Treasury Decision 2313
TREASURY DECISION 2313
To collectors of internal revenue:
Under the decision of the Supreme Court of the United States in the case of Brushaber v. Union Pacific Railway Co., decided January 21, 1916, it is hereby held that income accruing to nonresident aliens in the form of interest from the bonds and dividends on the stock of domestic corporations is subject to the income tax imposed by the act of October 3, 1913.
Nonresident aliens are not entitled to the specific exemption designated in paragraph C of the income-tax law, but are liable for the normal and additional tax upon the entire net income "from all property owned, and of every business, trade, or profession carried on in the United States," computed upon the basis prescribed in the law.
The responsible heads, agents, or representatives of nonresident aliens , who are in charge of the property owned or business carried on within the United States, shall make a full and complete return of the income therefrom on Form 1040, revised, and shall pay any and all tax, normal and additional, assessed upon the income received by them in behalf of their nonresident alien principals.
The person, firm, company, copartnership, corporation, joint-stock company, or association, and insurance
company in the United States, citizen or resident alien, in whatever capacity acting, having the control,
receipt, disposal, or payment of
fixed or determinable annual or periodic gains, profits, and income of whatever kind, to a nonresident
alien , under any contract or otherwise, which payment shall represent income of a nonresidnet alien from
the exercise of any trade or
profession within the United States, shall deduct and withhold from such annual or periodic gains, profits,
and income, regardless of amount, and pay to the office of the United States Government authorized to receive
the same such sum as will be
sufficient to pay the normal tax of 1 per cent imposed by law, and shall make an annual return on Form 1042.
(EMPHASIS ADDED)
The Actual Document
This decision clearly states "NON-RESIDENT ALIENS" several times !
ARE YOU SUBJECT ?
Paragraph 2 says NON-RESIDENT ALIENS ARE LIABLE.
It also says nonresident aliens cannot claim the exception in Paragraph C (see
Sec. 6654. Failure to Pay Estimated Tax, Exceptions).
Who can claim that exception ? (see
C.F.R. 1441-5 Claiming to be a Person Not Subject to Withholding)
Paragraph 3 says FORM 1040 is to be used to report the income of NON-RESIDENT ALIENS, NOT CITIZENS!
While it is true that
the citizen does fill out and file Form 1040, HE IS NOT SUPPOSED TO REPORT HIS OWN INCOME ON FORM 1040,
JUST THE NONRESIDENT
ALIEN'S. And, of course, if he does NOT "represent" any nonresident aliens he has no requirement at
all to file a Form 1040.
This of course, agrees completely with the tables in the law showing what form is required from citizens
regarding their own income
(see 26 CFR 602.101 - The Form Required)!
IT DOESN'T !
NEED PROOF - READ ON
.....tick.....tick.....tick....tick....
ARE YOU A NON-RESIDENT ALIEN ?
Paragraph 1 says NON-RESIDENT ALIENS ARE SUBJECT.
I BET YOU THOUGHT THIS TAX APPLIED TO
YOU !
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Last Update: 02/28/07
Web Author: The Disciples of Truth
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