verified by oath of fault in rendering return. faithful account of the amount of taxes as aforesaid; and there Return to be shall be annexed thereto a declaration of the president, cashier, president, cashier, or treasurer of the bank, trust company, savings institution, or in- or treasurer. surance company, under oath or affirmation, in form and manner as may be prescribed by the Commissioner of Internal Revenue, that the same contains a true and faithful account of the taxes as aforesaid. And for any default in the making or rendering of such Penalty for delist or return, with such declaration annexed, the bank, trust company, savings institution, or insurance company making such default shall forfeit as a penalty the sum of one thousand dollars; and in case of any default in making or rendering said list or re- In case of default, turn, or of any default in the payment of the tax as required, or collection to be in any part thereof, the assessment and collection of the tax and accordance with penalty shall be in accordance with the general provisions of general provisions. law in other cases of neglect and refusal: Provided, That the tax insurance compaupon the dividends of life insurance companies shall not be deemed payable. due until such dividends are payable; nor shall the portion of premiums returned by mutual life insurance companies to their policy holders, nor the annual or semi-annual interest allowed or paid to the depositors in savings banks or savings institutions, be considered as dividends. assessment and Dividends of life nies not due until Premiums returned by mutual life insurance companies not divi dends. Bank neglecting to make dividend or addition to sur once in six months 1st of July. Duty of 5 per cent. to be paid to 163. That any bank legally authorized to issue notes as circu- 30 June, 1864, §121 lation which shall neglect or omit to make dividends or additions to its surplus or contingent fund as often as once in six months, shall make a list or return in duplicate, under oath or affirmation plus as often as of the president or cashier, to the assessor or assistant assessor of to make return on the district in which it is located, on the first day of January and 1st of January and July in each year, or within thirty days thereafter, of the amount of profits which have accrued or been earned and received by said bank during the six months next preceding said first days of January and July; and shall present one of said lists or returns and pay to the collector of the district a duty of five per centum on the collector. such profits, and in case of default to make such list or return and payment within the thirty days, as aforesaid, shall be subject to the provisions of the foregoing section of this act: Provided, That when any dividend is made which includes any part of the surplus or contingent fund of any bank, trust company, savings institution, insurance or railroad company, which has been assessed and the duty paid thereon, the amount of duty so paid on that portion of the surplus or contingent fund may be deducted from the duty on such dividend. Duty paid on surplus or contingent ed from duty on fund to be deduct future dividend. 30 June, 1864, §122 10 13 cent. on dividends on turnpike, and slack-water 164. That any railroad, canal, turnpike, canal navigation, or March, 1866, § 2. slack-water company, indebted for any money for which bonds or July, 1866, § 9. other evidence of indebtedness have been issued, payable in one or Duty of 5 per more years after date, upon which interest is stipulated to be paid, and interest or coupons representing the interest, or any such company that bonds of railroad, may have declared any dividend in scrip or money due or paya- canal navigation, ble to its stockholders, including non-residents, whether citizens companies. or aliens, as part of the earnings, profits, income, or gains of suc company, and all profits of such company carried to the account of any fund, or used for construction, shall be subject to and pay a tax of five per centum on the amount of all such interest, or coupons, dividends, or profits, whenever and wherever the same shall be payable, and to whatsoever party or person the same may be payable, including non-residents, whether citizens or aliens; and said companies are hereby authorized to deduct and withhold from to Companies with'ld duty from payments. all from that amount of indebtedness. made to assessor month following months. six Return to be all payments on account of any interest, or coupons, and dividends, due and payable as aforesaid, the tax of five per centum ; Payment to dis- and the payment of the amount of said tax so deducted from the charge companies interest, or coupons, or dividends, and certified by the president or treasurer of said company, shall discharge said company from that amount of the dividend, or interest, or coupon on the bonds or other evidences of their indebtedness so held by any person or party whatever, except where said companies may have contractReturn to be ed otherwise. And a list or return shall be made and rendered on or before the to the assessor or assistant assessor on or before the