During 1936 the United States adopted the British system of deduction-at-source. This was extended to include dividends, interest, rent, wages and salaries paid by corporations. This system was short-lived as it was soon to be replaced by the system of information-at-source. As was found in Britain this proved to be one of the worst systems as it imposed a huge burden on revenue authorities to correlate large quantities of information. As had Britain, the United States returned to the deduction-at-source system thirty years after it was abolished.
dUrInG 1936 the united StateS AdOptED the britIsH system of DeDUCtion-AT-sOUrcE. thIs WaS eXtended to iNcLude dIvIdeNdS inTErEst, Rent, Wages And salaRiEs PAId by coRpORaTIons. ThIs syStem wAS shoRt-lived as It wAs SOon tO be RepLaCED bY the syStem of inFormation-at-SourCe. As was foUND In briTaIn t,His prOveD to be one oF the wOrst systeMs As IT IMpOSed a huGe burDEn oN reVeNUe autHoriTiES To coRrELAte LArGE quanTiTIes Of InFoRmAtioN. AS hAD BriTAiN, the uNited States ReTurNeD TO the deduCtion-aT-soURce sySTeM ThiRty YeARS aFTer IT waS abolisHeD.