Income Tax 
 Information 
 
 Rules and Regulations 
 
 IV 
 
 Compliments of 
 
 TRUST DEPARTMENT 
 
 iARRIS TRUST £r SAVINGS BANK 
 
 Organized as N. W. Harris Co. 1882. Incorporated 1907 
 
 HARRIS TRUST BUILDING, CHICAGO 
 
Income Tax 
 Information 
 
 Rules and Regulations 
 
 IV 
 
 Compliments of 
 
 TRUST DEPARTMENT 
 
 Harris Trust &- savings Bank 
 
 Organized as N. W. Harris &- Co. 1882. Incorporated 1907 
 
 HARRIS TRUST BUILDING, CHICAGO 
 
HARRIS TRUST &• SAVINGS BANK 
 
 (7\ D. 1894) 
 
 Income tax ruling as to how and by whom 
 certificates of ownership may be signed 
 in cases where bonds of corpora¬ 
 tions, joint stock companies, 
 or associations, and insur¬ 
 ance companies are 
 owned by nonres¬ 
 ident aliens. 
 
 Washington, D. C., Nov. 12, 1913. 
 
 To Collectors of Internal Revenue : 
 
 Coupons (or orders for registered in¬ 
 terest) payable in the United States, repre¬ 
 senting the interest on bonds owned by 
 non-resident aliens, must be accompanied 
 by the prescribed Certificate Form 1004, as 
 per Treasury Regulations of October 25, 
 1913—but this certificate may be signed 
 either by the owner himself (herself or 
 themselves) or in behalf of the owner by 
 a reputable bank or bankers, or other re¬ 
 sponsible collecting agency, certifying to 
 the ownership of the bonds and giving the 
 name and address of the bona fide non¬ 
 resident and alien owners, and when such 
 Certificate is thus attached the normal tax 
 of one per cent cn such coupons or interest 
 orders need not be withheld at the source 
 by the Debtor or collecting agency. 
 
 Respectfully, 
 
 W. H. OSBORN, 
 Commissioner. 
 
 Approved: 
 
 W. G. McADOO, 
 
 Secretary of the Treasury. 
 
 ——-— ——.——-—--—--■ — M 
 
HARRIS TRUST SAVINGS BANK 
 
 (T. D. 1897) 
 
 Instructions to Collectors Relative to Corpora¬ 
 tions, Joint-Stock Companies or Associa¬ 
 tions, and Insurance Companies Mak¬ 
 ing Return of Annual Net Income 
 for Their Fiscal Years Instead 
 of the Calendar Year . 
 
 Washington, P. C., Nov. 14, 1913. 
 
 To Collectors of Internal Revenue: 
 
 The Federal income-tax law (section 2, 
 act of Oct. 3, 1913) authorizes corpora¬ 
 tions, joint-stock companies, etc., under 
 certain conditions to make their returns on 
 the basis of an established “fiscal year,” 
 or consecutive 12-months’ period, which 
 may be other than the calendar year. 
 
 Pursuant to this provision, the following 
 instructions are issued for the guidance of 
 collectors and other interested parties: 
 
 Any corporation, joint-stock company or 
 association, or any insurance company, sub¬ 
 ject to the tax imposed by this act, may, at 
 its option, have the tax payable by it com¬ 
 puted upon the basis of the net income re¬ 
 ceived (accrued) from all sources during 
 its fiscal year, provided that it shall desig¬ 
 nate the last day of the month selected as 
 the month in which its fiscal year shall close 
 as the day of the closing of its fiscal year, 
 and shall, not less than thirty days prior to 
 the date upon which its annual return is to 
 he filed, give notice, in writing, to the col¬ 
 lector of internal revenue of the district in 
 which its principal place of business is lo¬ 
 cated, of the day it has thus designated as 
 the closing of such fiscal year. 
 
 In pursuance of this provision, a cor¬ 
 poration or like organization subject to this 
 tax may, for example, designate the 30th 
 day of September as the day for the clos¬ 
 ing of its fiscal year, whereupon its return 
 of annual net income shall be filed with the 
 collector of internal revenue of the district 
 * in which its principal place of business is 
 located not later than 60 days after the 
 close of its said proposed fiscal year; that 
 
 3 
 
HARRIS TRUST dr SAVINGS BANK 
 
 is to say, on or before the 29th day of No¬ 
 vember next succeeding. 
 
 The date of the closing of the fiscal year 
 having been designated, notice thereof must 
 be given to the collector not less than thirty 
 days prior to the last day of such sixty- 
 day period. In the case just instanced, the 
 notice must be given not later than Octo¬ 
 ber 31. 
 
 If such designation (Sept. 30, 1913), had 
 been made and notice given, as hereinbefore 
 indicated, as to the closing of the fiscal year 
 1913, the corporation would be authorized 
 to make its return and have the tax payable 
 by it computed upon the basis of the net 
 income received (accrued) by it during the 
 period from January 1 to September 30, 
 1913, both dates inclusive. 
 
 In the absence of such designation and 
 notice of the closing of the fiscal year cor¬ 
 porations and like organizations subject to 
 this tax will be required to make their re¬ 
 turns and have the tax computed upon the 
 basis of the net income for the calendar 
 year. 
 
 Collectors of internal revenue receiving 
 notices of the selection and designation of 
 the “fiscal years,” as above indicated, will 
 make record of the same, recording (a) 
 the name of the corporation or like organi¬ 
 zation, ( b ) the date when the notice was 
 given, (c) the day designated for the clos¬ 
 ing of the fiscal year, and ( d ) the date when 
 the return under such designation must be 
 filed, which must be, as above stated, not 
 later than the last day of the 60-day period 
 next following the day designated as the 
 close of the fiscal year. 
 
 If it shall appear that for the current 
 year the notice was given within the pre¬ 
 scribed time—that is, within 30 days of the 
 last day of the 60-day period—the 1913 
 return may be made as of the fiscal year 
 so established; otherwise it will be made 
 on the basis of the calendar year until such 
 time as the designation shall be duly made 
 and notice thereof properly given. 
 