tenth day tenth day of the of the month following that in which said interest, coupons, or that in which divi- dividends become due and payable, and as often as every six dends were payar months; and said list or return shall contain a true and faithful account of the amount of tax, and there shall be annexed thereto verified by oath of a declaration of the president or treasurer of the company, under president or treas- oath or affirmation in form and manner as may be prescribed by the Commissioner of Internal Revenue, that the same contains a Penalty for de- true and faithful account of said tax. And for any default in mafault in making re- king or rendering such list or return, with the declaration annexed, or of the payment of the tax as aforesaid, the company making such default shall forfeit as a penalty the sum of one thousand dollars; and in case of any default in making or rendering said list or return, or of the payment of the tax or any part thereof, as aforesaid, the assessment and collection of the tax and penalty shall be made according to the provisions of law in other cases of neglect or refusal : Provided, That whenever any of the comIn case of default panies mentioned in this section shall be unable to pay the interest in making return, on their indebtedness, and shall in fact fail to pay such interest, or payment of the that in such cases the tax levied by this section shall not be paid and collection to to the United States until said company resume the payment of ingeneral provisions. terest on their indebtedness. urer turn. duty, assessment, be according to 30 June, 1864, § 123 13 July, 1866, § 9. Duty of 5 per in excess of $600. cent. on Disbursing offi cers to withhold amount and trans mit to Commissioner. 165. That there shall be levied, collected, and paid on all salaries of officers, or payments for services to persons in the civil, military, naval, or other employment or service of the United States, including senators and representatives and delegates in Congress, when exceeding the rate of six hundred dollars per annum, a tax of five per centum on the excess above the said six hundred dollars, and a tax of ten per centum on the excess over five thousand dollars; and it shall be the duty of all paymasters and all disbursing officers, under the government of the United States, or persons in the employ thereof, when making any payment to any officers or persons as aforesaid, or upon settling and adjusting the accounts of such officers or persons, to deduct and withhold the aforesaid tax, and they shall, at the same time, make a certificate stating the name of the officer or person from whom such deduction was made, and the amount thereof, which shall be transmitted to the office of the Commissioner of Internal Revenue, and entered as part of the internal tax; and the pay-roll, receipts, or account of officers or persons paying such tax, as aforesaid, shall Auditors of the be made to exhibit the fact of such payment. And it shall be quire evidence that the duty of the several Auditors of the Treasury Department, duties have been when auditing the accounts of any paymaster or disbursing officer, or any officer withholding his salary from moneys received by him, or when settling or adjusting the accounts of any such officer, to require evidence that the taxes mentioned in this section have been deducted and paid over to the Commissioner of Internal Rev Treasury to re paid. regarded as sala enue, or other officer authorized to receive the same: Provided, Payments of That payments of prize money shall be regarded as income from prize money to be salaries, and the tax thereon shall be adjusted and collected in ries. Not to apply to like manner: Provided further, That this section shall not apply payments to laborto payments made to mechanics or laborers employed upon public ers, &c., employed works. upon public works in certain cases. 166. That consuls of foreign countries in the United States, 30 June, 1864, § 178 who are not citizens thereof, shall be, and hereby are, exempt Consuls exempt from any income tax imposed by this act which may be derived from income tax from their official emoluments, or from property in such countries : Provided, That the governments which such consuls may represent shall extend similar exemption to consuls of the United States. VII. LEGACIES AND DISTRIBUTIVE SHARES OF PERSONAL PROPERTY. executors, and distributive sh'res, amount exceeds 167. That any person or persons having in charge or trust, as 30 June,1864, § 124. administrators, executors, or trustees, any legacies or distributive 13 July, 1866, § 9. shares arising from personal property, where the whole amount of Administrators, such personal property, as aforesaid, shall exceed the sum of one trustees to pay tax thousand dollars in actual value, passing, after the passage of this on legacies, and act, from any person possessed of such property, either by will or where the whole by the intestate laws of any State or Territory, or any personal $1,000. property or interest therein, transferred by deed, grant, bargain, sale, or gift, made or intended to take effect in possession or enjoyment after the death of the