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This limitation does not apply to claims under section 3221, page 142.

Section 3228 does not apply to claims for refund of legacy taxes under section 3, act of June 27, 1902. (13 Comp. Dec., 707.)

The act above mentioned is not a part of the revenue system. No protest re ed. (L'nited States 1. Shipley, 197 Fed., 265.)

Act removing bar in case of legacy taxes and Spanish War revenue taxes. (Act July 27, 1912, 37 Stat., 240.)

The two years' limitation is applicable in cases in the Court of Claims, and not the six years' limitation of Sec. 156, Judicial Code. (Ft. Pitt Gas Co. v. United States, 49 Ct. Clms., 224; T. D. 1979.)

See section 14, act of September 8, 1916, Appendix, p. 814, as to removing bar of two years' limitations as to certain claims for refund under section 3228, R. S. (23 Compt. Dec., 299, 315.)

SECTION 1. (Act of February 28, 1916 (39 Stat., 14, 20).] The Commissioner of Internal Revenue is authorized to reopen and allow claims for taxes for the recovery of which suits are pending and which would be allowable under the decision of the Supreme Court in the case of McCoach, collector, against Winehill and Schuylkill Haven Railroad Company; and there is hereby appropriated for the payment of such claims a total sum not to exceed $300,000, this appropriation to be available for the payment of such of the aforesaid claims as are not payable out of moneys heretofore appropriated and available during the fiscal year ending June thirtieth, nineteen hundred and sixteen, for the payment of claims.

Condition precedent to suit under this section not applicable to inheritance taxes imposed by act of June 13, 1898, if taxpayer has complied with section 3 of the act of June 13, 1898, and section 2 of the act of July 27, 1912, and presented claim for refund. (Rand v. United States, 249 U. S.

503; T. D. 2886.) Sec. 3229. The Commissioner of Internal Revenue, Compromises. with the advice and consent of the Secretary of the Treasury, may compromise any civil or criminal case arising under the internal-revenue laws instead of commencing suit thereon; and, with the advice and consent of the said Secretary and the recommendation of the AttorneyGeneral, he may compromise any such case after a suit thereon has been commenced. Whenever a compromise is made in any case there shall be placed on file in the office of the Commissioner the opinion of the Solicitor of Internal Revenue, or of the officer acting as such, with his reasons therefor, with a statement of the amount of tax assessed, the amount of additional tax or penalty imposed by law in consequence of the neglect or delinquency

the person against whom the tax is assessed, and the amount actually paid in accordance with the terms of the compromise.

Compromises after judgment, remissions, and pardons. (See sec. 3469, p. 656.)

Officers compromising offenses except as authorized by law; penalty. (Sec. 3169, p. 98, and sec. 3170, p. 101.)

District attorney or marshal compromising cases illegally; penalty. (Sec. 3170, p. 101.)

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Opinion of the Attorney General as to the limitation of the power to compromise vested in the Secretary of the Treasury under sections 3229 and 3169, pages 149, 656. (17 Op. Atty. Gen., 213; 27 Int. Rer. Rec., 334.)

Compromises; course of proceedings indicated. The functions of the Secretary of the Treasury and the Attorney General are advisory. (12 Op. Atty. Gen., 472; 8 Int. Rev. Rec., 86.)

Power to compromise ceases as soon as judgment is rendered. (13 Op. Atty. Gen., 479.)

No power to compromise proceedings against officers. (14 Op. Atty. Gen., 8, 13.)

The right to compromise is understood to embrace the criminal as well as the civil liability of the defendant. (13 Op. Atty. Gen., 480.)

Can not compromise taxes legally due from a solvent taxpayer. (T. D. 18854; 16 (p. Atty. Gen., 240 ; 25 Int. Rev. Rec., 14. United States 1". Roelle et al., 24 Int. Rer. Rec., 332; Fed. Cas. No. 16186.)

