known at the time of receipt of fixed, annual, or periodical income by an individual whose income is subject to withholding of tax, the person entitled to and receiving such income may file with the person, firm, or corporation making the payment, a certificate, under penalty for false claim, stating the amount of such deductions and making a claim for an allowance of the same, whereupon there shall be no withholding upon the amount of such claim and such certificate shall become a part of the return to be made in behalf of the person making the claim. When, because of such claim, no tax shall have been withheld, the certificates nevertheless shall be forwarded, with letter of transmittal, to the collector of internal revenue for the district in which the withholding agent resides. A certificate for this purpose is provided in the following form: Form 1088. CERTIFICATE For Claiming Deductions—INDIVIDUALS. (For use by individuals in claiming at time of receipt of income under sec. 9 (b) benefit of deductions under secs. 5 and 6 of the income-tax law, act of Sept. 8, 1916.) (Character of income, as rent, salary, interest on bonds, mortgages, etc., and if latter give description of bonds, mortgages, etc.) I certify that the foregoing claim is for deductions to which I am entitled under the income-tax law, act of September 8, 1916, and that the amount claimed is not in excess of the deductions to which I am entitled under the law. for Date, Address: (Full post-office address of agent.) 191.. 1 NOTE 1.-To be filled in only when duly authorized agent executes this certificate payee, in which case the name and address of payee must be given. NOTE 2.-Claim for deductions on Form 1088 can be filed with the debtor or with withholding agent at any time, not less than 30 days prior to March 1 next succeeding the year for which return is due. SIGNATURE MUST BE CLEARLY AND LEGIBLY WRITTEN. This certificate shall be printed on yellow paper corresponding in weight and texture to white writing paper 21 by 32. It shall be in size 3 by 8 inches and shall be printed to read from left to right along the 8-inch dimension. Individuals or corporations desiring to print their own certificates may do so, but the certificates so printed shall conform in size and be printed upon the same color, shade, and grade of paper and in similar type to that used by the Government. OFFICE OF COMMISSIONER OF INTERNAL REVENUE, To collectors of internal revenue and others: The following formula, designated as No. 25, has been approved for the special denaturation of alcohol to be used exclusively in the manufacture of the tincture of iodine: To every 100 wine gallons by volume of ethyl alcohol of not less than 180° proof there shall be added 20 pounds by weight of iodine, such alcohol when so denatured to be used exclusively in the manufacture of tincture of iodine, in accordance with the requirements of the United States Pharmacopoeia. This formula can not be used in central denaturing bonded warehouses or distillery denaturing bonded warehouses, but the use thereof is authorized for the denaturation of alcohol in central distilling and denaturing plants, the same being one of the two classes of industrial distilleries established under subsection 2 of paragraph N of section 4, act of October 3, 1913, and supplement No. 2 to regulations 30. Permission must be obtained from this office to use a special denaturant in any central distilling and denaturing plant, as provided in articles 2 and 19 of said supplement. W. H. OSBORN, Commissioner of Internal Revenue. (T. D. 2414.) Affixing tax stamps to cases or casks of imported wine. Tax stamps may be affixed to casks or cases of imported wines, instead of being affixed to customs entry as provided in T. D. 2391 of November 6, 1916. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., December 11, 1916. COLLECTOR FIRST DISTRICT, St. Louis, Mo. SIR: This office is in receipt of your letter of the 2d instant, in reference to the payment of internal-revenue tax on imported wines, and to the desire of some importers in your district to stamp the packages or cases containing such wines, instead of affixing the required stamps to the customs entry, as provided in T. D. 36786 (customs) of November 6, 1916, and T. D. 2391 (internal revenue) of November 6, 1916. In reply, you are informed that the affixing of stamps to the customs entry in such cases is permitted as a matter of convenience to the importer, but where the importer prefers to stamp each package or case containing the wines this department sees no objection to having the tax paid in this manner. The removal of packages so stamped may be arranged with the customs officers at your port. Conditions under which tentative return may be filed and advance tax payment accepted. