PENALTIES

SEC. 1017. (a) Any person required under this Act to pay any tax, or required by law or regulations made under authority thereof to make a return, keep any records, or supply any information, for the purposes of the computation, assessment, or collection of any tax imposed by this Act, who willfully fails to pay such tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof, be fined not more than $10,000, or imprisoned for not more than one year, or both, together with the costs of prosecution. (b) Any person required under this Act to collect, account for and pay over any tax imposed by this Act, who willfully fails to collect or truthfully account for and pay over such tax, and any person who willfully attempts in any manner to evade or defeat any tax imposed by this Act or the payment thereof, shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, be fined not more than $10,000, or imprisoned for not more than five years, or both, together with the costs of prosecution.

(c) Any person who willfully (1) aids or assists in the preparation or presentation of a false or fraudulent return, affidavit, claim, or document, authorized or required by the internal revenue laws, or (2) procures, counsels, or advises the preparation or presentation of such return, affidavit, claim, or document, shall (whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document) be guilty of a felony and, upon conviction thereof, be fined not more than $10,000, or imprisoned for not more than five years, or both, together with the costs of prosecution.

(d) Any person who willfully fails to pay, collect, or truthfully account for and pay. over, any tax imposed by Titles IV, V, VI, VII, and VIII, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty of the amount of the tax evaded, or not paid, collected or accounted for and paid over, to be assessed and collected in the same manner as taxes are assessed and collected. No penalty shall be assessed under this subdivision for any offense for which a penalty may be assessed under authority of section 3176 of the Revised Statutes, as amended, or for any offense for which a penalty has been recovered under section 3256 of the Revised Statutes.

(e) The term person as used in this section includes an officer or employee of a corporation or a member or employee of a partnership, who as such officer, employee, or member is under a duty to perform the act in respect of which the violation occurs.

ART. 1361. Specific penalties.-Section 1017 of the Act provides that a penalty of not more than $10,000 or imprisonment for not more than one year or both shall, upon conviction, be imposed on any person required by the Act to pay any tax or required by law or regulations made under authority of law to make a return, keep any records, or supply information, for the purposes of the computation, assessment, or collection of any tax imposed by the Act, who willfully fails to pay such tax, make such return, keep the required records or supply the required information at the time or

times fixed by law or regulations. Any person required by the Act to collect, account for, and pay over any tax imposed by the Act, who willfully fails to collect or truthfully account for and pay over such tax, or willfully attempts in any manner to evade or defeat such tax or the payment thereof, is, in addition to other penalties provided by law, guilty of a felony, and upon conviction, shall be fined not more than $10,000 or imprisoned for not more than five years, or both. The section further provides that any person who willfully (1) aids or assists in the preparation or presentation of a false or fraudulent return, affidavit, claim, or document, authorized or required by the internal revenue laws, or (2) procures, counsels, or advises the preparation or presentation of such return, affidavit, claim, or document, shall be guilty of a felony, and upon conviction thereof shall be fined not more than $10,000 or imprisoned for not more than five years or both, together with the costs of prosecution. This provision makes the aiding or assisting in the preparation or presentation, or the procuring or advising the preparation or presentation of such return, affidavit, claim, or document, a separate and distinct offense from the preparation or presentation of such return, affidavit, claim, or document, and it is not an essential element of the offense that the acts constituting such offense are done with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document. The term "person," as used in this article, includes an officer or employee of a corporation, or a member or employee of a partnership who as such officer, employee, or member is under a duty to perform the act in respect of which the violation occurs.

A specific penalty is enforceable only by suit or prosecution. For limitations on such prosecutions, see the Act of July 5, 1884, as amended by section 1010 of the Revenue Act of 1924.

INTEREST ON REFUNDS AND CREDITS

SEC. 1019. Upon the allowance of a credit or refund of any internal-revenue tax erroneously or illegally assessed or collected, or of any penalty collected without authority, or of any sum which was excessive or in any manner wrongfully collected, interest shall be allowed and paid on the amount of such credit or refund at the rate of 6 per centum per annum from the date such tax, penalty, or sum was paid to the date of the allowance of the refund, or in case of a credit, to the due date of the amount against which the credit is taken, but if the amount against which the credit is taken is an additional assessment, then to the date of the assessment of that amount. The term "additional assessment" as used in this section means a further assessment for a tax of the same character previously paid in part.

ART. 1371. Interest on refunds and credits.-Section 1019 of the act provides that upon the allowance of a credit or refund of any internal-revenue tax erroneously or illegally assessed or collected,

or any penalty collected without authority, or of any sum which was excessive or in any manner wrongfully collected, interest upon such credits or refund shall be paid at the rate of 6 per cent per annum. A claim for credit or refund is "allowed" within the meaning of the statute when the Commissioner approves the schedule in whole or in part for transmission to the proper accounting officer for credit or refund. The interest runs in the case of a refund from the date the tax, penalty, or sum was paid, to the date of the allowance of the refund, and in the case of a credit, from the date such tax, penalty, or sum was paid to the due date of the amount against which the credit is taken, but if the amount against which the credit is taken is an additional assessment, then to the date of the assessment of that amount. The term "additional assessment" as here used means a further assessment for a tax of the same character previously paid in part. Thus, an income tax is not of the " same character as a capitalstock tax.

INTEREST ON JUDGMENTS

SEC. 1020. Section 177 of the Judicial Code, as amended, is reenacted without change, as follows:

“SEC. 177. No interest shall be allowed on any claim up to the time of the rendition of judgment by the Court of Claims, unless upon a contract expressly stipulating for the payment of interest, except that interest may be allowed in any judgment of any court rendered after the passage of the Revenue Act of 1921 against the United States for any internal-revenue tax erroneously or illegally assessed or collected, or for any penalty collected without authority or any sum which was excessive or in any manner wrongfully collected under the internal-revenue laws."

