Page images
PDF
EPUB
[blocks in formation]

(a) General. Each district has a mission to encourage and achieve the highest possible degree of voluntary compliance with the economic stabilization regulations and guidelines by: Enforcing the statutory sanctions applicable to the President's Economic Stabilization Program through the investigation of possible violations of such regulations and guidelines and the recommendation (when warranted) of civil or criminal action; developing information concerning the extent of violations of all economic stabilization regulations and guidelines; and measuring the effectiveness of the investigation process.

(b) Investigative procedure. A person who is issued a notice of violation will be given an opportunity to explain his position with respect to the alleged violation prior to the submission of the case by the district director to Regional Counsel or to a U.S. attorney, as appropriate, unless compelling reasons exist to the contrary. The principal (the person to whom the notice was issued) will be granted an interview if he makes a request within 48 hours after receipt of the notice of violation. At this interview, the principal may have counsel present and will be informed, by a general oral statement, of the features of his case which are alleged to show a violation of economic stabilization regulations and guidelines and, at the same time, there will be made available to the principal sufficient facts, figures, and legal analysis to acquaint him with the nature, basis, and other essential elements of the alleged violation. The procedure described in this paragraph shall be in lieu of the appeal procedure set forth in Subpart G of this part.

(c) Civil and criminal action. The Internal Revenue Service may recommend, to the full extent of sanctions available under the President's Economic Stabilization Program, with respect to the al

leged violations, the institution of appropriate actions against the principal. § 401.503 Violations other than those discovered through requests for interpretation, or ruling, or complaint. A violation discovered through any means other than through a request for an interpretation or ruling, or a complaint, shall be reported to the appropriate district director, including but not limited to a violation revealed by a report submitted in accordance with §§ 101.13 and 101.23 of this title, or during monitoring or spotcheck pursuant to §§ 101.15 and 101.25 of this title, or during any other authorized investigation. Subpart G-Appeals

§ 401.601 Right to appeal. Any person who is—

(a) A person aggrieved (as defined in § 401.2), or

(b) Subject to any provision of a ruling or interpretation,

may appeal in the manner set forth in this subpart. A person is, for the purposes of paragraph (b) of this section, subject to such a provision only if the ruling or interpretation was issued to him, the action is adverse to him, and he has a substantial pecuniary interest. A principal referred to in § 401.502 (b) may not make an appeal pursuant to the provisions of this subpart with respect to the subject matter of the notice of violation issued to him. Any appeal filed by or on behalf of a person not subject to the provision protested; or otherwise not in accordance with this subpart, may be rejected by the appropriate district director. See § 401.502 (b) for the appeal procedure applicable in the case of a principal.

[blocks in formation]
[blocks in formation]

The district conferee shall process and decide an appeal pursuant to the procedural rules of this section:

(a) Within a reasonable time after the filing of any appeal in accordance with this subpart, but in no event more than 10 days after such filing, the district conferee shall:

(1) Grant or deny such appeal in whole or in part,

(2) Advise the appellant in writing that, in accordance with established procedures, a decision will be delayed, or

(3) If a conference has been requested and granted, issue a notice of the date it is to be held (see § 401.701),

(b) Where a conference on an appeal has been granted, the district conferee shall, within 10 days after such conference, grant or deny such appeal in whole or in part.

(c) Notice of any such action taken by the district conferee shall promptly be issued to the appellant. In any case in which an appeal has been denied in whole or in part, the appellant shall be advised by such notice that he may appeal to the Pay Board or Price Commission in accordance with the provisions of §§ 205.20 through 205.28 of this title, or §§ 305.20 through 305.28 of this title, respectively.

For purposes of this title, the denial of an appeal in whole or in part by a district conferee pursuant to this section shall be considered a final action by the Internal Revenue Service. § 401.605

appeal.

Effect of decision upon

A decision of a district conferee pursuant to § 401.604 shall be binding on all Service personnel and may only be re

versed upon appeal if granted, to the Cost of Living Council, Pay Board, or Price Commission, as appropriate, pursuant to the provisions of this title or by a final court decision.

Subpart H-Conference and Practice Requirements

§ 401.701 Scope of conference and practice requirements.

The conference and practice provisions and requirements prescribed by 26 CFR Part 601 are generally adopted with respect to practice (including conferences) before all offices of the Internal Revenue Service, including the Office of the Chief Counsel, relating to economic stabilization matters, to the extent applicable and consistent with the policies and principles promulgated in this part; except however, that the rules relating to authority to practice shall be governed solely by § 401.702.

§ 401.702

Rules governing authority to practice; who may practice.

(a) In general. No person may appear in a representative capacity on behalf of another unless such person is recognized to practice before the Internal Revenue Service on economic stabilization matters. In general, only the following persons will be recognized to practice before the Internal Revenue Service on economic stabilization matters:

(1) Any attorney, as defined in § 401.2, who files with the Revenue Service a written declaration that he is currently qualified as an attorney and is authorized to represent the particular party on whose behalf he acts;

(2) Any certified public accountant, as defined in § 401.2, who files with the Revenue Service a written declaration that he is currently qualified as a certified public accountant and is authorized to represent the particular party on whose behalf he acts;

(3) Any individual may appear on his own behalf and may otherwise appear, provided he presents satisfactory identification, in the following classes of cases: (i) An individual may represent another individual who is his regular full-time employer, may represent a partnership of which he is a member or a regular full time employee, or may represent without compensation a member of his immediate family.

(ii) Corporations (including parents, subsidiaries or affiliated corporations),

trusts, estates, associations, or organized groups may be represented by bona fide officers or regular full-time employees.

(iii) Trusts, receiverships, guardianships, or estates may be represented by their trustees, receivers, guardians, administrators or executors or their regular full-time employees.

