or existing under the laws of foreign countries so far as applicable. The normal tax will be withheld and paid at its source under the provisions of paragraphs D and E. Under the provisions of subdivision C of paragraph E the additional tax will not be assessed on income in the sourceholder's hands. The words "trustee or debtor" will be used to designate those who withhold and pay the normal tax as enumerated in said paragraphs. . Whenever a trustee or debtor has in his hands income which belongs to another person from any of the sources mentioned in said paragraphs which has been received during the taxable year as fixed, determinable annual gains and profits in excess of $3000, exclusive of dividends on the capital stock or from the net earnings of corporations and others, such trustee or debtor is authorized and required to deduct and withhold the normal tax upon such income and pay the same to the Collector of Internal Revenue. If such income is interest from corporate indebtedness the tax must be withheld and paid although such income is less than $3000. The tax will not be withheld prior to November 1st 1913. Thereafter it will be withheld on income for the taxable year as hereinbefore stated. Subdivision 2 of paragraph E provides that if the individual desires to claim the benefit of exemption C, where the tax is withheld and deducted at the source, he must, not less than 30 days prior to the 1st day of March each year file with the trustee or debtor a signed notice in writing claiming such benefit. After said notice has been filed the trustee or debtor will no longer withhold the tax upon the amount claimed by such exemption. Notice of an intention to claim the benefit of the deductions in paragraph B must be filed in the same manner. In addition to such notice, however, the individual must file at the same time a true and correct return of his annual gains, profits and income from all sources with the trustee or debtor and the showing thus made will then become a part of the return to be made in behalf of the individual by the trustee or debtor on or before March 1st. Instead of filing the return in this manner the individual may file it directly with the collector of internal revenue for the district in which return is made or to be made for him under the same conditions as in other cases of personal return. Concerning the time when the claim for exemption under paragraph C may be filed with the trustee or debtor there can be no doubt, as the exemption is a personal privilege it may be claimed at any time within the limitation stated. As to the earliest time when a claim for an allowance for the deductions in paragraph B may be made the law is not clear. As the exemption and deductions are beneficial provisions it is believed that the purpose of their allowance, in the manner stated in said subdivision 2 of paragraph E, is to enable the individual to obtain payment of income in the hands of his trustee or debtor upon which tax is withheld as speedily as possible by permitting him to file with such trustee or debtor partial returns of net income, with claim for deductions, at any time before the expiration of the time mentioned, which return will relieve the trustee or debtor from further liability of withholding and paying the tax, to the Government, on income to the amount of deductions claimed in such partial returns. No treasury regulation has been issued relating to this subject, but without doubt one will be promulgated at an early day. In case the individual fails to file a claim for the benefit of the exemption in paragraph C and the deductions in paragraph B with the trustee or debtor within the time stated he must make application for a refund of the tax, provided his entire income is in the hands of such trustee or debtor. If, however, he has other taxable income such claim for exemption and deductions will be considered in reference thereto. The trustee or debtor is authorized to make a return for one who is disqualified from doing so on account of minority, insanity, illness or absence from the United States. One for whom a return has been made and the tax paid, or to be paid, is not required to make a return unless he has other taxable income; but only one deduction of $3000 shall be made in the case of such person. Notwithstanding income in the hands of a trustee or debtor may not be taxable, still if it has been received from any of the sources mentioned in paragraph B, it may be taxable after the same has been paid to the individual. Under subdivision 2 of Paragraph E the trustee or debtor will withhold and pay the tax on interest and dividend income from corporate indebtedness although the same is less than $3000. The provisions of this paragraph relate to the fixed, and determinable annual gains, profits and income derived from interest upon the obligations of domestic corporations, jointstock companies or associations and insurance companies, whether payable annually or at longer or shorter periods, although such sum does not amount to $3000, subject, however, to the provisions of the law requiring the normal tax to be withheld at its source and deducted from the annual net income of the individual and paid to the Government. The normal tax will be deducted and withheld by such trustee or debtor from coupons, checks, or bills of exchange for or in payment of interest upon bonds of foreign countries, and upon foreign mortgages and like obligations (not payable in the United States). The tax will also be deducted and withheld from coupons etc. for or in payment of dividends upon the stock or interest upon the obligations of foreign corporations, associations and insurance companies engaged in business in foreign countries, although such interest or dividend does not exceed $3000: provided that in each case the person to whom such interest or dividend is payable is subject to the tax under the provisions of Paragraph A. These provisions which require the tax to be withheld from coupons etc. drawn and payable for such interest and dividends (not made payable in the United States) relate to a bank, or person who shall sell or otherwise realize or obtain the money in payment of such coupons etc. They also apply to any person (not in the United States) who shall obtain payment of such interest or dividend in behalf of a person subject to the tax thereon; and also to any dealer in such coupons who shall purchase the same for any such interest or dividend (not payable in the United States) otherwise than from a licensed banker of another dealer in such coupons. It will be observed that the last clause of this subdivision of paragraph E extends the benefit of the deductions and exemption in paragraphs B and C to the individual subject to the tax. Before a bank, corporation, or person can undertake as a matter of business or profit the collection of foreign payments of interest or dividends by means of coupons etc. a license will have to be obtained from the Commissioner of Internal Revenue. When a coupon or other evidence of the interest indebtedness of a domestic corporation etc. is presented to a bank or other collecting agency for collection, the owner of such coupon must attach thereto a certificate of ownership with a claim for exemption under paragraph C. The bank or collecting agency will thereupon forward said certificate with coupon to the trustee or debtor who, if such owner's net income does not exceed the amount of the exemption claimed, will remit to such bank the amount of such coupon in full. If such owner's income exceeds, from said source, the exemption claimed the trustee or debtor will withhold and pay the normal tax on such excess, unless, under proper regulations of the Treasury Department, the individual may be allowed the benefit of deductions in paragraph B in the manner hereinbefore pointed out. The bank or collecting agency may, however, attach its own certificate to such coupon; if this is done it will detach the owner's certificate therefrom and send the same direct to the Commissioner of Internal Revenue. If a coupon is presented for collection unaccompanied by a certificate of ownership and claim for exemption, as stated, the bank or collecting agency to whom presented will deduct the normal tax thereon and forward to the trustee or debtor the coupon with its certificate whereupon the trustee or debtor will be relieved from the payment of said tax thereon. In such a case the bank or collecting agency as a withholder of the tax will make return to the collector of internal revenue. In order to classify income upon which the normal tax is to be withheld and paid, and that upon which the tax is not to be withheld and paid we will state the same as follows: The tax will be withheld on income: a-When the net income of the individual from b-When such income is for interest on the |