 The designation and notice can not be 
 retroactive; that is to say, if a corporation 
 
 4 
 
HAPvRJS TRUST 6- SAVINGS BANK 
 
 now designates April 30, 1914, as the date 
 of the closing of its fiscal year and gives 
 notice of such designation, it would not be 
 authorized to make a return for the 4 
 months ended April 30, 1913, and then for 
 the fiscal year ended April 30, 1914, nor 
 would it be authorized to make one return 
 covering the entire 16 months ended April 
 30, 1914. In the case of such corporation 
 the return for the current year must be 
 made for the calendar year ended Decem¬ 
 ber 31, 1913, and then assuming that desig¬ 
 nation and notice had been properly made 
 and given, it may make a return for the 
 4 months ended April 30, 1914, and there¬ 
 after the return will be made on the basis 
 of the fiscal year so established. 
 
 In all cases where a fiscal year is not 
 established as above prescribed returns 
 must be made on the basis of the calendar 
 year, in which case such returns must be 
 filed on or before the 1st day of March 
 next succeeding such calendar year. 
 
 Such returns, for the period covered, 
 must be true and accurate, definite and com¬ 
 plete, and, in as far as consistent with the 
 provisions of the law, must conform to the 
 showing made by the books of the com¬ 
 pany, and must be verified under oath or 
 affirmation of its president or other principal 
 officer, and its treasurer or assistant treas¬ 
 urer; that is to say, by two different per¬ 
 sons acting in the official capacity indicated. 
 
 If it shall appear in any case that re¬ 
 turns have been made to the collector on 
 the basis of a fiscal year not designated as 
 above indicated, the corporations making 
 such returns will be advised that such re¬ 
 turns can not be accepted, but must be 
 made to cover the business of the calendar 
 year. 
 
 Returns made under this act and pur¬ 
 suant to these instructions must be made 
 on the new forms prescribed by this de¬ 
 partment. 
 
 The forms heretofore in use, under the 
 special excise-tax law, can not be used for 
 making returns for either the fiscal or cal¬ 
 endar year 1913. 
 
 5 
 
H A KM S TRUST 6- SAVINGS BANK 
 
 If returns of such corporations as have 
 properly established a fiscal year are due 
 to be made before the new forms are avail¬ 
 able, the collector will be authorized to 
 grant an extension of time to such corpora¬ 
 tions, not exceeding 30 days, for the filing 
 of such returns, by which time the new 
 forms prescribed will be available for dis¬ 
 tribution. W. H. Osborn, 
 
 Commissioner. 
 
 Approved: 
 
 W. G. McAdoo, 
 
 Secretary of the Treasury. 
 
 (T. D. 1901) 
 
 Waiver Until March 31, 1914, of Treasury 
 Requirements for the Filing in on Certi¬ 
 ficates of the Numbers of the Bonds of 
 
 Corporations, Etc., Upon the Interest 
 From Which the Normal Income Tax 
 of One Per Cent Is Required To be 
 Deducted at the Source Under the 
 Provisions of the Income Tax 
 Law. 
 
 Washington, D. C., Nov. 28, 1913. 
 
 Notice is hereby given that the Treasury 
 Regulations heretofore issued, which re¬ 
 quire that the numbers of the bonds, or 
 other like obligations of corporations, etc., 
 from which interest coupons are detached, 
 or upon which registered interest is to be 
 paid, shall be filled in on the Certificates, 
 are hereby waived, so far as the tilling in of 
 the numbers of the bonds or other such 
 obligations on the Certificate is concerned, 
 until March 31, 1914. 
 
 In all other respects, the Certificates re¬ 
 ferred to must be filled in in accordance 
 with the Treasury Regulations, before the 
 coupons or orders for registered interest to 
 which they may be attached shall be paid. 
 
 W. H. Osborn, 
 
 Commissioner of Internal Revenue. 
 
 Approved: November 28, 1913. 
 
 W. G. McAdoo, 
 
 Secretary of the Treasury. 
 
 6 
 
HAKKIS TRUST £r SAVINGS BANK 
 
 (T D. 1902) 
 
 Extension of Time for Use of Temporary Form 
 
 1005, From November 16, 1913, to Janu¬ 
 ary 15, 1914, So Far as Foreign 
 Holders of Coupons and In¬ 
 terest Orders May Be 
 Concerned. 
 
 Washington, D. C., Nov. 28, 1913. 
 
 The time for the use of Temporary Cer¬ 
 tificate, Form 1005, shall be extended from 
 November 16, 1913, to January 15, 1914, 
 when signed by a person, firm or corpora¬ 
 tion licensed under Paragraph E, of the In¬ 
 come Tax Law, provided such form shall 
 only be used in cases where the coupons to 
 which it shall relate shall have been re¬ 
 ceived by such licensed person, firm, or cor¬ 
 poration from a foreign country. 
 
 W. H. Osborn, 
 Commissioner. 
 
 Approved : November 28, 1913. 
 
 W. G. McAdoo, 
 
 Secretary of the Treasury. 
 
 ( T. D. 1903) 
 
 Regulations Permitting the Substitution, 
 Under Certain Conditions, of the Certifi¬ 
 cates of Banks, Bankers, or Other Collect¬ 
 ing Agents, for the Certificates of the 
 Owners Required To Be Attached to 
 Interest Coupons When Presented 
 for Collection, Under Income Tax 
 Regulations of October 25, 1913, 
 and Those Supplementary 
 Thereto. 
 
 Washington, D. C., Nov. 28, 1913. 
 
 Treasury Regulations of October 25, 
 1913, and those supplementary thereto, re¬ 
 quire that, under the conditions therein pre¬ 
 scribed, there shall be attached to interest 
 coupons, maturing on bonds and other sim¬ 
 ilar obligations of corporations, etc., which 
 may be presented for collection certain cer¬ 
 tificates of ownership signed by the owners 
 of the bonds from which the coupons were 
 detached or by their duly authorized agents. 
 
