otherwise provides. (Telegram from Treasury Department dated January 25, 1918; I. T. S., 1918, Par. 3074.) The parent is held to be the natural guardian of a minor child. Income received by the minor child from sources other than the parent should be included by the parent in his return of income. The fact that such income is not appropriated by the parent is immaterial, as it will be held, in the absence of a showing of fact to the contrary, that such income was subject to appropriation and was appropriated by the parent, and that the child receives the same as a gift from the parent. Where the income is from a separate estate and the parent has been appointed guardian and the conditions are such that the income so received is to be held for the use of the child, it shall not be included in the return of income of the parent, but shall be accounted for otherwise for the purpose of the income tax in manner and form as called for by the facts of the particular case. (Reg. 33 Rev., Art. 29.)

CHAPTER 4

CITIZENS AND RESIDENTS OF THE UNITED STATES

[Page 33.]

Losses Not Incurred in Trade. The next to the last sentence of the paragraph (on page 34) should read as follows: "He is thus required to pay a tax on only the net gain from such transactions during the year."

[Page 36.]

Contributions to Charities. In connection with claim for this deduction on returns of income there shall be stated:

(a) The name and address of each organization to which a gift was made.

(b) The date and amount of the gift in each case.

Where the gift is other than money, the basis for calculation of the value of the gift shall be the fair market value of the property the subject of gift at the time of the gift. (Reg. 33 Rev., Art. 8.)

CHAPTER 5

NON-RESIDENT ALIENS

[Page 48.]

Salaries Paid by Resident Employers. It is held that salaries, wages, commissions, and rents paid by domestic corporations resident individuals, or partnerships to non-resident alien employees for services rendered entirely in a foreign country and for property located in a foreign country are not subject to deduction and withholding of the normal tax, and such payments of income will not be subject to the income tax in the hands of the recipient as from a source within the United States. (Reg. 33 Rev., Art. 32.)

[Page 50.]

Profits on the Sale of Property. When a non-resident alien who owns stock in an American corporation disposes of same by sale, the sale and delivery being made within the United States, the profit will be held to have been derived from sources within the United States and is to be included for the purpose of income tax. (Reg. 33 Rev., Art. 4.)

[Page 55.]

Return of Annual Net Income. A non-resident alien individual shall make a full and accurate return of all net income received from sources within the United States, regardless of amount unless the tax on such income has been fully paid at the source; and is not entitled to the benefit of the several deductions and credits provided by section 6 of the act of September 8, 1916, as amended by the act of October 3, 1917, unless such return is filed by him or his authorized agent. (Reg. 33 Rev., Art. 32.)

[Page 55, Note 43.]

When all income tax to which income of a non-resident alien is subject is not withheld at the source, a return of income will be required to be filed by or on behalf of said non-resident alien, and penalty for failure to make return in time will attach. All property in the United States of a non-resident alien will be subject to distraint for collection of tax and penalty. (Reg. 33 Rev., Art. 13.)

[Page 58.]

Abatement and Refund. Where, upon filing return of income, it appears that a non-resident alien is not liable for income tax, but, nevertheless, income tax shall have been withheld at the source, in order to obtain a refund on the basis of the showing made by the return there shall be attached to the return a statement showing accurately the amounts of tax withheld, with the names and post offices addresses of all withholding agents. (Reg. 33 Rev., Art. 32.)

CHAPTER 6

RESIDENT AGENTS FOR NON-RESIDENT ALIENS, FOREIGN CORPORATIONS AND FOREIGN PARTNERSHIPS

[Page 62.]

Duties and Liabilities of Resident Agents. The responsible heads or representatives of non-resident aliens in connection with any sources which said non-resident aliens may have within the United States, shall make a full and complete return of such income and shall pay any and all tax, normal and additional, assessed upon the income received by them in behalf of their nonresident alien principals, in all cases where the income tax on income so in their receipt, custody, or control shall not have been withheld at the source.

Where non-resident aliens have various sources of income within the United States so that at any one source or from all sources combined, the amount of income shall call for the assessment of additional tax and a return of income shall not be filed by or on behalf of a non-resident alien for the purpose of the assessment of income tax, the Commissioner of Internal Revenue will cause a return of income to be made and include therein the income of the non-resident alien from all sources concerning which he has information and shall assess the tax and collect the same from one or more or all of the sources of income within the United States of said non-resident alien, without allowance for deductions and credits under section 6. (Reg. 33 Rev., Art. 32.)

[Page 63.]

Making Returns for Non-Resident Principal. The agent of a non-resident alien is responsible for a correct

return of all income accruing to his principal within the purview of the agency, and the agent will be held responsible for a complete return of all such income. The agency appointment will determine how completely the agent is substituted for the principal for income tax purposes. (Reg. 33 Rev., Art. 32.)

[Page 64.]

Paying the Tax for Non-Resident Principal. Income derived by non-resident aliens from sources in the United States is subject to the normal or additional tax, or both, as the case may be, and said tax shall be paid by the owner of said income, or the proper representative of the non-resident alien having the receipt, custody, control, or disposal of the same. In all cases the proper representative in the United States of a non-resident alien, with respect to such income, shall make return for such non-resident of all such income coming into his custody or control and pay the tax thereon as provided by law; provided, however, where all income shall have been paid over by the representative to his principal on or before October 3, 1917, under the law and income tax regulations in force up to that date, or where the stockholder or record shall notbetween October 3 and December 31, 1917,-be in receipt of or have in his custody or control income the property of his said principal, such representative will be relieved from paying said tax, leaving the same a charge against the non-resident alien and to be collected from him by any means at the disposal of the Commissioner of Internal Revenue; but where such representative shall have in his possession, custody, or control subsequent to October 3, 1917, income of such non-resident alien, said representative shall pay the