SEC. 221. (a) All persons, in SEC. 221. (a) That all individ- SEC. 221. (a) That all indiwhatever capacity acting, in- uals, corporations, and partner- viduals, corporations and partcluding lessees or mortgagors of ships, in whatever capacity act- nerships, in whatever capacity real or personal property, fidu- ing, including lessees or mort- acting, including lessees or mortciaries, employers, and all of- gagors of real or personal prop- gagors of real or personal propficers and employees of the erty, fiduciaries, employers, and erty, fiduciaries, employers, and United States having the control, all officers and employees of the all officers and employees of the receipt, custody, disposal, or pay- United States having the con- United States, having the conment of interest (except interest trol, receipt, custody, disposal, trol, receipt, custody, disposal, on deposits with persons carry- or payment of interest (except or payment, of interest, rent, ing on the banking business paid interest on deposits with persons salaries, wages, premiums, annuito persons not engaged in busi- carrying on the banking busi- ties, compensations, remuneraness in the United States and ness paid to persons not engaged tions, emoluments, or other fixed not having an office or place of in business in the United States or determinable annual or pebusiness therein), rent, salaries, and not having an office or place riodical gains, profits, and inwages, premiums, annuities, of business therein), rent, sal- come, of any nonresident alien compensations, remunerations, aries, wages, premiums, annui- individual (other than income emoluments, or other fixed or dereceived as dividends from a corterminable annual or periodical poration which is taxable under gains, profits, and income, of this title upon its net income) any nonresident alien individshall (except in the cases proual, or of any partnership not vided for in subdivision (b) and engaged in trade or business except as otherwise provided in within the United States and not regulations prescribed by the having any office or place of Commissioner business therein and composed in whole or in part of nonresident aliens, (other than income received as dividends of the class allowed as a credit by subdivision (a) of section 216) 181 shall (except in the cases provided for in subdivision (b) and except as otherwise provided in regulations prescribed by the Commissioner under section 217) 182 deduct and withhold from such annual or periodical gains, profits, and income a tax equal to 6 per centum thereof: Provided, That the Commissioner may au under section ties, compensations, remunera- 180 Title I, Part I, Act of 1916, as amended by Sec. 1205 (1), Title XII, Act of 1917. 181 Sec. 216 (a), p. 114. 182 Sec. 217, p. 120. Act of 1917. Act of 1916. Act of 1913. cor SEC. 1205. [1] (1)180 That SEC. 9. (b) [1] All persons, E. [3] All persons, firms, cosubdivisions (b), (e), (f), and firms, copartnerships, companies, partnerships, companies, (g) of section nine of such Act corporations, joint-stock com-porations, joint-stock companies of September eighth, nineteen panies, or associations, and in- or associations, and insurance hundred and sixteen, are hereby surance companies, in whatever companies, in whatever capacity amended to read as follows: capacity acting, including les- acting, including lessees or mortSEC. 9. “(b) All persons, cor- sees or mortgagors of real or per- gagors of real or personal propporations, partnerships, associa- sonal property, trustees acting erty, trustees acting in any trust tions, and insurance companies, in any trust capacity, executors, capacity, executors, administrain whatever capacity acting, in- administrators, receivers, con- tors, agents, receivers, conservacluding lessees or mortgagors of servators, employers, and all of- tors, employers, and all officers real or personal property, trus- ficers and employees of the and employees of the United tees acting in any trust capacity, United States having the con- States having the control, reexecutors, administrators, re- trol, receipt, custody, disposal, ceipt, custody, disposal, or payceivers, conservators, employers, or payment of interest, rent, ment of interest, rent, salaries, and all officers and employees of salaries, wages, premiums, an- wages, premiums, annuities, the United States, having the nuities, compensation, remuner- compensation, remuneration, control, receipt, custody, dis- ation, emoluments, or other emoluments, or other fixed or deposal, or payment of interest, fixed or determinable annual or terminable annual gains, profits, rent, salaries, wages, premiums, periodical gains, profits, and in- and income of another person, annuities, compensation, remu- come of another person, exceed- exceeding $3,000 for any taxable neration, emoluments, or other ing $3,000 for any taxable year, year, other than dividends on fixed or determinable annual or other than income derived from capital stock, or from the net periodical gains, profits, and in- dividends on capital stock, or earnings of corporations and come of any nonresident alien from the net earnings of joint-stock companies or associaindividual, other than income de- corporations and joint-stock tions subject to like tax, who are rived from dividends on capital companies or associations, or in- required to make and render a stock, or from the net earnings surance companies, the income return in behalf of another, as of a corporation, joint-stock of which is taxable under this provided herein, to the collector company or association, or insur- title, who are required to make of his, her, or its district, are ance company, which is taxable and render a return in behalf hereby authorized and required upon its net income as provided of another, as provided