 7 
 
HARMS TRUST y SAVINGS BANK 
 
 Notice is hereby given that responsible 
 banks, bankers and collecting agents receiv¬ 
 ing coupons for collection with the afore¬ 
 said certificates of ownership attached, may 
 either present the coupons with the at¬ 
 tached certificates to the debtor or withhold¬ 
 ing agent for collection, or, at the option of 
 the collecting agent, the certificates above 
 referred to may be detached from such cou¬ 
 pons and forwarded direct to the Commis¬ 
 sioner of Internal Revenue at Washington, 
 D. C., as hereinafter set forth, provided, 
 such bank, banker or collecting agent shall 
 thereupon substitute for said owners’ cer¬ 
 tificate and attach to said coupons, in 
 lieu of said certificate of owner, a cer¬ 
 tificate signed by said bank, banker or col¬ 
 lecting agent, to whom said coupons may 
 have been first presented for collection, in 
 substantially the following form: 
 
 Form 1000A 
 
 FORM OF CERTIFICATE TO BE ATTACHED TO 
 
 INTEREST COUPONS IN CASES WHERE THE 
 COLLECTING AGENT’S CERTIFICATE 
 IS SUBSTITUTED FOR THE CER¬ 
 TIFICATE OF THE OWNERS. 
 
 The owner’s certificate, of which the fol¬ 
 lowing certificate is the counterpart, and 
 bears the same number as this certificate, 
 will be sent by the collecting agent direct 
 to the Commissioner of Internal Revenue, at 
 Washington, as prescribed by Regulations. 
 
 No. 
 
 I (we).do solemn- 
 
 (Narae of collecting agent) 
 
 ly declare that the owner of $. 
 
 bonds of the. 
 
 (Name of debtor organization) 
 
 from which were detached the accompany¬ 
 ing interest coupons due. 
 
 (Maturity) 
 
 191. .., amounting to $. 
 
 has filed with me (us) a duly executed cer¬ 
 tificate filled up in accordance with Treas¬ 
 ury Regulations of October 25, 1913, Form 
 No., which certificate has been 
 
 8 
 
HARRIS TRUST &» SAVINGS BANK 
 
 indorsed by me (us) as follows : “Owner’s 
 
 certificate No. 
 
 .191...” 
 
 (Name of collecting agency) 
 and in which the said owner does claim, 
 
 (does not) 
 
 with respect to the income represented by 
 said interest, the benefit of a reduction of 
 $., allowed under Para¬ 
 
 graph C, Section II, of the Federal Income 
 Tax Law, the total exemption to which said 
 owner now claims to be entitled thereun¬ 
 der being $.. and I (we) 
 
 do hereby promise and pledge myself to 
 
 ( ourselves) 
 
 forward the above described certificate exe¬ 
 cuted by the owners as stated and dated, 
 
 ., 191..., to the 
 
 Commissioner of Internal Revenue, at 
 Washington, D. C., not later than the 20th 
 day of next month, in accordance with 
 Treasury Regulations. 
 
 (Signature of Collecting Agent) 
 
 Address. 
 
 Date.,191... 
 
 The certificate of the owner, for which 
 the foregoing certificate of the collecting 
 agent may be thus substituted by the col¬ 
 lecting agent first receiving said coupons for 
 collection must be given the following en¬ 
 dorsement by the collecting agents and 
 should be made preferably with a rubber 
 stamp: 
 
 “Owner’s Certificate No. 
 
 (Name of Collecting Agency) 
 
 .191. 
 
 (Give Date of Certificate) 
 
 The counterpart of the within certifi¬ 
 cate bearing like number was attached 
 to the coupons within mentioned for 
 delivery to the debtor or withholding 
 agent, by whom the coupons are pay¬ 
 able.” 
 
 Certificates of owners for which collect¬ 
 ing agents’ certificates are substituted must 
 
 9 
 
HARRIS TRUST &■ SAVINGS BANK 
 
 be forwarded to the Commissioner of In¬ 
 ternal Revenue at Washington, D. C., by 
 the collecting agency receiving them not 
 later than the twentieth day of the month 
 succeeding that in which said coupons were 
 thus received for collection. 
 
 All banks, bankers, or other collecting 
 agents who may substitute their certificates 
 for the certificates of owners under the 
 foregoing plan will be required to keep a 
 complete record of all such transactions 
 and substitutions of certificates, showing all 
 certificates for which the collecting agents’ 
 certificates have been issued in lieu of the 
 owners’ certificates. 
 
 This record should be kept by months 
 and should give the following information: 
 
 Serial number of item received. 
 
 Date received. 
 
 Name of person from whom re¬ 
 ceived. 
 
 Address. 
 
 Name of debtor corporation. 
 
 Class of bond from which coupons 
 were cut. 
 
 Face amount of coupons collected. 
 
 Deductions from tax claimed by own¬ 
 ers under Paragraph C of Federal In¬ 
 come Tax Law. 
 
 Amount of interest collected. 
 
 Until the further ruling by this Depart¬ 
 ment the banks, bankers and other collect¬ 
 ing agents who may substitute their certifi¬ 
 cates for the certificates of owners under 
 the foregoing plan will not be required to 
 secure a License from the Treasury De¬ 
 partment for being permitted to make such 
 substitutions of their own certificates for 
 those of the owners, provided these regu¬ 
 lations are strictly complied with. 
 
 The permission to banks, bankers and 
 collecting agents to substitute their own 
 certificates under the above regulations for 
 those of the owners of the bonds, etc., will 
 extend to responsible banks, bankers and 
 
 10 
 
HARRIS TRUST &■ SAVINGS BANK 
 
 collecting agents in foreign countries, as 
 well as to those of the United States. 
 
 W. H. Osborn, 
 
 Commissioner of Internal Revenue. 
 Approved, Nov. 28, 1913 : 
 
 W. G. McAdoo, 
 
 Secretary of the Treasury. 
 
 ( T. D. 1904) 
 
 Supplemental Regulations Relative to Duly 
 
 Authorized Agent’s Authority to Sign 
 Certificates of Ownership Which 
 Accompany Coupons or Reg - 
 isterd Interest Orders 
 When Presented 
 for Collec¬ 
 tion, 
 
 Washington, D. C., Nov. 28, 1913. 
 
 Certificates of ownership, which are re¬ 
 quired to accompany all coupons or regis¬ 
 tered interest orders under regulations made 
 in pursuance of Section 2, Act of October 
 3, 1913, may be signed in the name of the 
 owner of the bonds, by his duly authorized 
 agent, and the said certificates shall give 
 the full name and address of both the 
 owner and his authorized agent. 
 
