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This covers public bonds in general. — 8 — Persons Exempt. Exempt from the tax are the salaries of the President of the United States, all Federal judges, and all state, county and municipal oflScers and employees. Partners Are Individuals. In dealing with corporate taxpayers the law makes special exception of partnerships and holds that the persons in a partner- ship shall be liable for the tax only in their individual capacity. Must Get License. All persons, firms or corporations undertaking ...the collection of foreign incomes must obtain a license by application to the Collector of Internal Revenue. Undivided Profits. Undivided and undistributed profits will be considered in ascertaining the net income of persons. Accumulation of profits for the purpose of evading the law will not avail because the fact that profits are allowed to accumulate beyond the reasonable needs of a business will be regarded as prima facie evidence of a fraudulent purpose. No Double Taxation. Double Taxation of corporation dividends is prevented by assessing the normal income tax on such dividends against the corporations and not against the individuals receiving them.
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