(iv) Any governmental unit, agency, or authority may be represented by an officer or regular employee in the course of his official duties.

(b) Government officers and employees; others. No officer or employee of the United States in the executive, legislative, or judicial branch of the Government, or in any agency of the United States, including the District of Columbia, may practice before the Service, except that such officer or employee may, subject to the conditions and requirements of these regulations and of 18 U.S.C. 205, represent a member of his immediate family or any other person or estate for which he serves as guardian, executor, administrator, trustee, or other presonal fiduciary. No Member of Congress or Resident Commissioner (elect or serving) may practice before the Revenue Service in connection with any matter for which he directly or indirectly receives, agrees to receive, or seeks any compensation.

(18 U.S.C. 203, 205.)

Subpart 1-Rules and Regulations § 401.801

Rules and regulations.

(a) Formulation. Internal Revenue Service rules relating to economic stabilization matters take various forms. The most important rules are issued as regulations prescribed by the Commissioner. Other rules may be issued over the signature of the Commissioner or the signature of any other official to whom authority has been delegated. Regulations are prepared in the Office of the Chief Counsel. After approval by the Chief Counsel and the Commissioner, the regulations are published in the FEDERAL REGISTER.

(b) Publication of rules and regulations. All Internal Revenue Services regulations relating to economic stabilization matters are published in the FEDERAL REGISTER and in the Code of Federal Regulations. The FEDERAL REGISTER is also the authoritative instrument of the Internal Revenue Service for the announcement of official rulings, decisions, opinions, and procedures, and for the

publication of other items pertaining to economic stabilization matters. It is the policy with respect to economic stabilization matters to have published in the FEDERAL REGISTER all substantive and procedural rulings of importance or general interest, the publication of which is considered necessary to promote a uniform application of economic stabilization regulations and guidelines. It is also the policy to have published in the FEDERAL REGISTER all rulings which revoke, modify, amend, or affect any published ruling. Rules relating solely to matters of internal practices and procedures are not published; however, statements of Internal Revenue Service practices and procedures affecting rights or duties of citizens or industry regulation, which appear in internal documents, are published in the FEDERAL REGISTER.

[blocks in formation]

mission, the Council, Board, or Commission shall transmit such ruling to the Office of the Chief Counsel for publication in the FEDERAL REGISTER, as a Cost of Living Council Ruling, Pay Board Ruling, or Price Commission Ruling, as appropriate.

Subpart K-Inspection of Internal Revenue Economic Stabilization Records

§ 401.1001 Inspection of Internal Revenue Service stabilization records by Department of the Treasury and Department of Justice.

(a) In general. Pursuant to the provisions of section 205 of the Economic Stabilization Act of 1970 (Public Law 91-379, 84 Stat. 799), as amended by the Economic Stabilization Act Amendment of 1971 (Public Law 92-210, 85 Stat. 747), officers and employees of the Department of the Treasury (including the Internal Revenue Service and the Office of the Chief Counsel for the Internal Revenue Service) and the Department of Justice whose official duties require inspection of returns made in respect of any tax described in paragraph (a) (2) of § 301.6103(a)-1 of 26 CFR Part 301, or include the administration or enforcement of the provisions of the Economic Stabilization Act of 1970, as amended, may inspect the stabilization records of the Internal Revenue Service without making written application therefor. If the head of a bureau or office in the Department of the Treasury (not a part of the Internal Revenue Service or the Office of Chief Counsel for the Internal Revenue Service), or the Department of Justice, desires to inspect, or to have an employee of his bureau or office inspect, any such records in connection with some matter officially before him for reasons other than tax administration purposes or the administration or enforcement of the provisions of the Economic

Stabilization Act of 1970, as amended, the inspection may, in the discretion of the Secretary of the Treasury or the Commissioner of Internal Revenue or the delegate of either, be permitted upon written application by the head of the bureau or office desiring the inspection. The application shall be made to the Commissioner

of Internal Revenue,

Washington, D.C. 20224, and shall show the name and address of the person about whom records are to be inspected and the reason why inspection is desired. The information obtained from inspection pursuant to this paragraph may be used as evidence in any proceeding, conducted by or before any department or establishment of the United States, or to which the United States is a party.

(b) Definitions of terms-(1) Stabilization records. For purposes of this section, the term "stabilization records" includes

(i) All schedules, lists, written statements, or other written documents filed by or on behalf of any person with the Internal Revenue Service, and

(ii) All other reports, information received orally or in writing, factual data, documents, papers, abstracts, memoranda, or evidence taken, or any portion thereof, relating to any person and held by the Internal Revenue Service,

to the extent any such item is with respect to the administration or enforcement of any provision of the Economic Stabilization Act of 1970, as amended, and is not part of a return (as defined in § 301.6103 (a)-1(a) (3) (i) of 26 CFR Part 301).

(2) Person. For purposes of this section, the term "person" has the meaning given to such term under section 7701(a) (1) of the Internal Revenue Code of 1954 (68A Stat. 911; 26 U.S.C. 7701 (a)(1)).

[37 F.R. 3741, Feb. 19, 1972]

APPENDIX A-TEMPORARY EMERGENCY COURT

OF APPEALS OF THE UNITED STATES

EDITORIAL NOTE: Section 211 of the Economic Stabilization Act of 1970, as amended, provided for a "Temporary Emergency Court of Appeals of the United States”. The rules governing the procedures for the Temporary Emergency Court of Appeals of the United States are set forth below, in their entirety, as Appendix A, for the convenience of the user:

[blocks in formation]

Rule 9

Office hours.

Rule 8

Rule 10

Court executive, clerk, deputy clerks and supporting personnel.

[blocks in formation]
« PreviousContinue »