 If the person, firm or organization to 
 whom the certificate thus signed is pre¬ 
 sented for collection, is reasonably satisfied 
 as to the identity and responsibility of the 
 person signing as duly authorized agent, 
 he or it shall stamp or write on the face of 
 said certificate, “Satisfied as to identity and 
 responsibility of agent,” giving name and 
 address of person thus certifying, and said 
 certificate may then be accepted by persons, 
 firms, or organizations to whom presented 
 without requiring further evidence as to 
 authority of agent. 
 
 If the person, firm, or organization first 
 receiving certificate of ownership signed by 
 an agent is not satisfied or can not satisfy 
 himself or itself as to the agent’s identity 
 and responsibility, then, in that event, the 
 authorized agent shall furnish evidence of 
 his authority so to act, which evidence will 
 
 li 
 
HAKRIS TRUST & SAVINGS BANK 
 
 be retained by the person, firm, or organiza¬ 
 tion receiving it, and the certificate of own¬ 
 ership shall then be endorsed as provided 
 herein. 
 
 W. H. Osborn, 
 
 Commissioner of Internal Revenue. 
 
 Approved: 
 
 W. G. McAdoo, 
 
 Secretary of the Treasury. 
 
 (T. D. 1905) 
 
 Supplemental Regulations Relative to Partner¬ 
 ships, 
 
 Washington, D. C., Nov. 28, 1918. 
 
 Inasmuch as individual members of a 
 partnership are liable for income tax upon 
 their respective interest in the net earnings 
 of said partnership and are required to in¬ 
 clude said net earnings in their personal 
 returns, the partnership may file with the 
 debtor corporation, or with a withholding 
 agent, a notice, signed in the name of the 
 partnership, by a member thereof, claiming 
 a deduction of a specific amount on account 
 of the legitimate expenses (not includ¬ 
 ing the personal or living expenses of the 
 partners) incurred in conducting the busi¬ 
 ness of said partnership, and upon receipt 
 of said notice, said withholding agent shall 
 not withhold, and shall not be held liable 
 for, the normal tax on the amount of in¬ 
 come equal to the amount of deduction 
 claimed in said notice, but in no event shall 
 the total of the amounts claimed, as pro¬ 
 vided herein, be in excess of the total 
 amount of the actual legitimate annual ex¬ 
 penses incurred by said partnership in the 
 conduct of its business. Application for 
 such deduction shall be made in substan¬ 
 tially the following form: 
 
 12 
 
HARRIS TRUST &• SAVINGS BANK 
 
 Form 1011 
 
 FORM OF CERTIFICATE TO BE FILED WITH 
 WITHHOLDING AGENTS BY PARTNER¬ 
 SHIPS CLAIMING DEDUCTIONS. 
 
 “I, .. a member 
 
 of the firm or partnership of. 
 
 of.. conducting a busi¬ 
 ness of. 
 
 (Give character of business conducted by partnership.) 
 
 and residing at., do solemnly 
 
 (Give full address.) 
 
 declare that the said partnership is the 
 
 owner of $. bonds 
 
 of the denomination of $. 
 
 each, Nos. of 
 
 the.known 
 
 (Give name of debtor.) 
 
 as . bonds, 
 
 (Describe the particular issue of bonds. 
 
 from which were detached the accompany¬ 
 ing interest coupons, due. 
 
 ., 191..., amounting to 
 
 $., or 
 
 upon which there matured. 
 
 .191..., $... 
 
 of registered interest, or is the owner of 
 . upon 
 
 (Property or investments.) 
 
 which there accrued.. 
 
 191..., $. of 
 
 income. 
 
 We hereby claim a deduction of $. 
 
 . allowed on account 
 
 of the actual expenses incurred in conduct¬ 
 ing said business under regulations made 
 in pursuance of Section 2, Act of October 
 3, 1913, and do solemnly declare that 
 neither the partnership nor its individual 
 members has claimed deductions in excess 
 of its total actual legitimate annual ex¬ 
 penses of conducting the business of said 
 partnership, and that no portion of the liv¬ 
 ing or personal expenses of the partners is 
 included in the deductions claimed. 
 
 Name of Signing Partner. ..." . 
 
 For. 
 
 i (Name of partnership.) 
 
 Address. 
 
 Date., 191... 
 
 13 
 
HARRIS TRUST 6- SAVINGS BANK 
 
 Partnerships are not subject as partner¬ 
 ships to the income tax and are required to 
 make statements of their income and earn¬ 
 ings as partnerships only when requested 
 to do so by the Commissioner of Internal 
 Revenue or the Collector of Internal Rev¬ 
 enue for the district in which said partner¬ 
 ship has its principal place of business, and 
 when such a statement is required, as 
 aforesaid, the said statement shall give a 
 complete and correct report of the gross 
 income of the said partnership and also a 
 complete account of the actual legitimate 
 annual expenses of conducting the business 
 of said partnership (not including living 
 and personal expenses of the partners) and 
 the net profits and the name and address 
 of each of the members of said partner¬ 
 ship and their respective interest in the net 
 profits thus reported. 
 
 The net annual income of a partnership 
 when apportioned and paid to the members 
 thereof, shall be returned by each individ¬ 
 ual partner receiving same, in his annual 
 return of net income and the tax shall be 
 paid thereon by said individual partner, as 
 required by law. 
 
 When the annual income of a partner¬ 
 ship is not distributed and paid to the mem¬ 
 bers thereof, the respective interest of each 
 member in said profits shall be ascertained, 
 and the individuals entitled thereto shall 
 include the said amount in their annual re¬ 
 turn as part of their gross income, the same 
 as if said profits had been distributed and 
 paid to them. 
 
 Undivided annual net income of partner¬ 
 ships thus returned by the individual mem¬ 
 bers thereof, upon which the tax shall have 
 been paid, shall not, when said profits are 
 actually distributed and paid to the part¬ 
 ners, be again included in their annual re¬ 
 turn as a part of their gross income. 
 