grantor or bargainor, to any person or persons, or to any body or bodies politic or corporate, in trust or otherwise, shall be, and hereby are, made subject to a duty or tax, to be paid to the United States, as follows, that is to say: Lineal issue or lineal ancestor, per cent. First. Where the person or persons entitled to any beneficial interest in such property shall be the lineal issue or lineal ancestor, brother or sister, 1 brother or sister, to the person who died possessed of such property, as aforesaid, at the rate of one dollar for each and every hundred dollars of the clear value of such interest in such property. Descendant of brother or sister, Second. Where the person or persons entitled to any beneficial interest in such property shall be a descendant of a brother or sister 2 per cent. of the person who died possessed, as aforesaid, at the rate of two dollars for each and every hundred dollars of the clear value of such interest. Brother or sis Third. Where the person or persons entitled to any beneficial interest in such property shall be a brother or sister of the father ter of father or mother, or or mother, or a descendant of a brother or sister of the father or scendant of same, mother, of the person who died posssesed, as aforesaid, at the rate of four dollars for each and every hundred dollars of the clear value of such interest. 4 per cent. Brother or sister of grandfather or Fourth. Where the person or persons entitled to any beneficial interest in such property shall be a brother or sister of the grand- grandmother, father or grandmother, or a descendant of the brother or sister of descendant the grandfather or grandmother, of the person who died possessed as aforesaid, at the rate of five dollars for each and every hundred dollars of the clear value of such interest. same, 5 per cent. or of Other degree of consanguinity or stranger in blood, Fifth. Where the person or persons entitled to any beneficial interest in such property shall be in any other degree of collateral consanguinity than is hereinbefore stated, or shall be a stranger in 6 per cent. blood to the person who died possessed, as aforesaid, or shall be a exempt. body politic or corporate, at the rate of six dollars for each and every hundred dollars of the clear value of such interest: Provided, Husband or wife That all legacies or property passing by will, or by the laws of any State or Territory, to husband or wife of the person who died possessed, as aforesaid, shall be exempt from tax or duty: ProJunior child ex- vided further, That any legacy or share of personal property passing as aforesaid to a minor child of the person who died possessed as aforesaid shall be exempt from taxation under this section, unless such legacy or share shall exceed the sum of one thousand dollars, in which case the excess only above that sum shall be liable to such taxation. empt on $1,000. 30 June, 1864. §125. 3 March, 1865, §1. 13 July, 1866, §9. Tax, when pay able. To be a lien upon the property for 20 years. to appear within trust. fore the payment of any legacy. made to the assessor or assistant. 168. That the tax or duty aforesaid shall be due and payable Whenever the party interested in such legacy or distributive share or property or interest aforesaid shall become entitled to the possession or enjoyment thereof, or to the beneficial interest in the profits accruing therefrom, and the same shall be a lien and charge upon the property of every person who may die as aforesaid, for 13 July, 1866, § 9. twenty years, or until the same shall, within that period, be fully Administrator, paid to and discharged by the United States. And every admin&c., to give notice istrator, executor, or trustee, having in charge or trust any legacy thirty days after or distributive share, as aforesaid, shall give notice thereof in writaking charge of ting to the assessor or assistant assessor of the district where the deceased grantor or bargainor last resided within thirty days after Executor, &c., he shall have taken charge of such trust; and every executor, to pay the tax be administrator, or trustee, before payment and distribution to the legatees or to any parties entitled to beneficial interest therein, shall pay to the collector or deputy collector of the district of which the deceased person was a resident the amount of the duty or tax assessed upon such legacy or distributive share, and shall also Return to be make and render to the assessor or assistant assessor of the said district a schedule, list, or statement, in duplicate, of the amount of such legacy or distributive share, together with the amount of duty which has accrued or shall accrue thereon, verified by his Return to be un- oath or affirmation, to be administered and certified thereon by some magistrate or officer having lawful power to administer such oaths, in such form and manner as shall be prescribed by the Commissioner of Internal Revenue, which schedule, list, or statement shall contain the names of each and every person entitled to any beneficial interest therein, together with the clear value of such interest, the duplicate of which schedule, list, or statement shall be by him immediately