herein, to deduct and withhold 183 from in this title, are hereby author- to the collector of his, her, or its such annual gains, profits, and ized and required to deduct and district, are hereby authorized income such sum as will be sufwithhold from such annual or and required to deduct and with- ficient to pay the normal tax imperiodical gains, profits, and hold from such annual or period- posed thereon by this section, income such sum as will be suffi- ical gains, profits, and income and shall pay to the officer of cient to pay the normal tax im- such sum as will be sufficient to the United States Government posed thereon by this title, and pay the normal tax imposed authorized to receive the same; shall make return thereof on or thereon by this title, and shall and they are each hereby made before March first of each year pay the amount withheld to the personally liable for such tax. law." 183 The provision in the Act of 1913 for collection at the source was not wanting in "due process of S. 1. Brushaber v. U. P. R. R. Co., (1916) 240 U. thorize such tax to be deducted owners of which are not known and withheld from the interest to the withholding agent. upon any securities the owners of which are not known to the withholding agent. Act of 1918. SEC. 221. (b) In any case SEC. 221. (b) In any case or or SEC. 221. (b) In any case where bonds, mortgages, or deeds where bonds, mortgages, where bonds, mortgages, of trust, or other similar obliga- deeds of trust, or other similar deeds of trust, or other similar tions of a corporation contain obligations of a corporation con- obligations of a corporation cona contract or provision by which tain a contract or provision by tain a contract or provision by the obligor agrees to pay any which the obligor agrees to pay which the obligor agrees to pay portion of the tax imposed by any portion of the tax imposed any portion of the tax imposed this title upon the obligee, or to by this title upon the obligee, by this title upon the obligee, reimburse the obligee for any or to reimburse the obligee for or to reimburse the obligee for portion of the tax, or to pay the any portion of the tax, or to any portion of the tax, or to interest without deduction for pay the interest without deducpay the interest without deducany tax which the obligor may tion for any tax which the ob- tion for any tax which the obbe required or permitted to pay ligor may be required or per- ligor may be required or perthereon, or to retain therefrom mitted to pay thereon, or to re- mitted to pay thereon or to reunder any law of the United tain therefrom under any law tain therefrom under any law States, the obligor shall deduct of the United States, the obligor of the United States, the oband withhold a tax equal to 2 shall deduct and withhold a tax ligor shall deduct and withhold 185 per centum of the interest upon equal to 2 per centum of the in- a tax equal to 2 per centum of such bonds, mortgages, deeds of terest upon such bonds, mort- the interest upon such bonds, trust, or other obligations, gages, deeds of trust, or other mortgages, deeds of trust, or whether such interest is payable obligations, whether such inter- other obligations, whether such annually or at shorter or longer est is payable annually or at interest is payable annually or periods and whether payable to shorter or longer periods and at shorter or longer periods and a nonresident alien individual or whether payable to a nonresi- whether payable to a nonresito an individual citizen or resi- dent alien individual or to an in- dent alien individually or to an dent of the United States or to dividual citizen or resident of individual citizen or resident of a partnership: Provided, That the United States or to a part- the United States or to a partthe Commissioner may authorize nership: Provided, That the nership: Provided, That the such tax to be deducted and Commissioner may authorize Commissioner may authorize withheld in the case of interest such tax to be deducted and such tax to be deducted and upon any such bonds, mortgages, withheld in the case of interest withheld in the case of interest deeds of trust, or other obliga- upon any such bonds, mort- upon any such bonds, mortgages, tions, the owners of which are gages, deeds of trust, or other deeds of trust or other obliganot known to the withholding obligations, the owners of which tions, the owners of which are agent. Such deduction and are not known to the withhold- not known to the withholding withholding shall not be re- ing agent. Such deduction and agent. Such deduction and quired in the case of a citizen withholding shall not be re- withholding shall not be reor resident entitled to receive quired in the case of a citizen quired in the case of a citizen 184 Title I, Part I, Act of 1916, as amended by Sec. 1205 (1), Title XII, Act of 1917. 185 The tax required to be deducted and withheld by the obligor under Sec. 221 (b) of the Act of 1918 and Sec. 9 (c) of the Act of 1916, as amended by Act of 1917. and, on or before the time fixed by law for the payment of the tax, shall pay the amount withheld to the officer of the United States Government authorized to receive the same; and they are each hereby made personally liable for such tax, and they are each hereby indemnified against every person, corporation, partnership, association, or insurance company, or demand whatsoever for all payments which they shall make in pursuance and by virtue of this title. SEC. 1205. [2], amending Sec. SEC. 9. (c) The amount of the E. [5] Provided further, That 9. (c) 184 The amount of the normal tax hereinbefore imposed the amount of the normal tax normal tax hereinbefore im- shall be deducted and withheld hereinbefore imposed shall be deposed shall also be deducted and from fixed or determinable