 Foreign partnerships or firms, all the 
 members of which are both citizens or sub¬ 
 jects and residents of a foreign country, 
 which are the owners of bonds and mort¬ 
 gages or deeds of trust or other similar 
 
 14 
 
HARRIS TRUST 6- SAVINGS BANK 
 
 obligations, including equipment trust 
 agreements, receivers' certificates, and 
 stocks, of corporations, joint-stock compa¬ 
 nies or associations and insurance com¬ 
 panies organized or doing business in the 
 United States, may file with the debtor or 
 withholding agent, with their coupons or 
 orders for registered interest, or orders for 
 other income derived from property or in¬ 
 vestments in the United States, certificate 
 and notice of ownership, setting forth the 
 facts as to nonresidence and alienship, and 
 the debtor or withholding agent shall not 
 withold any part of their said income. 
 
 Where a foreign partnership or firm is 
 composed of both nonresident foreigners 
 and citizens of the United States, or for¬ 
 eigners resident in the United States or its 
 possessions, the certificate of ownership 
 shall show this fact, and the name and legal 
 address of each member of said partnership, 
 who is a citizen of the United States or who 
 is a foreigner residing in the United States 
 or its possessions, shall be given on the said 
 certificate and no part of said income shall 
 be withheld by the paying agent. 
 
 The said certificate and notice of owner¬ 
 ship shall be in substantially the following 
 form : 
 
 Form 1014 
 
 FORM OF CERTIFICATE TO BE PRESENTED 
 
 WITH COUPONS OR INTEREST, OR OTHER 
 INCOME ORDERS, DETACHED FROM 
 BONDS OR OTHER OBLIGATIONS 
 OWNED BY PARTNERSHIP 
 OR FIRMS OF FOREIGN 
 COUNTRIES 
 
 I, ., a member of the 
 
 firm or partnership of.of 
 
 .and residing at., 
 
 .do solemnly declare 
 
 (Give full address.) 
 
 that the said partnership is the owner of 
 
 $. bonds of the denomination of 
 
 $.each, Nos. 
 
 of the. 
 
 (Give name of debtor.) 
 
 known as.from which 
 
 (Describe particular issue of bonds.) 
 
 were detached the accompanying interest 
 
 15 
 
HARRIS TRUST SAVINGS BANK 
 
 coupons, due. 191, amount¬ 
 ing to $.. or upon which there 
 
 matured. 191..., $. 
 
 of registered interest, or is the owner of 
 
 (Property or investments.) 
 
 upon which there has accrued.. 
 
 191..., $.of income and that 
 
 all the members of said firm or partnership, 
 except. 
 
 (Give name and address of partners not non- 
 
 ., are nonresident for- 
 
 resident aliens.) 
 
 eigners and as such are exempt from the 
 income tax imposed on such income by the 
 United States Government under the law 
 enacted October 3, 1913, and that no citi¬ 
 zen of the United States, wherever resid¬ 
 ing, or foreigner residing in the United 
 States, or any of its possessions, except 
 those named above, has any interest in said 
 bonds, coupons or interest. 
 
 Name of partner signing. 
 
 For . 
 
 me of partnership) 
 
 Address. 
 
 Date.191- 
 
 W. H. Osborn, 
 
 Commissioner of Internal Revenue. 
 Approved: 
 
 W. G. McAdoo, 
 
 Secretary of the Treasury. 
 
 (T. D. No. 1906.) 
 
 Supplemental Regulations Designating Guard¬ 
 ians, Trustees, Executors, Administrators, 
 Agents, Etc., as the “Source” for Purpose 
 oi Collecting Income Tax and as to 
 Making Annual and List Returns 
 and Withholding Tax. 
 
 Washington, D. C., November 28, 1913. 
 Guardians, trustees, executors, adminis¬ 
 trators, agents, receivers, conservators, and 
 all persons, corporations, or associations 
 
 16 
 
H APvKI S TRUST &- SAVINGS BANK 
 
 acting in any fiduciary capacity herein¬ 
 after referred to and known as the fiduci¬ 
 ary, who hold in trust an estate of another 
 person or persons shall be designated the 
 “source” for the purpose of collecting the 
 income tax, and by filing the following 
 notice with other debtors or withholding 
 agents, said fiduciary shall be exempt from 
 having any income due to them as such, 
 withheld for any income tax by any other 
 debtor or withholding agent. 
 
 Other debtors or withholding agents, 
 upon receipt of this notice, shall refrain 
 from withholding any part of such income 
 from said Fiduciary and will not, in such 
 case, be held liable for normal tax of 1 
 per cent due thereon. The form of no¬ 
 tice to be filed with the debtor or withhold¬ 
 ing agent by the Fiduciary shall be sub¬ 
 stantially, as follows: 
 
 Form 1015 
 
 FORM OF CERTIFICATE TO BE FILED WITH 
 DEBTOR OR WITHHOLDING AGENTS 
 BY FIDUCIARIES. 
 
 The following form of certificate should 
 be filed with the debtor, or its paying 
 agents, at the time of the payment to the 
 Fiduciary, or his representative, of all cou¬ 
 pons, interest orders, rents, and all other 
 kinds of income whatsoever upon which 
 the tax on income is required to be with¬ 
 held at the source. 
 
 “I (we) do solemnly declare that I (we) 
 
 (Name Fiduciary.) 
 
 am (are) the duly authorized. 
 
 (Indicate in 
 
 .for the beneficiaries 
 
 what capacity acting - .) 
 
 of the estate or trust of., 
 
 which estate or trust is entitled to the in¬ 
 come from $.bonds of the de¬ 
 nominations of $. each. Nos. 
 
 of the. 
 
 (Give name of debtor.) 
 
 known as. 
 
 (Describe the particular issue of bonds.) 
 
 17 
 
HARRIS TRUST &■ SAVINGS BANK 
 
 bonds, from which were detached the ac¬ 
 companying coupons, due ., 
 
 191. .amounting to $., or 
 
 upon which there has matured., 
 
 191.. ., $. of registered inter¬ 
 
 est, or which estate or trust is entitled to 
 other income from property or investments 
 upon which there accrued ., 
 
 191.. $.of income. 
 