Commissioner has power to compromise a tax after assessment and before payment. Question as to compromise of an admitteil valid tax on a solvent taxpayer not involved. (30 Op. Atty. Gen., 329.)

Power to remit tax. (Dorsheimer x. C'nited States, 7 Wall., 166; 10 Int. Rev. Rec., 131.)

Compromise of liability of obligors on an export bond. (13 Op. Atty. Gen., 115.)

Canadian bank notes paid out by banks in the United States, tax on, compromise. (21 Op. Atty. Gen., 577.)

No power to compromise a suit brought against a collector of internal revenue for the recovery of tax claimed to have been illegally collected. (Coca Cola Co. 1. Rucker; 23 Op. Atty. Gen., 507.)

Money deposited for compromise can not be held or set off against tax due. (Boughton r. United States, 12 Ct. Cls., 330; 13 Id., 284.)

When party complies with terms of compromise it is conclusive. (Sweeny v. United States, 17 Wall., 75; l'nitel States v. Child & Co., 12 Id., 232; Mason 1. United States, 17 Id., 67.)

Discontinuance on payment of costs a compromise. (Op. Atty. Gen. (Hoar), 11 Int. Rev. Rec., 98 ; 12 Op. Atty. Gen. (Evarts). 536.)

Commissioner may direct an unconditional dismissal of a suit without recommendation of Attorney General. (12 Op. Atty. Gen., 553.)

The Attorney General exercises superintendence and direction over United States attorneys and general supervision over proceedings instituted for the benefit of the United States. He may absolutely dismiss or discontinue suits in which the Government is interested ; a fortiori, he may terminate the same upon terms, at any stage. hy ray of compromise or settlement. (22 Op. Atty. Gen., 491: T. D. 21270.)

An agreement made with the United States District Attorney in the nature of a compromise is not valid unless with the concurrence of the officers above named. (I'nited States v. Quantity of Distilled Spirits, 4 Ben., 319; Fed. Cas. No. 16099.)

There is no authority for a district attorney or collector to compromise, adjust, or settle any charge or complaint for any violation, or alleged violation, of the internalrevenue law. (T. D. 845.)

United States Commissioners have no authority to settle cases. (T. D. 1216.)

A compromise operates for the protection of the offender against subsequent proceedings as fully as a former conviction or acquittal, and is a bar to a suit on a bond to recover penalties based upon the same offense. (United States v. Chouteau, 102 U. S. 603; 27 Int. Rev. Rec., 5.)

The officers of the Treasury Department are authorized to compromise a case involving a violation of the oleomargarine statutes upon terms which, in their judgment. are just and reasonable. The initiative of action is with the Commissioner. (26 Op. Atty. Gen., 282.)

Suits against illicit distillers may not be nolled without permission of Attorney General. (Sec. 3230, R. S.)

Commissioner may instruct United States attorney to prosecute or abstain. (Secs. 838, p. 659; 3214, p. 131. )

Instructions relative to offers in compromise. (T. I.
18854; T. D. 20265.)

Compromises induced by threats and duress. (T. D. 206;
Int. Rev. Cir, 579.)

Five-dollar offers. (T. D. 496.)

Offers in compromise should include payment of costs. (T. D. 612.)

Deposit of amount offered. (T. D. 1233.)

Favorable consideration will not be given to offers in compromise where the violation of law is deliberate and with intent to defraud and the evidence is sufficient to convict. (T. D. 1795.)

Compromises in substitution cases. (T. D. 1872; T. I. 2007.) In cases of corporations failing to make returns. (29 Opin. Atty. Gen., 217.) In cases of failure to make return of income tax. (T. Ds. 2015, 2193, 2311, 2349.)

Only remedy of corporation after unfavorable verdict (other than appeal) is application to the Commissioner for compromise authorized by this section. (United States v. Acorn Roofing Co., 204 Fed., 157.)

Commissioner has authority to compromise tax liability case before proceeding to distraint and sale. (Op. Atty. Gen., January 30, 1915.)

