Taxable Years Taxable Years Taxable Years Sec. 143. (d) Income of recipi- Sec. 143. (d) Income of recipi- Sec. 143. (d) Income of recipient.-Income upon which tax ent.-Income upon any which any tax ent.-Income upon which any tax is required to be withheld at the is required to be withheld at the is required to be withheld at the source under this section shall be source under this section shall be source under this section shall be included in the return of the recipi- included in the return of the recipi- included in the return of the recipient of such income, but any amount ent of such income, but any amount ent of such income, but any amount of tax so withheld shall be credited of tax so withheld shall be credited of tax so withheld shall be credited against the amount of income tax against the amount of income tax against the amount of income tax as computed in such return. as computed in such return. as computed in such return. Sec. 143. (e) Tax paid by re- Sec. 143. (e) Tax paid by recipient. If any tax required un- cipient.-If any tax required under this section to be deducted and der this section to be deducted and withheld is paid by the recipient withheld is paid by the recipient of the income, it shall not be re- of the income, it shall not be recollected from the withholding collected from the withholding collected from the withholding agent; nor in cases in which the tax is so paid shall any penalty be imposed upon or collected from the recipient of the income or the withholding agent for failure to return or pay the same, unless such failure was fraudulent and for the purpose of evading payment. agent; nor in cases in which the Sec. 143. (e) Tax paid by recipient.-If any tax required under this section to be deducted and withheld is paid by the recipient of the income, it shall not be reagent; nor in cases in which the tax is so paid shall any penalty be imposed upon or collected from the recipient of the income or the withholding agent for failure to return or pay the same, unless such failure was fraudulent and for the purpose of evading payment. Sec. 143. (f) Refunds and cred- Sec. 143. (f) Refunds and cred- Sec. 143. (f) Refunds and credits. Where there has been an over-its.-Where there has been an over-its.-Where there has been an overpayment of tax under this section payment of tax under this section payment of tax under this section any refund or credit made under any refund or credit made under any refund or credit made under the provisions of section 322 shall the provisions of section 322 shall the provisions of section 322 shall be made to the withholding agent be made to the withholding agent be made to the withholding agent unless the amount of such tax was unless the amount of such tax was unless the amount of such tax was actually withheld by the withhold- actually withheld by the withhold- actually withheld by the withholding agent. ing agent. ing agent. Sec. 143. (g) Cross reference. For definition of "withholding agent," see section 3797 (a) (16). See. 143. (h) Rates until Jan uary 1945. For the period after June 25, 1940, and before January 1, 1945, the rate provided in this section and section 144, of 15 per eentum shall be 161⁄2 per centum. This subsection or section 15 shall not apply in any case where its operation would be contrary to any treaty obligation of the United States, nor to a resident of, or e corporation organized under the laws of, a contiguous country se long as there is in effect with such country a treaty, ratified prior to August 26, 1037, relating to rates of income tax. Sec. 143 (h), supra, added to I. R. C. by Sec. 202, R. A. of 1940, effective June 25. 1940; and repealed by Sec. 107 (b), R. A. of 1941, effective Sept. 20, 1941. Sec. 143. (e) Tax paid by re- Sec. 143. (e) Tax paid by recipient. If any tax required un- cipient.-If any tax required under this section to be deducted and der this section to be deducted and withheld is paid by the recipient withheld is paid by the recipient of the income, it shall not be re- of the income, it shall not be recollected from the withholding collected from the withholding agent; nor in cases in which the agent; nor in cases in which the tax is so paid shall any penalty be imposed upon or collected from the recipient of the income or the withholding agent for failure to return or pay the same, unless such failure was fraudulent and for the ure was fraudulent and for the purpose of evading payment. purpose of evading payment. tax is so paid shall any penalty be Sec. 143. (e) Tax paid by recipient. See p. 256, Eighth Edition. Sec. 143. (f) Refunds and See p. 256, Eighth Edition. Sec. 143. (f) Refunds and cred- Sec. 143. (f) Refunds and credits. Where there has been an its. Where there has been an credits. overpayment of tax under this sec- overpayment of tax under this section any refund or credit made tion any refund or credit made under the provisions of section 322 under the provisions of section 322 shall be made to the withholding shall be made to the withholding agent unless the amount of such agent unless the amount of such tax was actually withheld by the tax was actually withheld by the withholding agent. withholding agent. Sec. 143. (g) Cross reference.