 Acting for and in the capacity as stated 
 
 herein, I (we) hereby assume the duty and 
 responsibility, imposed upon withholding 
 agents under the law, of withholding 
 and paying the income tax due, for which 
 I (we) may be liable, and acting in said 
 fiduciary capacity as stated herein, I (we) 
 do hereby claim exemption from having 
 the normal tax withheld from said income. 
 
 (Name) (Capacity in \£hich acting.) 
 
 Address: . 
 
 Date.191.... 
 
 RETURNS MADE BY FIDUCIARY 
 AGENTS. 
 
 Said Fiduciaries shall, on or before 
 March first of each year, when the annual 
 interest of any beneficiary in said income 
 is in excess of $3,000, make and render a 
 return of the income of the person or per¬ 
 sons for whom they act, to the Collector 
 of Internal Revenue of the district in which 
 the Fiduciary resides. 
 
 This return shall give an itemized state¬ 
 ment of the gross income and deductions 
 claimed and shall be in the same form as 
 prescribed for annual returns made by in¬ 
 dividuals. 
 
 Said Fiduciary acts for, and in behalf 
 of, the beneficiaries of said trust; and the 
 annual return required as above in behalf 
 of said beneficiaries has reference only to 
 the income accruing and payable through 
 said Fiduciary, and not the income of said 
 beneficiaries from other sources, unless the 
 said Fiduciary is legally authorized to act 
 for said beneficiaries in their individual 
 
 18 
 
HARRIS TRUST &- SAVINGS BANK 
 
 capacity, in which case said Fiduciary, act¬ 
 ing as duly authorized agent of the individ¬ 
 ual, shall also make the personal annual 
 return as provided by law. 
 
 There shall accompany the annual return 
 of said Fiduciary a list giving the name and 
 full address of each beneficiary and the 
 share of said income to which each may 
 be entitled. 
 
 LIST RETURNS FILED BY FIDUCIARY 
 AGENTS. 
 
 Fiduciary agents, in addition to the an¬ 
 nual return of income required by these 
 regulations, shall make an annual list re¬ 
 turn, as provided by regulations for with¬ 
 holding agents, whenever payments of in¬ 
 come to any beneficiary is in excess of 
 $3,000. Said list return shall be made on 
 or before March first of each year to the 
 Collector of Internal Revenue for the dis¬ 
 trict in which said Fiduciary resides or has 
 his principal place of business, giving name 
 and address of each beneficiary of said 
 trust, to whom annual income in excess of 
 $3,000 is paid, the amount of income paid 
 to each beneficiary, giving source of in¬ 
 come, the amount of exemption claimed by 
 each beneficiary, if any, and the amount of 
 income withheld for tax, and the said list 
 return shall be signed by the Fiduciary 
 making same, stating in what capacity act¬ 
 ing, and give his name and full address. 
 
 Fiduciaries having an annual income that 
 is not distributed or paid to the beneficiaries 
 of the trust under which said Fiduciary 
 acts shall make an annual list return, as 
 provided herein, and said list return shall 
 show the name and address of each ben¬ 
 eficiary having a distributive interest in said 
 income in excess of $3,000, stating the dis¬ 
 tributive amount of each beneficiary, and 
 shall give all information as required in 
 said list returns, and shall withhold and pay 
 to the collector, as provided by law, the nor¬ 
 mal tax of one per cent upon the distribu¬ 
 tive interest of each of said beneficiaries in 
 excess of $3,000, the same as if said income 
 
 19 
 
HARRIS TRUST &- SAVINGS BANK 
 
 was actually distributed and paid; exemp¬ 
 tion under paragraph C, however, may be 
 claimed by the beneficiary or his legal rep¬ 
 resentative by filing his claim for exemp¬ 
 tion with the Fiduciary agent. 
 
 When the fiduciary agents deduct, with¬ 
 hold and pay the normal tax on undivided 
 annual net income as provided herein, they 
 shall not be required to withhold and pay 
 again the normal tax on said income when 
 actually distributed and paid to said ben¬ 
 eficiaries, nor shall the beneficiaries be re¬ 
 quired again to pay the normal tax on 
 the amounts on which the tax has been paid 
 when such amounts are distributed. 
 
 Where the normal tax is withheld and 
 paid by fiduciary agents on undivided an¬ 
 nual income, beneficiaries (or their legal 
 representatives) in whose behalf said tax 
 is paid may file notice with said fiduciary 
 and claim the benefit of any annual ex¬ 
 emption they may be entitled to under par¬ 
 agraph C of the Act of October 3, 1913, as 
 provided by regulations, the same as if their 
 distributive interest in said income was 
 actually paid. 
 
 W. H. Osborn, 
 
 Commissioner of Internal Revenue. 
 
 Approved: 
 
 W. G. McAdoo, 
 
 Secretary of the Treasury. 
 
 (T. D. No. 1907.) 
 
 Supplemental Instructions as to Acceptance 
 of Certificate Form 1000 as Originally Pre¬ 
 scribed in Regulations of October 25,1913; 
 and the Original and Amended Form 
 1000 as It Has Been Adapted to the 
 Use of Fiduciary Agents; and Cer¬ 
 tificate Forms 1001, 1003 and 1004 
 as They Have Been Adapted To 
 the Use of Foreign Organiza¬ 
 tions and Partnerships. 
 
 Washington, D. C., November 26, 1913. 
 
 Certificates of ownership, Form 1000, as 
 originally prescribed in Regulations of Oc¬ 
 tober 25, 1913, shall be accepted by debt- 
 
 20 
 
HARRIS TRUST dr SAVINGS BANK 
 
 ors or withholding agents when properly 
 filled in and signed by the owner of the 
 bonds or his duly authorized agent until 
 December 10, 1913, and after that date only 
 the amended Form 1000, as prescribed by 
 Regulations, shall be accepted. 
 
 Form 1000, original and amended, as it 
 has been adapted to the use of guardians, 
 trustees, executors, administrators, agents, 
 receivers, conservators, and all persons, 
 corporations or associations acting in a 
 fiduciary capacity, when properly filled in 
 and signed and giving the information re¬ 
 quired by the regulations, shall be accepted 
 by debtors or withholding agents until reg¬ 
 ulations giving a prescribed form of certifi¬ 
 cates of ownership for fiduciary agents are 
 issued, and for thirty days thereafter. 
 
