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FEDERAL, RESERVE BANK OF DALLAS
F I S C A L A G E N T O F T H E U N IT E D S T A T E S

Dallas, Texas, December 29, 1941

OWNERSHIP CERTIFICATE REQUIREMENTS RELATING TO INTEREST PAYMENTS ON
OBLIGATIONS OF THE UNITED STATES OR ANY AGENCY OR ANY
INSTRUMENTALITY THEREOF

To All Banking Institutions in the
Eleventh Federal Reserve District:
Income Tax Regulations 103, issued by the Bureau of Internal Revenue, as amended effective January
1, 1942, provide that ownership certificates shall be filed (by citizens and resident individuals and fiduci­
aries, resident partnerships, nonresident partnerships all of the members of which are citizens or residents,
nonresident aliens and nonresident partnerships composed in whole or in part of nonresident aliens, and
nonresident foreign corporations, or where the owner is unknown) in the case of interest paid on and after
January 1, 1942, on obligations of the United States or any agency or instrumentality thereof, regardless
of the date of issuance of such obligations. It will be observed that ownership certificates will be required
for interest payments on all issues, both taxable and nontaxable, except in the cases of interest payments
where the owner is a domestic or resident corporation, a resident-foreign corporation, or a foreign gov­
ernment.
This bank, as fiscal agent of the United States, will be required to file the ownership certificates with
the Collectors of Internal Revenue; therefore, when surrendering coupons detached from Government
obligations or any agency or instrumentality thereof on and after January 1, 1942, it will be appreciated
if banks will segregate the coupons and list them on separate coupon-schedule forms according to the
following classes:
(a) Where the owner of the security is a domestic or resident corporation, including banks, a resi­
dent-foreign corporation, or a foreign government.
(b) Where owners are citizens, resident individuals, fiduciaries, resident partnerships or nonresident
partnerships all of the members of which are citizens or residents. (Such owners are required
to file ownership certificates on Form 1000.)
(c) Where the owner is a nonresident alien or nonresident-foreign corporation and tax at the source
must be withheld. (Such owners are required to file ownership certificates on Form 1001.)
In the event the coupons fall in group (a) the schedule should bear an endorsement to the effect that
they are owned by a domestic or resident corporation, a resident-foreign corporation, or a foreign gov­
ernment.
Ownership certificate forms for Government-interest coupons should be obtained from an office of the
Collector of Internal Revenue.
A SEPARATE OWNERSHIP CERTIFICATE should be furnished for coupons detached from each
issue of bonds. The certificate forms must be completely executed and sorted by issues in the same order
as the coupons are listed on the coupon schedule. The certificates should not be attached to the coupons
but should be banded together separately, accompanied by an adding-machine tape giving the total amount
involved, which should balance with the amount of coupons listed on the schedule.
Member banks will receive immediate credit, as heretofore, for matured coupons under classifications
(a) and (b). Credit for coupons supported by Certificate Form 1001, as indicated under classification (c),
will be given after deduction is made for the tax to be withheld at the source, as required by the Income
Tax Regulations.
If additional information is desired regarding the applicability or taxable-income status of any par­
ticular case, it is requested that the matter be referred directly to an office of the Collector of Internal
Revenue.
Yours very truly,
R. R. GILBERT
President

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)


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