— For definition of "withholding agent", see section 3797 (a) (16). Sec. 143. (h) Rates until January 1945.-For the period after June 25, 1940, and before January 1, 1945, the rate provided in this section and section 144, of 15 per centum shall be 162 per centum. This subsection or section 15 shall not apply in any case where its operation would be contrary to any treaty obligation of the United States, nor to a resident of, or a corporation organized under the laws of, a contiguous country so long as there is in effect with such country a treaty, ratified prior to August 26, 1937, relating to rates of income tax. Sec. 143. (g) Cross reference. For definition of "withholding agent", see section 3797 (a) (16). Taxable Years Sec. 144. Payment of corporation income tax at source. Taxable Years Sec. 144. Payment of corporation income tax at source. Taxable Years Sec. 144. Payment of corporation income tax at source. In the case of foreign corporaIn the case of foreign corporaIn the case of foreign corporations subject to taxation under this tions subject to taxation under this tions subject to taxation under this chapter not engaged in trade or chapter not engaged in trade or chapter not engaged in trade or business within the United States business within the United States business within the United States there shall be deducted and with- and not having any office or place and not having any office or place held at the source in the same man- of business therein, there shall be of business therein, there shall be ner and upon the same items of in- deducted and withheld at the source deducted and withheld at the source come as is provided in section 143 in the same manner and upon the in the same manner and upon the a tax equal to 30 per centum same items of income as is pro- same items of income as is prothereof, except that in the case of vided in section 143 a tax equal to vided in section 143 a tax equal to corporations organized under the 30 272 per centum thereof, except 15-272 per centum thereof, except laws of any country in North, Cen- that in the case of corporations or- that in the case of corporations ortral, or South America, or in the ganized under the laws of any ganized under the laws of a con West Indies, or of Newfoundland, country in North, Central, or South tiguous country any country in such rate with respect to dividends America, or in the West Indies, or North, Central, or South America, shall be reduced to such rate (not of Newfoundland, such rate with or in the West Indies, or of Newless than 5 per centum) as may be respect to dividends shall be reduced provided by treaty with such to such rate (not less than 5 per foundland, such rate with respect to country; and such tax shall be re- centum) as may be provided by dividends shall be reduced to such turned and paid in the same man- treaty with such country; and such rate (not less than 5 per centum) ner and subject to the same condi- tax shall be returned and paid in as may be provided by treaty with tions as provided in that section: the same manner and subject to the such country; and such tax shall be Provided, That in the case of inter- same conditions as provided in that returned and paid in the same manest described in subsection (a) of section: Provided, That in the case ner and subject to the same condithat section (relating to tax-free of interest described in subsection tions as provided in that section: covenant bonds) the deduction and (a) of that section (relating to tax- Provided, That in the case of inwithholding shall be at the rate free covenant bonds) the deduction terest described in subsection (a) specified in such subsection. and withholding shall be at the rate of that section (relating to tax-free specified in such subsection. covenant bonds) the deduction and withholding shall be at the rate specified in such subsection. Sec. 144, I. R. C., supra, amended by Sec. 108 (a), R. A. of 1942 and by Sec. 160 (a) (3), of said Act to read as above, effective Oct. 31, 1942. For Sec. 144, I. R. C., supra, before amendment, see 1942 column. Sec. 145. Penalties. Sec. 144, I. R. C., supra, amended by Sec. 108 (a), R. A. of 1942, by substituting "30" for "271⁄2." Sec. 108 (c) of said Act makes amendment effective on Oct. 31, 1942. Sec. 144, I. R. C., again amended by Sec. 160 (a) (3), R. A. of 1942, by omitting language "and not having any office or place of business therein." Sec. 160 (a) (4) of said Act makes amendment effective Oct. 31, 1942. of For prior amendments Sec. 145. Penalties. Sec. 145. (a) Failure to file re- Sec. 145. (a) Failure to file returns, submit information, or pay turns, submit information, or pay estimated tax or tax. Any per- tax.