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coupons of the same maturity date and from the same issue of bonds in an envelope bearing the name of the debtor corporation, issue of bonds, maturity date of coupons, and the words "Domestic or resident corporate owner' over the name of their bank, before forwarding the coupons to a collecting bank or to the debtor corporation or its paying agent, for payment
Q. Must ownership certificates be filed with interest coupons on Liberty Bonds or State, County and Municipal bonds?
A. No. Ownership certificates are not required in collecting interest on any obligation of the United States or interest payments on any bond, the income from which is exempt from tax.
Q. My mother and I are joint owners of a $1,000 first mortgage 6 per cent bond. In collecting the interest on this bond shall I put both our names under “ Owner of Bonds? "
A. No. When bonds are owned jointly by two or more persons, a separate ownership certificate must be executed in behalf of each owner.
Q. Henry Jones is the executor of several estates which have as assets corporation bonds and other securities. In collecting interest on the bonds, may Mr. Jones make out one certificate to cover all the estates which have bonds of the same issue?
A. No. A separate certificate must be executed for each estate or trust.
Q. Mrs. John A. Smith owns a Southern Pacific 20-year 41⁄2 per cent bond. In collecting the interest on this bond, should she make out the ownership certificate in the name of (Mrs.) J. A. Smith or should she use her own Christian name?
A. She should use her own Christian name.
FEDERAL OWNERSHIP CERTIFICATE CHART
The following, which appeared in Treasury Department Internal Revenue Bulletin No. 22, dated May 29, 1922, is a schedule of ownership certificates required under the Revenue Act of 1921:
There is no space provided on Form 1001A for reporting income when the owner is unknown. If the foreign item is an interest coupon on bonds not containing a tax-free covenant clause, issued by a foreign Government or a foreign corporation, or is a dividend check on stock issued by a foreign corporation, the procedure set forth in the second paragraph of article 1078, Regulations 62,* should be followed. There is ample space on Form 1001A below the word "partnership" for the insertion of the word "unknown" under classification of owner, and for entering the income in the appropriate column.
*A copy of Regulations 62 may be obtained from your local Collector of Internal Revenue.
CAPITAL STOCK TAX
Title X, Section 1000, Revenue Act, 1921
Every domestic corporation and every foreign corporation engaged in business in the United States must file a return in July of each year in accordance with such regulations as the Commissioner of Internal Revenue may prescribe.
The following are not subject to this tax:
(1) Corporations not engaged in business (or, in the case of a foreign corporation, not engaged in business in the United States) during the preceding fiscal year, i.e., the twelve months ending June 30.
(2) Corporations listed in Section 231 of the 1921 Act. (Page 81.)
(3) Any insurance company subject to tax under Sections 243 or 246 of the 1921 Act. (Pages 88 and 89.)
Basis and Rate of Tax.
This is an annual excise tax paid in advance for the privilege of doing business in a corporate capacity during the period of twelve months beginning July 1. The rate of tax is $1 for each $1,000 of the fair average value above $5,000 of the corporation's capital stock during the twelve months preceding July 1, or any part thereof during which the corporation was in existence. The tax on a foreign corporation is $1 for each $1,000 of the average amount of capital employed in the transaction of its business in the United States during the preceding year ending June 30 without deduction of the $5,000 exemption allowed domestic corporations.
A corporation beginning business after July 1 is not subject to tax until the following July 1.
Title XI, Sections 1100-1107, Revenue Act, 1921, Schedule A
Internal revenue stamps must be affixed to the following documents in the amounts specified:
Bonds and Debentures or Certificates of Indebtedness issued
When a bond conditioned for the repayment or payment
Capital Stock, Original Issue.
(Stamps must be attached to
the stock book, not to certificates.)
actual value less than $100 a share, on
Capital Stock and Rights, Sales or Transfers. (Stamps must
On par value stock, each $100 face value or fraction. . . .
Conveyances of Real Estate Not to Secure Debt. On consideration, less any lien or encumbrance at the time of sale, over $100 and not over $500....
Each additional $500 or fraction thereof.
Drafts or Checks Not Payable at Sight or on Demand. (Upon acceptance or delivery within the United States,
whichever is prior.)
On each $100 of face value, or fraction....
Renewals are taxed as new issues.
Entry of Goods, Wares or Merchandise at any Custom House.
Entry for Withdrawal of Goods or Merchandise from Custom
Merchandise, Sales of, on Exchange for Future Delivery. On each $100 in value of the merchandise....
Each additional $100 or fraction thereof..
Passage Tickets sold or issued in the United States for passage by vessel to places not in the United States,
Passage tickets costing less than $10 are exempt.
Playing Cards. On each pack containing not more than 54
Policies of Insurance (not including reinsurance policies), is-
Power of Attorney (with certain exceptions, see Schedule
Promissory Notes and each renewal thereof, per $100 face
Proxies for election of officers or for business meetings of cor-
Title IV, Sections 400-410, Revenue Act, 1921
The Estate Tax is levied against the transfer of the net estate of every person dying after November 23, 1921, the day the Revenue Act of 1921 was passed and became effective. It is imposed on the entire net estate and not upon the shares of the individual beneficiaries as is the case in a majority of the States which have legacy, inheritance or estate tax laws.