 Forms 1001, 1003 and 1004, as they have 
 been adapted to the use of foreign organ¬ 
 izations and foreign partnerships, when 
 properly filled in and signed and giving the 
 information required by regulations, shall 
 be accepted by debtors or withholding 
 agents until regulations giving a prescribed 
 form of certificate of ownership for foreign 
 organizations and foreign partnerships are 
 issued, and for thirty days thereafter. 
 
 W. H. Osborn, 
 
 Commissioner of Internal Revenue. 
 
 Approved: 
 
 W. G. McAdoo, 
 
 Secretary. 
 
 (T. D. No. 1908.) 
 
 Regulations Prescribing Form of Certificate 
 To Be Furnished by Foreign Organizations 
 Not Engaged in Business in the United 
 States and not Subject to the 
 Income Tax on Interest or 
 Other Income Collectible 
 at the Source. 
 
 Washington, D. C., November 28, 1913. 
 
 The certificate to be furnished by foreign 
 ) organizations not engaged in business in 
 the United States shall be in substantially 
 the following form: 
 
 * 
 
 21 
 
HARRIS TRUST dr SAVINGS BANK 
 
 CERTIFICATE TO BE FURNISHED BY FOREIGN 
 ORGANIZATIONS NOT SUBJECT TO TAX 
 ON INTEREST OR OTHER INCOME 
 AT SOURCE. 
 
 I,.the 
 
 A, . . . 
 
 (Give name.) 
 
 
 of the , 
 
 (Give official position.) 
 
 
 a. 
 
 (Name of organization.) 
 
 
 of -- 
 
 (Character of organization.) 
 
 
 (Country.) 
 
 Located at. 
 
 (Postoffice address.) 
 
 do solemnly declare that said. 
 
 (Give name of organization.) 
 
 is a foreign organization, not engaged in 
 business in the United States, and is the 
 owner of $. bonds of the de¬ 
 nomination of $. each, Nos. 
 
 of the.known as 
 
 (Give name of debtor.) 
 
 (Describe particular issue of bonds.) 
 
 bonds, from which were detached the ac¬ 
 companying coupons, due., 
 
 191..., amounting to $. or 
 
 upon which there matured., 
 
 191..., $., of registered inter¬ 
 est, or is the owner of. 
 
 (Property or investments.) 
 
 upon which there was accrued., 
 
 191..., $.of income, and that 
 
 under the provisions of the Income Tax 
 Law, of October 3, 1913, said organization 
 being a foreign organization, said interest 
 or income is exempt from the payment of 
 
 22 
 
HARRIS TRUST 6- SAVINGS BANK 
 
 taxes collectible at the source, which ex¬ 
 emption is hereby claimed. 
 
 Date., 191. . 
 
 Name., 
 
 (Official position.) 
 
 Of. 
 
 (Name of Organization.) 
 
 Address. 
 
 (Postoffice.) 
 
 W. H. Osborn, 
 
 Commissioner of Internal Revenue. 
 
 Approved: November 28, 1913. 
 
 W. G. McAdoo, 
 
 Secretary. 
 
 (T. D. 1909.) 
 
 License Required for Collection of Income 
 Received From Foreign Countries. 
 
 Supplemental Regulations as to Making Ap¬ 
 plication, Filing Bond and Issuing License 
 to Collecting Agencies of Income From 
 Foreign Countries. 
 
 Washington, D. C., Nov. 28, 1913. 
 
 All persons, firms, or corporations under¬ 
 taking for accommodation or profit (this 
 includes handling either by way of pur¬ 
 chase or collection) the collection of cou¬ 
 pons, checks, bills of exchange, etc., 
 
 (a) for or in payment of interest 
 upon bonds issued in foreign 
 countries, and 
 
 (b) upon foreign mortgages or like 
 obligations, and 
 
 (c) for any dividends upon stock or 
 interest upon obligations of for¬ 
 eign corporations, associations, 
 or insurance companies engaged 
 in business in foreign countries, 
 
 23 
 
HARRIS TRUST &■ SAVINGS BANK 
 
 who are required by law to obtain a license 
 from the Commissioner of Internal Reve¬ 
 nue, shall make application to the Collector 
 of Internal Revenue, for the district in 
 which they do business, for such license in 
 the following form: 
 
 FORM OF APPLICATION FOR LICENSE FOR 
 THE COLLECTION OF INCOME FROM 
 FOREIGN COUNTRIES. 
 
 Form 1017 
 
 UNITED STATES INTERNAL REVENUE. 
 APPLICATION FOR LICENSE FOR COLLECTION 
 OF INCOME FROM FOREIGN COUNTRIES. 
 
 State of. 
 
 County of. 
 
 The undersigned, . 
 
 (Name.) 
 
 (Office.) 
 
 of. 
 
 (State name of person, firm or corporation.) 
 
 being duly sworn according to law, declares 
 
 that on and after the...". 
 
 day of ., 191. .., 
 
 he (we) intend. . to engage in the business 
 of collecting foreign income payments of 
 interest or dividends by means of coupons, 
 checks, or bills of exchange. The aggregate 
 amount of annual collections of such for¬ 
 eign income at the principal and branch 
 
 offices is estimated at $. 
 
 The location of the principal and branch 
 offices is as follows: 
 
 Principal Office . 
 
 Branch Offices.. 
 
 (If a firm, state names of members.) 
 
 Said person, firm or corporation is now 
 
 engaged in business as. 
 
 and desires to conduct the business of col¬ 
 lecting foreign income at the above address 
 or addresses, and hereby makes applica- 
 
 24 
 
HARRIS TRUST &- SAVINGS BANK 
 
 tion for the license required to be secured 
 by persons, firms or corporations engaging 
 in the business of collecting income from 
 foreign countries under the provisions of 
 paragraph E of Section II. of the Income 
 tax law of October 3, 1913, and I (we) 
 hereby promise and pledge myself (our¬ 
 selves) to comply strictly with the provi¬ 
 sions of said law and the rules and regula¬ 
 tions of the Treasury Department which 
 have been or may hereafter be issued in 
 respect to the collection and payment of 
 such foreign income. 
 
