DATE ON WHICH DISTRAINT IS BEGUN SEC. 1130. In determining the running of any period of limitation in respect of distraint, the distraint shall be held to have been begun (a) in the case of personal property, on the date on which the levy upon such property is made, or (b) in the case of real property, on the date on which notice of the time and place of sale is given to the person whose estate it is proposed to sell. TITLE XII.-GENERAL PROVISIONS REPEALS SEC. 1200. (a) The following parts of the Revenue Act of 1924 are repealed, to take effect (except as otherwise provided in this Act) upon the enactment of this Act, subject to the limitations provided in subdivision (b): Title II (called "Income Tax") as of January 1, 1925, except section 257 and sections 271 to 282, inclusive; Section 257 and sections 271 and 282, inclusive (being certain administrative provisions of the income tax); Part I of Title III (called "Estate Tax"); Part II of Title III (called "Gift Tax") as of January 1, 1926; Title IV (called "Tax on Cigars, Tobacco, and Manufactures Thereof") except section 400; Section 400 (being the tax on cigars and cigarettes) effective on the expiration of 30 days after the enactment of this Act; Title V (called "Tax on Admissions and Dues"), effective on the expiration of 30 days after the enactment of this Act: Title VI (called "Excise Taxes") except subdivision (2) of section 600; Subdivision (2) of section 600 (being the tax on certain automobiles) effective on the expiration of 30 days after the enactment of this Act; Title VII (called "Special Taxes"), effective on June 30, 1926; Title VIII (called "Stamp Taxes"), effective on the expiration of 30 days after the enactment of this Act; Sections 1004, 1005, 1006, and 1007, subdivision (a) of section 1008, sections 1009, 1010, 1011, 1012, 1014, 1018, 1019, and 1020, subdivisions (a) and (b) of section 1021, subdivision (c) of section 1025, and sections 1026, 1027, 1028, 1029, 1030, and 1031 (being certain administrative provisions). SEC. 1201. (a) There is hereby created in the Department of the Treasury the office of General Counsel for the Bureau of Internal Revenue. The General Counsel shall be appointed by the President, by and with the advice and consent of the Senate, and shall receive a salary at the rate of $10,000 per annum, payable out of any appropriation available for the payment of expenses of assessing and collecting the internal-revenue taxes. He shall perform such duties as are now required under the internal revenue laws to be performed by the Solicitor of Internal Revenue, or as may be prescribed by the Secretary or required by law. Commencing at such time as the General Counsel first appointed under this section qualifies and takes office, the office of Solicitor of Internal Revenue in the Department of Justice shall cease to exist. (b) There shall be in the Bureau of Internal Revenue the following officers who shall be appointed by the President, by and with the advice and consent of the Senate, and who shall perform such duties as may be prescribed by the Commissioner or required by law: (1) Four Assistant General Counsel each of whom shall receive a salary at the rate of $8,000 per annum. (2) One Assistant to the Commissioner who shall receive a salary at the rate of $8,000 per annum. The office of Assistant to the Commissioner provided by existing law is abolished to take effect at such time as the Assistant to the Commissioner first appointed under this section takes office. (3) One Special Deputy Commissioner who shall receive a salary at the rate of $7,500 per annum. SEC. 1202. Under such regulations as the Commissioner, with the approval of the Secretary, may prescribe all internal-revenue agents and inspectors may be granted leave of absence with pay on account of sickness, not to exceed 30 days in any calendar year. JOINT CONGRESSIONAL COMMITTEE ON INTERNAL-REVENUE TAXATION SEC. 1203. (a) There is hereby established a joint congressional committee to be known as the Joint Committee on Internal Revenue Taxation (hereinafter in this section referred to as the "Joint Committee"), and to be composed of ten members as follows: (1) Five members who are members of the Committee on Finance of the Senate, three from the majority and two from the minority party, to be chosen by such Committee; and (2) Five members who are members of the Committee on Ways and Means of the House of Representatives, three from the majority and two from the minority party, to be chosen by such Committee. (b) No person shall continue to serve as a member of the Joint Committee after he has ceased to be a member of the Committee by which he was chosen, except that the members chosen by the Committee on Ways and Means who have been re-elected to the House of Representatives may continue to serve as members of the Joint Committee notwithstanding the expiration of the Congress. A vacancy in the Joint Committee shall not affect the power of the remaining members to execute the functions of the Joint