811.5123/2318: Telegram

The Secretary of State to the Ambassador in the United Kingdom ( Bingham )

68. Your telegram 76, February 21, noon [4 p.m.]. Treasury Department states that under the Revenue Acts of 1932 and 1934 and [Page 486] Regulations promulgated thereunder British subjects who are nonresident aliens as to the United States and who come here for business purposes are liable for Federal income tax on their income received as compensation for services performed in this country. It is added that while the conclusions set forth appear to be inescapable under existing law consideration is being given to the advisability of recommending to Congress a change which would alleviate the hardships involved.

A copy of Treasury letter7 is being forwarded by mail.

  1. Dated March 23, 1935, not printed.