ART. 1381. Interest on judgments.-Section 177 of the Judicial Code, as amended by section 1324 of the Revenue Act of 1921 and reenacted without change by section 1020 of the Revenue Act of 1924, provides that interest may be allowed in any judgment of any court rendered after the passage of the Revenue Act of 1921 against the United States for any internal-revenue tax erroneously or illegally assessed or collected, or for any penalty collected without authority, or any sum which was excessive or in any manner wrongfully collected under the internal-revenue laws.

PAYMENT OF AND RECEIPTS FOR TAXES

SEC. 1021. (a) Collectors may receive, at par with an adjustment for accrued interest, notes or certificates of indebtedness issued by the United States and uncertified checks in payment of income, war-profits, and excess-profits taxes and any other taxes payable other than by stamp, during such time and under such rules and regulations as the Commissioner, with the approval of the Secretary, shall prescribe; but if a check so received is not paid by the bank on which it is drawn the person by whom such check has been tendered shall remain liable for the payment of the tax and for all legal penalties and additions to the same extent as if such check had not been tendered.

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(b) Every collector to whom any payment of any income tax is made shall upon request give to the person making such payment a full written or printed receipt, stating the amount paid and the particular account for which such payment was made; and whenever any debtor pays taxes on account of payments made or to be made by him to separate creditors the collector shall, if requested by such debtor, give a separate, receipt for the tax paid on account of each creditor in such form that the debtor can conveniently produce such receipts. separately to his several creditors in satisfaction of their respective demands up to the amounts stated in the receipts; and such receipt shall be sufficient evidence in favor of such debtor to justify him in withholding from his next payment to his creditor the amount therein stated; but the creditor may, upon giving to his debtor a full written receipt acknowledging the payment to him of any sum actually paid and accepting the amount of tax paid as aforesaid (specifying the same) as a further satisfaction of the debt to that amount, require the surrender to him of such collector's receipt.

(c) In the payment of any tax under this Act not payable by stamp a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to 1 cent.

(d) Section 37 of the Act of August 27, 1894, entitled "An Act To reduce taxation, to provide revenue for the Government, and for other purposes," is hereby repealed.

ART. 1391. Payment of tax by Treasury certificates of indebtedness and Treasury notes.-Collectors of internal revenue are authorized and directed to receive in payment of income and profits taxes payable at the maturity of the certificates, respectively, Treasury certificates of indebtedness of any series which may be issued maturing on March 15, June 15, September 15, or December 15 of each year, respectively, and expressed to be acceptable in payment of income and profits taxes. Collectors are further authorized and directed to receive at par with an adjustment of accrued interest, in payment of income and profits taxes payable at or within six months before their respective maturities, Treasury notes of the United States expressed to be acceptable in payment of income and profits taxes. Where the taxes are due on Sunday they may be accepted on the following day. Collectors are not authorized hereunder to receive in payment of income and profits taxes any Treasury certificates of indebtedness or Treasury notes not expressed to be acceptable in payment of income and profits taxes, nor any Treasury certificates maturing on a date other than the date on which the taxes are payable. Collectors are authorized to receive Treasury certificates of indebtedness and Treasury notes which are acceptable as herein provided in payment of income and profits taxes in advance of the respective tax-payment dates. Treasury certificates acceptable in payment of income and profits taxes have one or more interest coupons attached, including as to each series a coupon payable at the maturity

of the certificates, but all interest coupons must in each case be detached by the taxpayer before presentation to the collector and collected in ordinary course when due. All matured coupons attached to Treasury notes must be detached by the taxpayer before presentation to the collector, and collected in ordinary course when due, but all coupons that have not matured must be attached to the notes when presented. Accrued interest from the last interest-payment date to the tax-payment date on any notes accepted will be remitted by the Federal reserve bank with which the collector makes a deposit, on the basis of schedules to be furnished by the collector to the Federal reserve bank. Receipts given by collectors to taxpayers should show the amount and description of the certificates or notes received in payment of taxes. The amount, at par, of the Treasury certificates of indebtedness or notes presented by any taxpayer in payment of income and profits taxes must not exceed the amount of the taxes to be paid by him, and collectors shall in no case pay interest on the certificates or notes, or accept them for an amount other or greater than their face value.

ART. 1392. Procedure with respect to Treasury certificates of indebtedness and Treasury notes.-Deposits of Treasury certificates of indebtedness and Treasury notes received in payment of income and profits taxes must be made by collectors, unless otherwise specifically instructed by the Secretary of the Treasury, with the Federal reserve bank of the district in which the collector's head office is located, or, in case such head office is located in the same city with a branch Federal reserve bank, with such branch Federal reserve bank. Specific instructions may be given to collectors by the Secretary of the Treasury in certain instances for the deposit of the certificates and notes with Federal reserve banks of other districts and branch Federal reserve banks. The term "Federal reserve bank" where it appears herein, unless otherwise indicated by the context, includes branch Federal reserve banks. Treasury certificates and Treasury notes accepted by the collector prior to the dates with respect to which they are acceptable in payment of taxes should be forwarded by the collector to the Federal reserve bank to be held for account of the collector until the tax-payment date and for deposit on such date.

Collectors of internal revenue are not authorized, unless express instructions otherwise are given by the Secretary of the Treasury, to receive in payment of income or profits taxes interim receipts issued by Federal reserve banks in lieu of definitive certificates or definitive notes.

Treasury certificates of indebtedness and Treasury notes should in all cases be indelibly stamped on the face thereof, as follows, by