an- ducted and withheld from fixed withheld185 from fixed or deter- nual or periodical gains, profits, and determinable annual gains, minable annual or periodical and income derived from inter-profits, and income derived from gains, profits and income de- est upon bonds and mortgages, interest upon bonds and mortrived from interest upon bonds or deeds of trust or other similar gages, or deeds of trust or other and mortgages, or deeds of trust obligations of corporations, similar obligations of corporaor other similar obligations of joint-stock companies, associa- tions, joint-stock companies or corporations, joint-stock com- tions, and insurance companies associations, and insurance companies, associations, and insur- whether payable annually or at panies, whether payable annualance companies, (if such bonds, shorter or longer periods, al- ly or at shorter or longer mortgages, or other obligations though such interest does not periods, although such interest contain a contract or provision amount to $3,000, subject to the does not amount to $3,000, subby which the obligor agrees to provisions of this title requiring ject to the provisions of this secpay any portion of the tax im- the tax to be withheld at the tion requiring the tax to be posed by this title upon the ob- source and deducted from an withheld at the source and deligee or to reimburse the obligee nual income and returned and ducted from annual income and for any portion of the tax or to paid to the Government. paid to the Government; pay the interest without deduc- SEC. 9. (d) And likewise the tion for any tax which the mount of such tax shall be de obligor may be required or per- lucted and withheld from coumitted to pay thereon or to re-pons, checks, or bills of exchange tain therefrom under any law for or in payment of interest upof the United States) whether on bonds of foreign countries payable annually or at shorter and upon foreign mortgages or or longer periods and whether like obligations (not payable in such interest is payable to a non- the United States), and also resident alien individual or to from coupons, checks, or bills of an individual citizen or resident exchange for or in payment of of the United States, subject to any dividends upon the stock the provisions of the foregoing or interest upon the obligations subdivision (b) of this section requiring the tax to be withheld at the source and deducted from annual income and returned and paid to the Government, unless the person entitled to receive such interest shall file of foreign corporations, associa- And the tax in such cases shall Sec. 1205 of the Act of 1917, was not income to the obligee. Pitney v. Duffy (Ex-Col.), (D. C., D. N. J. the E. [6] and likewise amount of such tax shall be deducted and withheld from coupons, checks, or bills of exchange for or in payment of interest upon bonds of foreign countries and upon foreign mortgages or like obligations (not payable in the United States), and also from coupons, checks, or bills of exchange for or in payment of any dividends upon the stock or interest upon the obligations of foreign corporations, associations, and insurance companies engaged in business in foreign countries; and the tax in each case shall be withheld and deducted for and in behalf of any person subject to the tax here Act of 1924. such interests, if he files with the withholding agent on or before February 1 a signed notice in writing claiming the benefit of the credits provided in subdivisions (c) and (d) of section 216;186 nor in the case of a nonresident alien individual if so provided for in regulations prescribed by the Commissioner under subdivision (g) of section 217,187 or resident entitled to receive or resident entitled to receive SEC. 221. (c) Every person required to deduct and withhold any tax under this section shall make return thereof on or before March 15 of each year and shall on or before June 15 pay the tax to the official of the United States Government authorized to receive it. Every such person is hereby made liable for such tax and is hereby indemnified against the claims and demands of any person for the amount of any payments made in accordance with the provi sions of this section. SEC. 221. (d) Income upon which any tax is required to be withheld at the source under this section shall be included in the 186 Sec. 216 (c) and (d), p. 116. SEC. 221. (c) Every individual, corporation, or partnership required to deduct and withhold any tax under this section shall make return thereof on or before March 1 of each year and shall on or before June 15 pay the tax to the official of the United States Government authorized to receive it. Every such individual, corporation, or partnership is hereby made liable for such tax and is hereby indemnified against the claims and demands of any individual, corporation, or partnership for the amount of any payments made in accordance with the provisions of this section. SEC. 221. (d) Income upon which any tax is required to be withheld at the source under this section shall be included in the SEC. 221. (c) Every individual, corporation, or partnership required to deduct and withhold any tax under this section shall make return thereof on or before March first of each year and shall on or before June fifteenth pay the tax to the official of the United States Government authorized to receive it. Every such individual, corporation, or partnership is hereby made liable for such tax and is hereby indemnified against the claims and demands of any individual, corporation, or partnership for the amount of any payments made in accordance with the provisions of this section. SEC. 221. (d) Income upon which any tax is required to be withheld at the source under this section shall be included in the 187 Sec. 217 (g), p. 128. |