delivered, and the tax thereon paid to such collector; and upon such payment and delivery of such schedule, list, or statement, said collector or deputy collector shall grant to such person paying such duty or tax a receipt or receipts for the same in duplicate, which shall be prepared as hereinafter provided. Receipt of the Such receipt or receipts, duly signed and delivered by such colcollector to be suf- lector or deputy collector, shall be sufficient evidence to entitle entitle executor to such executor, administrator, or trustee to be credited and allowed credit in the settle- such payment by every tribunal which, by the laws of any State or Territory, is, or may be, empowered to decide upon and settle Proceedings in the accounts of executors and administrators. And in case such executor, administrator, or trustee shall refuse or neglect to pay the aforesaid duty or tax to the collector or deputy collector, as aforesaid, within the time hereinbefore provided, or shall neglect or refuse to deliver to said collector or deputy collector the duplicate of the schedule, list, or statement of such legacies, property, der oath. ficient evidence to ment of his ac count. case of neglect. Assistant asses sor to make list and 13 July, 1866, § 9. assess the duty. Penalty in case of wilful neglect. Collectors to pro commence ceedings in United States court. Property to be sold. proceeds. Deed of the proper officer to or personal estate, under oath, as aforesaid, or shall neglect or refuse to deliver the schedule, list, or statement of such legacies, property, or personal estate, under oath, as aforesaid, or shall deliver to said assessor or assistant assessor a false schedule or statement of such legacies, property, or personal estate, or give the names and relationship of the persons entitled to beneficial interests therein untruly, or shall not truly and correctly set forth and state therein the clear value of such beneficial interest, or where no administration upon such property or personal estate shall have been granted or allowed under existing laws, the assistant assessor shall make out such lists and valuation as in other cases of neglect or refusal, and shall assess the duties thereon. And in case of wilful neglect, refusal, or false statement by such executor, administrator, or trustee, as aforesaid, he shall be liable to a penalty of not exceeding one thousand dollars, to be recovered with costs of suit; and the collector shall commence appropriate proceedings before any court of the United States, in the name of the United States, against such person or persons as may have the actual or constructive custody or possession of such property or personal estate, or any part thereof, and shall subject such property or personal estate, or any portion of the same, to be sold upon the judgment or decree of such court, and from the proceeds of Disposition of such sale the amount of such tax or duty, together with all costs and expenses of every description to be allowed by such court, shall be first paid, and the balance, if any, deposited according to the order of such court, to be paid under its direction to such person or persons as shall establish title to the same. The deed or deeds, or any proper conveyance of such property or personal estate, or vest title in the any portion thereof, so sold under such judgment or decree, exe- purchaser. cuted by the officer lawfully charged with carrying the same into effect, shall vest in the purchaser thereof all the title of the delinquent to the property or personal estate sold under and by virtue of such judgment or decree, and shall release every other portion of such property or personal estate from the lien or charge thereon created by this act. And every person or persons who shall have in his possession, charge, or custody any record, file, or paper con- records, files, &c. taining or supposed to contain any information concerning such property or personal estate, as aforesaid, passing from any person who may die, as aforesaid, shall exhibit the same at the request of the assessor or assistant assessor of the district, and to any law officer of the United States, in the performance of his duty under this act, his deputy or agent, who may desire to examine the same. And if any such person, having in his possession, charge, or custody, any such records, files, or papers, shall refuse or neglect to exhibit the same on request, as aforesaid, he shall forfeit and pay the sum of five hundred dollars: Provided, deed to be prima In all legal controversies where such deed or title shall be the sub- facie evidence of ject of judicial investigation the recital in said deed shall be prima its truth. facie evidence of its truth, and that the requirements of the law had been complied with by the officers of the government. Any tax paid under the provisions of sections one hundred and twenty- 13 July, 1866, § 9. four and one hundred and twenty-five shall be deducted from the this and the foreparticular legacy or distributive share on account of which the going section to be same is charged. 7 Penalty for refusing to exhibit Recital in such Tax paid under deducted from the legacy, &c. |