-Any person required under son required under this chapter to this chapter to pay any tax, or repay any estimated tax or tax, or quired by law or regulations made required by law or regulations made under authority thereof to make a under authority thereof to make a return, keep any records, or supply return or declaration, keep any rec- any information, for the purposes ords, or supply any information, for of the computation, assessment, or the purposes of the computation, collection of any tax imposed by assessment, or collection of any es- this chapter, who willfully fails to timated tax or tax imposed by this pay such tax, make such return, chapter, who willfully fails to pay keep such records, or supply such such estimated tax or tax, make information, at the time or times such return or declaration, keep required by law or regulations, such records, or supply such infor- shall, in addition to other penalties mation, at the time or times required provided by law, be guilty of a misby law or regulations, shall, in ad- demeanor and, upon conviction Sec. 144, I. R. C., supra, amended by Sec. 107 (a), R. A. of 1941, by substituting "27" for "15." Sec. 107 (c) of said Act makes amendment effective on Sept. 30, 1941. Sec. 144, I. R. Č., again amended by Sec. 109 (a), R. A. of 1941, by omitting language "a contiguous country" and adding language in underlined italics. Sec. 118 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940. Sec. 145. Penalties. Sec. 145. (a) Failure to file returns, submit information, or pay tax. Any person required under this chapter to pay any tax, or required by law or regulations made under authority thereof to make a return, keep any records, or supply any information, for the purposes of the computation, assessment, or collection of any tax imposed by this chapter, who willfully fails to pay such tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction Taxable Years Sec. 144. Payment of corporation income tax at source. Taxable Years Sec. 144. Payment of corporation income tax at source. In the case of foreign corporaIn the case of foreign corporations subject to taxation under tions subject to taxation under this chapter not engaged in trade this chapter not engaged in trade or business within the United or business within the United States and not having any office States and not having any office or place of business therein, there or place of business therein, there shall be deducted and withheld at shall be deducted and withheld at the source in the same manner and the source in the same manner and upon the same items of income as upon the same items of income as is provided in section 143 a tax is provided in section 143 a tax equal to 15 per centum thereof, ex- equal to 15 per centum thereof, exeept that in the case of dividends cept that in the case of dividends the rate shall be 10 per centum, the rate shall be 10 per centum, and except that in the case of cor- and except that in the case of corporations organized organized under the porations organized under the laws of a contiguous country such laws of a contiguous country such rate of 10 per centum with respect rate of 10 per centum with respect to dividends shall be reduced to to dividends shall be reduced to such rate (not less than 5 per cen- such rate (not less than 5 per centum) as may be provided by treaty tum) as may be provided by treaty with such country; and such tax with such country; and such tax shall be returned and paid in the shall be returned and paid in the same manner and subject to same manner and subject to the the same conditions as provided in same conditions as provided in that section: Provided, That in the that section: Provided, That in case of interest described in sub- the case of interest described in section (a) of that section (re- subsection (a) of that section (relating to tax-free covenant bonds) lating to tax-free covenant bonds) the deduction and withholding the deduction and withholding shall be at the rate specified in shall be at the rate specified in such subsection. such subsection. Sec. 144, I. R. C., supra, amended by Sec. 5 (b), R. A. of 1940, by omitting language in stricken through type. Sec. 5 (c) of said Act makes amendment effective on June 26, 1940. Taxable Years Sec. 144. Payment of corporation income tax at source. See p. 258, Eighth Edition. Sec. 145. (a) Failure to file re- Sec. 145. (a) Failure to file returns, submit information, or pay turns, submit information, or pay tax. Any person required under tax.