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., December 14, 1916. SIR: Receipt is acknowledged of your report of the 7th instant with regard to the liability to estate tax of the estate of You make specific inquiry with regard to the allowance of certain estimated deductions from the gross estate which were shown by the executor upon his preliminary return. Section 204 of the taxing act, in which provision is made for the allowance of a discount of 5 per cent for payment of tax before the expiration of one year from the death of the decedent, does not, of course, contemplate that, in order to take advantage of this discount, executors shall be permitted to make vague and inaccurate estimates of the value of the gross estate, or the extent of the legal deductions therefrom. If executors were permitted to make returns which were mere estimates it is obvious that they might oftentimes estimate the gross estate conservatively and estimate the deductions generously, or, at least, it could not be assumed that this had not been done, and it would, therefore, be necessary that in every case, after the final accounting of the executors, the Government should make a supplementary investigation to determine the true facts, since in the majority of the cases it would be probable that the tax had been underpaid in the first instance. Section 205 provides for the filing of the return at such times and in such manner as may be required under the regulations promulgated by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, and it is obvious that the proper time for return to be made is a time coincident, as nearly as possible, with the final settlement of the estate and the date upon which the estate tax is due. Since in many States more than a year from the decedent's death is allowed for administration, the time set by the regulations for the filing of the return was made coincident with the due date of the tax-that is, one year after decedent's death. Section 207 of the act relates primarily to the payment of the tax and not to the filing of the return, and it contemplates that, if at the time the tax is due it is impossible, because of delay in administration, for an exactly accurate return to be made, a tentative return may be filed and tax shown thereon to be due may be tentatively accepted by the collector. Neither section 205 nor section 207 contemplates that at any time return may be filed and tax paid without a reasonably approximate determination of the facts relating to the gross estate and the separate legal deductions. Therefore, when application is made to collectors for authority to file returns within one year from the death of the decedent whose estate is being returned, collectors will require that such tentative return be based upon determined or accurately determinable values of gross estate and items of deductions, and if the estate in question has not reached such a state of settlement that a reasonably accurate return can be made, advance payment of tax will not be accepted. Respectfully. W. H. OSBORN, Commissioner of Internal Revenue. INTERNAL REVENUE AGENT, Richmond, Va. (T. D. 2416.) Exportation of domestic wines free of tax under the act of September 8, 1916. TREASURY Department, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., December 12, 1916. Pursuant to the authority conferred in paragraph (d), section 402, of the act of September 8, 1916, the following regulations governing the exportation of domestic wines free of tax are prescribed: EXPORT BOND TO BE GIVEN. ARTICLE 1. Where domestic wines are to be removed from bonded premises, free of tax, for exportation, the party intending to export the same will file with the collector of internal revenue of the district in which such premises are located, a bond in the following form, to be executed in duplicate, one copy to be retained by the collector and one copy to be forwarded to the Commissioner of Internal Revenue: (FORM A.) (Domestic wines for export.) as principal, and Know all men by these presents, that we, and as sureties, are held and firmly bound to the United States of America in the sum of dollars, for the payment whereof to the United States we bind ourselves, our heirs, executors, administrators, and assigns, jointly and severally, firmly by these presents, as witness our hands and seals this day of 191-. The condition of this obligation is such, that whereas the above bounden principal intends to remove from the bonded premises No. district, State of located at of in the certain domestic wines without payment of the internal-revenue tax, for exportation from the United States under the provisions of section 402 of an act of Congress approved September 8, 1916. Now, therefore, if the said principal shall, as to all such wines so removed for exportation as aforesaid, faithfully and fully comply with all the requirements of said act of Congress and regulations issued pursuant thereto, and shall furnish or cause to be furnished to the collector of internal revenue for said district, and to the Commissioner of Internal Revenue, within 90 days from the date of each such removal, satisfactory evidence showing that the said articles have been duly exported to a port or place without the jurisdiction of the United States, then this obligation to be void; otherwise to remain in full force and virtue. Sealed and delivered in the presence of→ 24433°-VOL 18-16- -17 [SEAL.] [SEAL.] [SEAL.] |