Committee, and shall be filled in the same manner as the original selection, except that (1) in case of a vacancy during an adjournment or recess of Congress for a period of more than two weeks, the members of the Joint Committee who are members of the Committee entitled to fill such vacancy may designate a member of such Committee to serve until his successor is chosen by such Committee, and (2) in the case of a vacancy after the expiration of a Congress which would be filled by the Committee on Ways and Means, the members of such Committee who are continuing to serve as members of the Joint Committee may designate a person who, immediately prior to such expiration, was a member of such Committee and who is re-elected to the House of Representatives, to serve until his successor is chosen by such Committee. (c) It shall be the duty of the Joint Committee— (1) To investigate the operation and effects of the Federal system of internalrevenue taxes; (2) To investigate the administration of such taxes by the Bureau of Internal Revenue or any executive department, establishment, or agency, charged with their administration; (3) To make such other investigations in respect of such system of taxes as the Joint Committee may deem necessary; (4) To investigate measures and methods for the simplification of such taxes, particularly the income tax; (5) To publish, from time to time, for public examination and analysis, proposed measures and methods for the simplification of such taxes, and to make to the Senate and the House of Representatives, not later than December 31, 1927, a definite report thereon, together with such recommendations as it may deem advisable; and (6) To report, from time to time, to the Committee on Finance and the Committee on Ways and Means and, in its discretion, to the Senate or the House of Representatives, or both, the results of its investigations, together with such recommendations as it may deem advisable. (d) The Joint Committee shall have the same right to obtain data and to inspect returns as the Committee on Ways and Means or the Committee on Finance, and to submit any relevant or useful information thus obtained to the Senate, the House of Representatives, the Committee on Ways and Means, or the Committee on Finance. The Committee on Ways and Means or the Committee on Finance may submit such information to the House or to the Senate, or to both the House and the Senate, as the case may be. (e) The Joint Committee shall meet and organize as soon as practicable after at least a majority of the members have been chosen, and shall elect a chairman and vice chairman from among its members and shall have power to appoint and fix the compensation of a clerk and such experts and clerical, stenographic, and other assistants, as it deems advisable. (f) The Joint Committee, or any subcommittee thereof, is authorized to hold hearings and to sit and act at such places and times, to require by subpoena or otherwise the attendance of such witnesses and the production of such books, papers, and documents, to administer such oaths, to take such testimony, to have such printing and binding done, and to make such expenditures, as it deems advisable. The cost of stenographic services in reporting such hearings shall not be in excess of 25 cents per hundred words. Subpoenas for witnesses shall be issued under the signature of the chairman or vice chairman. (g) The members shall serve without compensation in addition to that received for their services as Members of Congress; but they shall be reimbursed for travel, subsistence, and other necessary expenses incurred by them in the performance of the duties vested in the Joint Committee, other than expenses in connection with meetings of the Joint Committee held in the District of Columbia during such times as the Congress is in session. (h) The expenses of the Joint Committee shall be paid one-half from the contingent fund of the Senate and one-half from the contingent fund of the House of Representatives, upon vouchers signed by the chairman or vice chairman. REFUND OF CIGAR TAX SEC. 1205. (a) In the case of all cigars and little cigars in original and unbroken statutory packages held and intended for sale by any person on the effective date of the repeal of section 400 of the Revenue Act of 1924, including those in customs custody or in transit from the insular possessions of the United States, which on such date have affixed thereto stamps purchased at the rates of tax imposed by section 400 of the Revenue Act of 1924, there shall be allowed a refund equal to the difference between the tax imposed by such section and the tax imposed by section 400 of this Act. (b) No refund shall be allowed under this section unless claim therefor is presented within 60 days after the effective date of the repeal of section 400 of the Revenue Act of 1924. No refund shall be made to any person if the claim is for an amount less than $10. (c) The Commissioner, with the approval of the Secretary, shall adopt such