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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 mort. gage 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 4%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.


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:

Bonds of domestic or resident corporations .

Classification of owner.

Containing tax-free


Not containing tax-free clause.

Form 1001, line 2.

Citizen or resident of the United States. (Individual or fidu- Form 1000, line 1.

ciary.) Personal eremption not claimed. Citizen or resident of the United States. (Individual or fidu- Form 1001, line 1.

ciary.) Personal exemption claimed or interest not subject to

tar at the source. Domestic or resident partnership...

Form 1000, line 2. Nonresident alien. (Individual or fiduciary)..

Form 1000, line 3. Partnership composed in whole or in part of nonresident aliens Form 1000, line 4.

and having no office or place of business in the United States.. Foreign corporation not having an office or place of business in Form 1000, line 5.

the United States and not engaged in trade or business therein. Unknown owner...

Form 1000, line 6.

Form 1001, line 3.
Form 1000, line 3.
Form 1000, line 4.

Form 1000, line 6.

Form 1000, line 6.

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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 inay be obtained from your local Collector of Internal Revenue.



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. Exempt Corporations. 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 Sec

tions 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 $i 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:

$ .05

Bonds and Debentures or Certificates of Indebtedness issued

by any person, and all corporate securities issued with
interest coupons or in registered form-on each $100

of face value or fraction thereof.....
Renewals are taxed as new issues.
When a bond conditioned for the repayment or payment

of money is given in a penal sum greater than the debt
secured, the tax is on the amount secured.

Capital Stock, Original Issue. (Stamps must be attached to

the stock book, not to certificates.) On each $100 par value, or fraction thereof. Non-par value-actual value $100 a share.

actual value less than $100 a share, on

each $20 of actual value or fraction. actual value more than $100 a share, on

each $100 of actual value or fraction

.05 .05




Capital Stock and Rights, Sales or Transfers. (Stamps must

be affixed-(a) To transfer book where transfer is
shown only by book; (b) to certificate where transfer
is by certificate; (c) to bill of sale where certificate is

delivered in blank.)
On par value stock, each $100 face value or fraction...
On non-par value stock, each share..

.02 .02

Conveyances of Real Estate Not to Secure Debt. On consid

eration, less any lien or encumbrance at the time of

sale, over $100 and not over $500. ... Each additional $500 or fraction thereof..

.50 .50

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.

Not over $100 in value..
Over $100 and not over $500 in value.
Over $500 in value...

.25 .50 1.00

Entry for Withdrawal of Goods or Merchandise from Custom

Bonded Warehouses .


Merchandise, Sales of, on Exchange for Future Delivery. On each $100 in value of the merchandise....

.$ .02 Each additional $100 or fraction thereof..


Passage Tickets sold or issued in the United States for pas

sage by vessel to places not in the United States,

Canada or Mexico. Cost not to exceed $30.

1.00 Over $30 and not over $60.

3.00 Over $60....

Passage tickets costing less than $10 are exempt. Playing Cards. On each pack containing not more than 54 cards.





Policies of Insurance (not including reinsurance policies), is

sued by a foreign concern, when not duly signed or
countersigned in the United States; on each dollar or

fraction of premium charged....
Power of Attorney (with certain exceptions, see Schedule

AI1, page 129). .
Promissory Notes and each renewal thereof, per $100 face

value or fraction thereof......
Bank notes issued for circulation and promissory notes

secured by Liberty Bonds or other obligations of the
United States issued after April 24, 1917, if the par
value of the bonds or obligations is not less than the

amount of the note secured, are exempt.
Proxies for election of officers or for business meetings of cor-

porations (except religious, educational, charitable,
fraternal or literary societies, or public cemeteries)..




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.

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