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Disclosure of interest
payments on bonds, mortgages and deeds of trust
Names and addresses of recipients must
Provisions as to
New Sec. 30 Income of foreign governments not
such returns shall be required, regardless of amounts, in the case of payments of interest upon bonds and mortgages or deeds of trust or other similar obligations of corporations, joint-stock companies, associations, and insurance companies, and in the case of collections of items (not payable in the United States) of interest upon the bonds of foreign countries and interest from the bonds and dividends from the stock of foreign corporations by persons, corporations, partnerships, or associations, undertaking as a matter of business or for profit the collection of foreign payments of such interest or dividends by means of coupons, checks, or bills of exchange.
"When necessary to make effective the provisions of this section the name and address of the recipient of income shall be furnished upon demand of the person, corporation, partnership, association, or insurance company paying the in
"The provisions of this section shall apply to the calendar year nineteen hundred and seventeen and each calendar year hereafter, but shall not apply to the payment of interest on obligations of the United States.
New Sec. 29 Excess profits taxes assessed for taxable
"SEC. 29. That in assessing income tax the net income embraced in the return shall also be may be deducted credited with the amount of any excess profits
from income for income tax purposes
tax imposed by Act of Congress and assessed for the same calendar or fiscal year upon the taxpayer, and, in the case of a member of a partnership, with his proportionate share of such excess profits tax imposed upon the partnership.
"SEC. 30. That nothing in section II of the Act approved October third, nineteen hundred and thirteen, entitled 'An Act to reduce tariff duties and to provide revenue for the Government, and for other purposes,' or in this title, shall be con
strued as taxing the income of foreign governments received from investments in the United States in stocks, bonds, or other domestic securities, owned by such foreign governments, or from interest on deposits in banks in the United States of moneys belonging to foreign governments.
New Sec. 31
"SEC. 31. (a) That the term 'dividends' as Dennition of used in this title shall be held to mean any dis- dividends tribution made or ordered to be made by a corporation, joint-stock company, association, or insurance company, out of its earnings or profits accrued since March first, nineteen hundred and thirteen, and payable to its shareholders, whether Stock dividends in cash or in stock of the corporation, joint-stock Income to the company, association, or insurance company, which earnings or stock dividend shall be considered income, to the distributed” amount of the earnings or profits so distributed.
be deemed to be
"(b) Any distribution made to the sharehold- Dividends shall ers or members of a corporation, joint-stock com- paid out of net pany, or association, or insurance company, in the taxable year year nineteen hundred and seventeen, or subsequent tax years, shall be deemed to have been made from the most recently accumulated undivided profits or surplus, and shall constitute a part of the annual income of the distributee for the year in which received, and shall be taxed to the distributee at the rates prescribed by law for the years in which such profits or surplus were accumulated by the corporation, joint-stock company, association, or insurance company, but nothing herein shall be construed as taxing any earnings or profits accrued prior to March first, nineteen hundred and thirteen, but such earnings or profits may be distributed in stock dividends or otherwise, exempt from the tax, after the distribution of earnings and profits accrued since March first, nineteen hundred and thirteen, has been made. This subdivision shall not apply to any distribution made prior to August sixth, nineteen
New Sec. 32 Premiums paid on insurance of officers for
benefit of corporations, etc.
"SEC. 32. That premiums paid on life insurance policies covering the lives of officers, employees, or those financially interested in any trade from net income or business conducted by an individual, partnership, corporation, joint-stock company or association, or insurance company, shall not be deducted in computing the net income of such individual, corporation, joint-stock company or association, or insurance company, or in computing the profits of such partnership for the purposes of subdivision (e) of section nine." [Sic. section eight.]
hundred and seventeen, out of earnings or profits accrued prior to March first, nineteen hundred and thirteen.
Release of funds withheld under
containing "tax free" Covenant
SEC. 1212. That any amount heretofore withAct of September held by any withholding agent as required by Title I of such Act of September eighth, nineteen hundred and sixteen, on account of the tax imposed upon the income of any individual, a citizen or interest on bonds resident of the United States, for the calendar year nineteen hundred and seventeen, except in the cases covered by subdivision (c) of section nine of such act, as amended by this act, shall be released and paid over to such individual, and the entire tax upon the income of such individual for such year shall be assessed and collected in the manner prescribed by such Act as amended by this Act.
Invalidity of any section
TITLE XIII.-GENERAL PROVISIONS.
SEC. 1300. That if any clause, sentence, paragraph, or part of this Act shall for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of said Act, but shall be confined in its operation to the clause, sentence, paragraph, or part thereof directly involved in the controversy in which such judgment shall have been rendered.
SEC. 1301. That Title I of the Act entitled, "An Act to provide increased revenue to defray the expenses of the increased appropriations for the Army and Navy and the extension of fortifications, and for other purposes," approved March third, nineteen hundred and seventeen, be, and the same is hereby, repealed.
SEC. 1302. That unless otherwise herein spe- effect cially provided, this Act shall take effect on the day following its passage.
Approved, October 3, 1917.
Date Act takes