One failing to file income tax return can not be successfully prosecuted, where collector of internal revenue's offer to compromise on payment of tax and penalty was accepted. (Rau r. 'nited States, 260 Fed., 131.)

Where internal revenue officers, after defendant admitted
he had not filed income tax return, accepted both tax and
penalty, informing defendant that such payment would
end matter and there would be no indictment, such ac-
ceptance and statement were a compromise and constitute
bar to prosecution. (Id.)

Fact that sum paid by defendant was retained by the
Treasury is evidence that money was received in com-

promise of case. (Id.)
Sec. 3230. No discontinuance or nolle prosequi of any


ances of prosecu. prosecution under section three thousand two hundred tions. and fifty-seven shall be allowed without the permission in writing of the Secretary of the Treasury and the Attorney General.

Continuance of Sec. 3231. It shall be lawful for any court in which

internal - revenue anysuit orcriminal proceeding arising underthe internal- cases. revenue laws may be pending, to continue the same at any stage thereof, for good cause shown on motion by the district attorney.


Sec. 3232. Occupation not to be carried on

until tax is paid.
3233. Business to be registered.

Joint resolution, May 8, 1876.
Selling on passenger railroad

trains or vessels. 3234. Persons in partnership at same

place liable for only one tax. 3235. Payment of one special tax not

to cover several places of busi

ness. 3236. When more than one pursuit is

carried on in same place by

same person at same time. 3237 (amended). When special tax to

be due, how reckoned. 3238. Stamps for special taxes. 3239. Special-tax stamp to be exhibited

in place of business. 3240 (amended). List of special-tax

payers to be exhibited in col

lector's office. 3241. Death or removal after paying

tax; business carried on with

out additional tax. 3242. Carrying on business without

payment of special tax; pen

alties. 16. Act February 8, 1875. Same. 4. Act August 2, 1886.

Same as to oleomargarine. 4. Act May 9, 1902.

Same as to process, renovated,

or adulterated butter. 3243. Payment of special tax not to

authorize violation of State laws nor prohibit State taxa

tion. 3244 (amended). Special taxes im

posed on whom :
1st. Brewers.
2d. Manufacturers of stills.
3d. Rectifiers.
4th. Retail liquor dealers.

Wholesale liquor dealers. 5th. Retail dealers in malt

liquors. Wholesale dealers in malt

liquors. 3. Act of August 2, 1886, as amended

by section 2, act of May 9, 1902: Manufacturers of oleomar

garine. Wholesale dealers in oleomar

garine. Retail dealers in oleomar


4. Act of May 9, 1902:

Manufacturers of process or

renovated butter. Manufacturers of adulterated

butter. Wholesale dealers in adulter

ated butter.
Retail dealers in adulterated

3. Act of June 6, 1896:

Manufacturers of filled cheese.
Wholesale dealers in filled

cheese. Retail dealers in

filled cheese, 36. Act of June 13, 1898:

Manufacturers, packers, and

repackers of mixed flour. 3246 (amended). Special tax not to

apply to vintners or apothe

caries in certain cases. 1000. Act of February 24, 1919:

Capital stock tax. 1001. (Same.)

Ship brokers.
Customhouse brokers.
Theaters, museums, and con-

cert halls.
Public exhibitions and shows.
Bowling alleys and billiard

Shooting galleries.
Riding academies.
Operating or renting passenger


Brewers, distillers, etc. 1002. (Same).

Tobacco, cigar, and cigarette

manufacturers. 1003. (Same).

Use of yachts, pleasure boats,

etc. 1004. (Same).

Receipts; credit of tax paid. 1005. (Same).

Penalty. 1006-1009. (Same).

Selling, compounding, etc., of

opium, etc. 1, 26, 27. Act of February 14, 1917.

Sale of intoxicating liquors in

Alaska. 12. Act of March 3, 1917. Sale of in

toxicating liquors in District of Columbia.

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