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1 pay the same, unless such failure was fraudulent and for 2 the purpose of evading payment." 3 Sec. 1210. That section twenty-six of such Act of 4 September eighth, nineteen hundred and sixteen, as amended 5 by the Act entitled An Act to provide increased revenue to 6 defray the expenses of the increased appropriations for the 7 Army and Navy and the extensions of fortifications, and for 8 other purposes," approved March third, nineteen hundred 9 and seventeen, is hereby amended to read as follows: 10 SEC. 26. Every corporation, joint-stock company or 11 association, or insurance company subject to the tax herein 12 imposed, when required by the Commissioner of Internal 13 Revenue, shall render a correct return, duly verified under 14 oath, of its payments of dividends, whether made in cash or 15 its equivalent or in stock, including the names and addresses 16 of stockholders and the number of shares owned by each, and 17 the tax years and the applicable amounts in which such divi18 dends were earned, in such form and manner as may be 19 prescribed by the Commissioner of Internal Revenue, with 20 the approval of the Secretary of the Treasury.21 Sec. 1211. That Title I of such Act of September eighth, 22 nineteen hundred and sixteen, is hereby amended by adding 23 to Part III five new sections, as follows: 24 Sec. 27. That every person, corporation, partnership, 25 or association, doing business as a broker on any exchange or 1 board of trade or other similar place of business shall, when 2 required by the Commissioner of Internal Revenue, render a

3 correct return duly verified under oath, under such rules and

4 regulations as the Commissioner of Internal Revenue, with 5 the approval of the Secretary of the Treasury, may prescribe, 6 showing the names of customers for whom such person, 7 corporation, partnership, or association has transacted any 8 business, with such details as to the profits, losses, or other 9 information which the commissioner may require, as to each 10 of such customers, as will enable the Commissioner of Internal 11 Revenue to determine whether all income tax due on profits 12 or gains of such customers has been paid. 13

Sec. 28. That all persons, corporations, partnerships, 14 associations, and insurance companies, in whatever capacity 15 acting, including lessees or mortgagors of real or personal 16 property, trustees acting in any trust capacity, executors, ad17 ministrators, receivers, conservators, and employers, making 18 payment to another person, corporation, partnership, associa19 tion, or insurance company, of interest, rent, salaries, wages, 20 premiums, annuities, compensation, remuneration, emolu

ments, or other fixed or determinable gains, profits, and income 22 (other than payments described in sections twenty-six and 23 twenty-seven), of $800 or more in any taxable year, or, in the



case of such payments made by the United States, the officers or employees of the United States having information as to



1 such payments and required to make returns in regard thereto 2 by the regulations hereinafter provided for, are hereby author3 ized and required to render a true and accurate return to the 4 Commissioner of Internal Revenue, under such rules and reg5 ulations and in such form and manner as may be pre6 scribed by him, with the approval of the Secretary of the Treas7 ury, setting forth the amount of such gains, profits, and 8 income, and the name and address of the recipient of such 9 payment: Provided, That such returns shall be required, 10 regardless of amounts, in the case of payments of interest

upon bonds and mortgages or deeds of trust or other similar 12 obligations of corporations, joint-stock companies, associa13 tions, and insurance companies, and in the case of collections 14 of items (not payable in the United States) of interest upon 15 the bonds of foreign countries and interest from the bonds and 16 dividends from the stock of foreign corporations by persons, 17 corporations, partnerships, or associations, undertaking as a 18 matter of business or for profit the collection of foreign pay19 ments of such interest or dividends by means of coupons, 20 checks, or bills of exchange. 21 When necessary to make effective the provisions of 22 this section the name and address of the recipient of in23 come shall be furnished upon demand of the person, corpora24 tion, partnership, association, or insurance company paying 25 the income.

1 The provisions of this section shall apply to the 2 calendar year nineteen hundred and seventeen and each

3 calendar year thereafter.


"Sec. 29. That in assessing income tax the net income

5 embraced in the return shall also be credited with the amount


6 of any war profits tax imposed by Act of Congress and 7 assessed for the same calendar or fiscal year upon the taxpayer.

Sec. 30. That nothing in section II of the Act ap9 proved October third, nineteen hundred and thirteen, entitled

'An Act to reduce tariff duties and to provide revenue for the 11 Government, and for other purposes,' or in this title, shall be 12 construed, as taxing the income of foreign governments re13 ceived from investments in the United States in stocks, bonds,

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15 Sec. 31. That all contracts entered into after the en16 actment of this amendment by which any person, corporation, 17 partnership, association, or insurance company agrees to pay 18 any portion of the tax imposed by this title upon any other 19 person, corporation, association, or insurance company, or to 20 reimburse such person, corporation, association, or insurance 21 company for any portion of such tax, shall be void, and any 22 person, corporation, partnership, association, or insurance 23 company entering into such a contract shall be subject to a 24 fine of not more than $1,000.


1 Sec. 1212. That any amount heretofore withheld by any 2 withholding agent as required by Title 1 of such Act of Septem3 ber eighth, nineteen hundred and sixteen, on account of the 4 tax imposed upon the income of any individual, a citizen or 5 resident of the United States, for the calendar year nineteen

hundred and seventeen, shall be released and paid over to such 7 individual, and the entire tac upon the income of such indi8 8 vidual for such year shall be assessed and collected in the 9 manner prescribed by such Act as amended by this Act.




11 SEC. 1300. That if any clause, sentence, paragraph, 12 or part of this Act shall for any reason be adjudged by any 13 court of competent jurisdiction to be invalid, such judgment 14 shall not affect, impair, or invalidate the remainder of said 15 Act, but shall be confined in its operation to the clause, sen


tence, paragraph, or part thereof directly involved in the


controversy in which such judgment shall have been ren

18 dered.


SEC. 1301. That Title I of the Act entitled, "An

20 Act to provide increased revenue to defray the expenses of 21 the increased appropriations for the Army and Navy and the 22 extension of fortifications, and for other purposes," approved 23 March third, nineteen hundred and seventeen, be, and the

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