-Any person required under this chapter to pay any tax, or re- this chapter to pay any tax, or required by law or regulations made quired by law or regulations made under authority thereof to make under authority thereof to make a return, keep any records, or a return, keep any records, or supply any information, for the supply any information, for the purposes of the computation, purposes of the computation, assessment, or collection of any assessment, or collection of any tax imposed by this chapter, who tax imposed by this chapter, who willfully fails to pay such tax, willfully fails to pay such tax, make such return, keep such rec- make such return, keep such records, or supply such information, ords, or supply such information, at the time or times required by at the time or times required by law or regulations, shall, in addi- law or regulations, shall, in addition to other penalties provided by tion to other penalties provided by law, be guilty of a misdemeanor law, be guilty of a misdemeanor Sec. 145. Penalties. See p. 260, Eighth Edition. Taxable Years dition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof, be fined not more than $10,000, or imprisoned for not more than one year, or both, together with the costs of prosecution. Sec. 145 (a), I. R. C., supra, amended by Sec. 5 (c), Current Tax Payment Act of 1943, by adding language in italics. Sec. 5 (f) of said Act makes amendment effective with respect to taxable years beginning after Dec. 31, 1942, except that Sec. 294 (a) (5), I. R. C., shall not be applicable to a taxable year beginning in 1943 in the case of an individual not required to make a declaration under Sec. 58, I. R. C., for such year. thereof, be fined not more than thereof, be fined not more than Sec. 145. (b) Failure to collect Sec. 145. (b) Failure to collect and pay over tax, or attempt to de- and pay over tax, or attempt to defeat or evade tax. Any person re-feat or evade tax.-Any person required under this chapter to collect, quired under this chapter to collect, account for, and pay over any tax account for, and pay over any tax imposed by this chapter, who will-imposed by this chapter, who willfully fails to collect or truthfully fully fails to collect or truthfully account for and pay over such tax, account for and pay over such tax, and any person who willfully attempts in any manner to evade or defeat any tax imposed by this chapter or the payment thereof, shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, be fined not more than $10,000 or imprisoned for not more than five years, or both, together with the costs of prosecution. and any person who willfully at- Sec. 145. (c) Any individual who Sec. 145. (c) Any individual who willfully makes and subscribes a willfully makes and subscribes a return which he does not believe to return which he does not believe to be true and correct as to every ma-be true and correct as to every material matter, shall be guilty of a terial matter, shall be guilty of a felony, and, upon conviction felony, and, upon conviction thereof, shall be subject to the thereof, shall be subject to the penalties prescribed for perjury in section 125 of the Criminal Code. penalties prescribed for perjury in Sec. 145. (d) Person defined.— Sec. 145. e) (d) Person deThe term "person" as used in this fined.-The term "person" as used section includes an officer or em- in this section includes an officer or ployee of a corporation or a member or employee of a partnership, who as such officer, employee, or member is under a duty to perform the act in respect of which the violation occurs. Sec. 145. (e) Cross reference.— (1) For penalties for failure to file information returns with respect to foreign personal holding companies and for employee of a corporation or a Sec. 145. d) (e) Cross refer ence. For penalties for failure to file information returns with respect to foreign personal holding companies and for Sec. 145. (b) Failure to collect and pay over tax, or attempt to defeat or evade tax.-Any person required under this chapter to collect, account for, and pay over any tax imposed by this chapter, who willfully fails to collect or truthfully account for and pay over such tax, and any person who willfully attempts in any manner to evade or defeat any tax imposed by this chapter or the payment thereof, shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, be fined not more than $10,000 or imprisoned for not more than five years, or both, together with the costs of prosecution. Sec. 145. (c) Person defined.— The term "person" as used in this section includes an officer or employee of a corporation or a member or employee of a partnership, who as such officer, employee, or member is under a duty to perform the act in respect of which the violation occurs. Sec. 145. (d) Cross reference.— For penalties for failure to file information returns with respect to foreign personal holding companies and for |