax law, upon the owner of the bonds, or to reimburse the owner of the bonds for any portion of the tax which he may be obliged to pay, or to pay the interest without deduction for any tax which the corporation may be required or permitted to pay thereon or to retain therefrom under any law of the United States. The filing of this certificate in the collection of interest on "tax-free" covenant bonds serves as notice to the corporation issuing the bonds that the owner is subject to income tax and that the corporation is therefore liable for the payment of the normal tax to the extent of 2 per centum of the amount of the face value of the coupons deposited, in accordance with the covenant in the indenture under which the bonds are issued.

All certificates on Form 1000 must be filed with the collector for the district in which the withholding agent is located, on or before the 20th day of the month succeeding that for which made, accompanied by a return on Form 1012.

*See page 6.

Form 1001

Ownership Certificate

Tax Not to be Paid at Source

Form 1001 must be filed by

(1) Citizens or residents (individuals and fiduciaries);

(2) Partnerships (resident or nonresident),

when collecting interest on bonds or other similar obligations of domestic or resident corporations which do not contain a "taxfree" covenant, and by

(1) Domestic and resident corporations;

(2) Foreign corporations having an office or place of business in the United States,

when collecting interest on bonds or other similar obligations of domestic or resident corporations, whether or not such bonds contain a "tax-free" covenant.

Foreign governments or foreign corporations exempt from income tax, when collecting interest on bonds of domestic or resident corporations, whether or not containing a "tax-free" covenant, should execute Form 1001, entering the amount of interest due on Line 7.

Form 1001 should also be filed by citizens or residents (individuals and fiduciaries) when collecting interest on bonds or other similar obligations of domestic or resident corporations which contain a "tax-free" covenant clause, if personal exemption is claimed. The exemption so claimed during a taxable year must not exceed the personal exemption of the taxpayer allowed by law. If exemption is claimed in this manner on any interest received, credit for tax paid at source must not be claimed with respect to such interest on the individual income tax return of the owner of the bonds.

Form 1001 should not be used by the owner of "tax-free" covenant bonds if his net income exceeds his personal exemption, unless he wishes to relieve the debtor corporation from the payment of the tax,

All certificates on Form 1001 must be filed with the Commissioner of Internal Revenue (Sorting Division), Washington, D. C., on or before the 20th day of the month succeeding that for which made, accompanied by a return on Form 1096-A.

NAME

ADDRESS

SEE INSTRUCTIONS ON FORM 1096 A.

Form 1001-A

Ownership Certificate

Tax Not to be Paid at Source

Form 1001-A is to be used by owners of bonds of foreign countries or owners of bonds or stocks of foreign corporations. Where bonds of a foreign country or foreign corporation, having a paying agent in this country, contain a "tax-free" covenant, Form 1000 shall be used when the bonds are owned by a citizen or resident of the United States, unless the owner desires to claim exemption, in which case Form 1001-A shall be used. If Form 1000 is used as above provided, the paying agent is required to pay the tax of 2 per centum upon the interest on such bonds, in accordance with the terms of the "tax-free" covenant.

If foreign bonds or stocks are owned by a nonresident alien individual, fiduciary, partnership, or corporation, certificate Form 1001-A may be executed on behalf of such owner by any responsible bank or banker, either foreign or domestic, having knowledge of such ownership. It is not necessary that the name of the foreign owner be filled in on the form when so executed, but the due date and the date paid must be given.

In the case of interest on bonds, if the foreign country or foreign corporation has appointed a paying agent in this country, paying the interest on its bonds, such paying agent shall be the source of information. In such case, ownership certificates should accompany the coupons to the paying agent. If there is no paying agent in the United States, the last bank or collecting agent in this country shall be the source of information and in such case, ownership certificate should be detached by such bank.

In the case of dividends on stock of foreign corporations, the first bank or agent accepting such items for collection shall be the source of information. In this case, the ownership certificate shall be detached by the first collecting bank or agent and the check stamped "Certificate detached and information furnished by ... ," with its name and address.

All certificates on Form 1001-A must be filed with the Commissioner of Internal Revenue (Sorting Division), Washington, D. C., on or before the 20th day of the month succeeding that for which made, accompanied by a return on Form 1096-A.