rules and regulations and shall prescribe and furnish such blank forms as may be necessary to carry this section into effect. GOVERNMENT ACTUARY SEC. 1206. The salary of the Government Actuary, so long as the position is held by the present incumbent, shall be at the rate of $10,000 a year. INVESTED CAPITAL SEC. 1207. The computation of invested capital for any taxable year under the Revenue Act of 1917, the Revenue Act of 1918, and the Revenue Act of 1921, shall be considered as having been correctly made, so far as relating to the inclusion in invested capital for such year of income, war-profits, or excessprofits taxes for the preceding year, if made in accordance with the regulations in force in respect of such taxable year applicable to the relationship between invested capital of one year and taxes for the preceding year. INSTALLMENT SALES SEC. 1208. The provisions of subdivision (d) of section 212 shall be retroactively applied in computing income under the provisions of the Revenue Act of 1916, the Revenue Act of 1917, the Revenue Act of 1918, the Revenue Act of 1921, or the Revenue Act of 1924, or any of such Acts as amended. Any tax that has been paid under such Acts prior to the enactment of this Act, if in excess of the tax imposed by such Acts as retroactively modified by this section, shall, subject to the statutory period of limitations properly applicable thereto, be credited or refunded to the taxpayer as provided in section 284. AMORTIZATION DEDUCTION SEC. 1209. The deduction provided by paragraph (9) of subdivision (a) of section 214 or by paragraph (8) of subdivision (a) of section 234 of the Revenue Act of 1918 may (notwithstanding any provisions of the Revenue Act of 1921) be allowed for the taxable year 1918, 1919, or 1920 if claim therefor was made before June 15, 1924. PERSONAL SERVICE CORPORATIONS SEC. 1210. Any individual who has paid a tax (in accordance with section 218 of the Revenue Act of 1918 or section 218 of the Revenue Act of 1921) as a stockholder of a personal service corporation shall be entitled to a credit or refund, in the manner provided in section 284, if (a) such corporation has been finally determined not to be a personal service corporation, and (b) such corporation has paid the tax imposed by Title II of the Revenue Act of 1918 or Title II of the Revenue Act of 1921, as the case may be, and (c) claim therefor is filed within one year after the enactment of this Act, or before the expiration of the period of limitations upon the filing of such claim, whichever is the later. SALARIES OF STATE AND MUNICIPAL OFFICERS SEC. 1211. Any taxes imposed by the Revenue Act of 1924 or prior revenue Acts upon any individual in respect of amounts received by him as compensation for personal services as an officer or employee of any State or political subdivision thereof (except to the extent that such compensation is paid by the United States Government directly or indirectly), shall, subject to the statutory period of limitations properly applicable thereto, be abated, credited, or refunded. COMMUNITY PROPERTY SEC. 1212. Income for any period before January 1, 1925, of a marital community in the income of which the wife has a vested interest as distinguished from an expectancy, shall be held to be correctly returned if returned by the spouse to whom the income belonged under the State law applicable to such marital community for such period. Any spouse who elected so to return such income shall not be entitled to any credit or refund on the ground that such income should have been returned by the other spouse. sec. 22 (b) (15).. Accident insurance, amounts received from excluded from gross income, Accounting periods and methods of accounting: 12 Allocation of income and deductions where two or more related trades Change in accounting period, sec. 46.. Deductions and credits, period for which taken, sec. 43- sec. 48. Definitions: "Fiscal year," "paid or incurred," "taxable year," Gross income, period in which items included, sec. 42. Net income computed on basis of taxpayer's annual accounting Return for period of less than 12 months, sec. 47- Accrued income-tax, assessment and collection, sec. 714. Accrual basis, change from to installment basis, sec. 44 (c) By corporation, to evade surtax, sec. 104.. Prior to March 1, 1913, taxability of distributions from, sec. 115 (a).... In case of- Bankruptcy and receiverships, sec. 298... 124 Concealment of person or property to evade collection of tax, Deficiency, sec. 293. 121 Evasion of surtax, sec. 104 (a) Failure to file return, sec. 291. 120 Jeopardy assessments, sec. 297. 124 Nonpayment, sec. 294- Removal of property or departure from United States, sec. Time extended- To pay deficiency, sec. 296- 123 To pay tax, sec. 295. China Trade Act corporations not deemed affiliated, sec. 263--- Corporations deriving chief income from possession of United States, Foreign corporations, not deemed affiliated, sec. 238. Agent, returns by, for person under disability, sec. 51 (c). |