 Signed., 
 
 for. 
 
 (Name of firm or corporation.) 
 
 Sworn to before me this 
 .day of 
 
 . 191..., 
 
 The Collector of Internal Revenue, upon 
 receipt of such application, shall satisfy 
 himself that the person, firm or corporation 
 making application is considered to be of 
 good character and business standing and 
 may require that he or they shall be able to 
 show a financial rating in one or more of 
 the recognized mercantile agencies of the 
 United States, equal to at least one-tenth of 
 the estimated amount of annual collections 
 of foreign income as stated in the applica¬ 
 tion. 
 
 The Collector of Internal Revenue hav¬ 
 ing thus satisfied himself of the business 
 and financial reliability of the person, firm 
 or corporation making application for li¬ 
 cense, may issue the license without re¬ 
 quiring a bond for the faithful performance 
 of duty and compliance with the law and 
 regulations. 
 
 In cases where the person, firm or cor¬ 
 poration shall fail to satisfy the Collector 
 of Internal Revenue of his or their busi- 
 
 25 
 
HARRIS TRUST & SAVINGS BANK 
 
 ness or financial reliability, the Collector 
 may refuse to issue license or may issue a 
 license upon the applicant filing a surety 
 bond satisfactory to the Commissioner of 
 Internal Revenue for a penal sum equal 
 to two per cent of the estimated amount of 
 collections stated in the application, the 
 minimum penal sum, however, to be $1,000, 
 and the maximum not in excess of $100,- 
 000 . 
 
 The bond, when required, shall be exe¬ 
 cuted in duplicate, one of which shall be 
 retained in the office of the Collector of 
 Internal Revenue with whom the bond is 
 filed, and the other shall be forwarded by 
 the Collector to the Commissioner of In¬ 
 ternal Revenue at Washington, D. C. 
 
 The form of license to be issued shall be 
 as follows: 
 
 Form 1010 No. 
 
 TREASURY DEPARTMENT. 
 
 OFFICE OF THE COMMISSIONER OF INTERNAL 
 REVENUE. LICENSE FOR COLLECTION 
 OF FOREIGN INCOME. 
 
 doing business at 
 
 located and 
 
 and engaged in the business of. 
 
 ., having made application in ac¬ 
 cordance with the provisions of Section II. 
 of the Act of October 3, 1913, and the reg¬ 
 ulations made in pursuance thereof, is 
 hereby licensed to accept for collection cou¬ 
 pons, checks, and bills of exchange for or 
 in payment of interest upon bonds issued in 
 foreign countries and upon foreign mort¬ 
 gages or like obligations, and for the divi¬ 
 dends upon stock of foreign corporations, 
 foreign joint-stock companies or associa¬ 
 tions, or foreign insurance companies en¬ 
 gaged in business in foreign countries, 
 from.•.., 191..., until re¬ 
 
 voked. 
 
 26 
 
 i 
 
HARRIS TRUST 6- SAVINGS BANK 
 
 This license will not be valid until coun¬ 
 tersigned by the Collector of Internal Rev¬ 
 enue for the district in which issued. 
 Countersigned: 
 
 (Collector.) 
 
 .Dist.,. ... 
 
 Commissioner of Internal 
 Revenue. 
 
 This license, made up in the form of 
 bound books containing 50 each, with ap¬ 
 propriate stubs, will be furnished in blank 
 to the Collectors of Internal Revenue, with 
 the facsimile signature of the Commission¬ 
 er of Internal Revenue thereon, and shall 
 not be valid until countersigned by the Col¬ 
 lector of Internal Revenue by whom issued. 
 
 This license may be issued without cost 
 to the persons to whom issued and shall 
 continue in full force until revoked. Fail¬ 
 ure to give or renew the bond in cases 
 where a bond is required will automatically 
 revoke the license. 
 
 In cases where licenses are issued with¬ 
 out bond, the Collector shall, at stated year¬ 
 ly periods, inquire into and satisfy himself 
 of the financial responsibility of all licen¬ 
 sees. 
 
 When any person, firm or corporation 
 has branch offices and desires to collect said 
 foreign interest or dividend income through 
 said branch offices, the application for li¬ 
 cense or licenses shall be made (and bond 
 furnished, when a bond is required) by the 
 person, firm or corporation through its 
 principal office for its branch office or of¬ 
 fices. 
 
 The bond in such cases shall be based on 
 the total amount of such foreign business 
 transacted by both the home office and its 
 branch office or offices. 
 
 This application for licenses shall be 
 ^ made (and bond furnished when bond is 
 required) to the Collector of Internal Rev¬ 
 enue for the district in which the principal 
 or home office is located. The names and 
 
 27 
 
HARRIS TRUST 6- SAVINGS BANK 
 
 addresses of the branch offices shall be fur¬ 
 nished to the Collector in the application of 
 the said principal and if the requirements of 
 the Bureau of Internal Revenue are com¬ 
 plied with to the satisfaction of the said 
 collector, then said collector shall certify 
 this fact to the Collector of Internal Reve¬ 
 nue for the district in which the branch of¬ 
 fice for which the license is desired is lo¬ 
 cated, and the collector to whom this cer¬ 
 tification is made shall thereupon issue a li¬ 
 cense as provided herein to such branch of¬ 
 fice. 
 
 No bond will be required in any case for 
 the month of December, 1913, but the re¬ 
 quired license may be issued by Collectors 
 of Internal Revenue immediately upon re¬ 
 ceipt of the blank licenses in all cases where 
 the applications for licenses which may 
 have been filed shall have been duly ap¬ 
 proved. 
 
 The bond, if required, must be filed for 
 the calendar year 1914 and for each calen¬ 
 dar year thereafter. 
 
 All bonds must be renewed or new bonds 
 furnished on or before January 1 of each 
 successive year. 
 
 The applications for these licenses and 
 the stubs of the licenses issued shall be re¬ 
 tained and preserved in the offices of the 
 Collectors of Internal Revenue. 
 
 W. H. Osborn, 
 Commissioner. 
 
 Approved November 28, 1913. 
 
 W. G. McAdoo, 
 
 Secretary of the Treasury. 
 
 28