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use of the proper stamp, in addition to the penalties imposed by law for such sale or removal, it shall be the duty of the Commissioner of Internal Revenue, within a period of not more than two years after such removal or sale, upon such information as he can obtain, to estimate the amount of the tax which has been omitted to be paid, and to make an assessment therefor upon the manufacturer or producer of such article. He shall certify such assessment to the collector, who shall immediately demand payment of such tax, and upon the neglect or refusal of payment by such manufacturer or producer, shall proceed to collect the same in the manner provided for the collection of other assessed taxes.

As to assessments in general, see section 3182, page 112.

TITLE XI.-STAMP TAXES.

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Sec. 1100. [Act of February 24, 1919 (40 Stat., 1057).] That on and after April 1, 1919, there shall be levied, collected, and paid, for and in respect' of the several bonds, debentures, or certificates of stock and of indebtedness, and other documents, instruments, matters, and things mentioned and described in Schedule A of this title, or for or in respect of the vellum, parchment, or paper upon which such instruments, matters, or things, or any of them, are written or printed, by any person who makes, signs, issues, sells, removes, consigns, or ships the same, or for whose use or benefit the same are made, signed, issued, sold, removed, consigned, or shipped, the several taxes specified in such schedule. The taxes imposed by this section shall, in the case of any article upon which a corresponding stamp is now imposed by law, be in lieu of such tax.

Sec, 1101. That there shall not be taxed under this title any bond, note, or other instrument, issued by the United States, or by any foreign Government, or by any State, Territory, or the District of Columbia, or local subdivision-thereof, or municipal or other corporation exercising the taxing power; or any bond of indemnity required to be filed by any person to secure payment of any pension, allowance, allotment, relief, or insurance by the United States; or stocks and bonds issued by cooperative building and loan associations which are organized and operated exclusively for the benefit of their members and make loans only to their shareholders, or by mutual ditch or irrigating companies.

Indemnity bonds given under section 3646, R. S., to secure United States against lost checks issued on war risk

insurance not subject to tax. (T. D, 2900.) SEC. 1102. That whoever

(a) Makes, signs, issues, or accepts, or causes to be made, signed, issued, or accepted, any instrument, docu

Penalties.

1 See Regulations No. 55.

Penalties,

ment, or paper of any kind or deseription whatsoever without the full amount of tax thereon being duly paid;

(b) Consigns or ships, or causes to be consigned or shipped, by parcel post any parcel, package, or article without the full amount of tax being duly paid;

(c) Manufactures or imports and sells, or offers for sale, or causes to be manufactured or imported and sold, or offered for sale, any playing cards, package, or other article without the full amount of tax being duly paid;

(d) Makes use of any adhesive stamp to denote any tax imposed by this title without canceling or obliterating such stamp as prescribed in section 1104;

Is guilty of a misdemeanor and upon conviction thereof shall pay a fine of not more than $100 for each offense.

SEC.1103. That whoever

(a) Fraudulently cuts, tears, or removes from any vellum, parchment, paper, instrument, writing, package, or article, upon which any tax is imposed by this title, any adhesive stamp or the impression of any stamp, die, plate, or other article provided, made, or used in pursuance of this title;

(b) Fraudulently uses, joins, fixes, or places to, with, or upon any vellum, parchment, paper, instrument, writing, package, or article, upon which any tax is imposed by this title, (1) any adhesive stamp, or the impression of any stamp, die, plate, or other article, which has been cut, torn, or removed from any other vellum, parchment, paper, instrument, writing, package, or article, upon which any tax is imposed by this title; or (2) any adhesive stamp or the impression of any stamp, die, plate, or other article of insuflicient value; or (3) any forged or counterfeit stamp, or the impression of any forged or counterfeited stamp, die, plate, or other article:

(c) Willfully removes, or alters the cancellation, or defacing marks of, or otherwise prepares, any adhesive stamp, with intent to use, or cause the same to be usel, after it has been already used, or knowingly or willfully buys, sells, offers for sale, or gives away, any such washed or restored stamp to any person for use, or knowingly uses the same;

(d) Knowingly and without lawful excuse (theburden of proof of such excuse being on the accused) has in possession any washed, restored, or altered stamp, which has been removed from any vellum, parchment, paper, instrument, writing, package, or article:

Is guilty of a misdemeanor, and upon conviction shall be punished by a fine of not more than $1,000, or by imprisonment for not more than five years, or both, and any such reused, canceled, or counterfeit stamp and the vellum, parchment, document, paper, package, or article upon which it is placed or impressed shall be forfeited to the United States.

Method of canceling stamps.

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General

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Sec. 1104. That whenever an adhesive stamp is used for denoting any tax imposed by this title, except as hereinafter provided, the person using or affixing the same shall write or stamp or cause to be written or stamped thereupon the initials of his or its name and the date upon which the same is attached or used, so that the same may not again be used : Provided, That the Commissioner may prescribe such other method for the can

cellation of such stamps as he may deem expedient. Preparation and Sec. 1105. (a) That the Commissioner shall cause to be distribution

prepared and distributed for the payment of the taxes
prescribed in this title suitable stamps denoting the tax
on the document, articles, or thing to which the same may
be affixed, and shall prescribe such method for the aflix-
ing of said stamps in substitution for or in addition
to the method provided in this title, as he may deem ex-

pedient.
Commissioner (b) The Commissioner, with the approval of the Sec-

retary, is authorized to procure any of the stamps pro-
vided for in this title by contract whenever such stamps
can not be speedily prepared by the Bureau of Engrav-
ing and Printing; but this authority shall expire on
January 1, 1920, except as to imprinted stamps furnished
under contract, authorized by the Commissioner.

(c) All internal-revenue laws relating to the assessapplicable.

ment and collection of taxes are hereby extended to and
made a part of this title, so far às applicable, for the pur-
pose of collecting stamp taxes omitted through mistake
or fraud from any instrument, document, paper, writing,

parcel, package, or article named herein.
Stamps to be Sec. 1106. That the Commissioner shall furnish to the

Postmaster General without prepayment a suitable
quantity of adhesive stamps to be distributed to and
kept on sale by the various postmasters in the United
States. The Postmaster General may require each such
postmaster to give additional or increased bond as post-
master for the value of the stamps so furnished, and each
such postmaster shall deposit the receipts from the sale
of such stamps to the credit of and render accounts to
the Postmaster General at such times and in such form as
he may by regulations prescribe. The Postmaster Gen-
eral shall at least once monthly transfer all collections
from this source to the Treasury as internal-revenue col-
lections.

SEC. 1107. That the collectors of the several districts
shall furnish without prepayment to any assistant treas-
urer or designated depositary of the United States lo-
cated in their respective collection districts a suitable
quantity of adhesive stamps for sale. In such cases the
collector may require a bond, with sufficient sureties, to
an amount equal to the value of the adhesive stamps
so furnished, conditioned for the faithful return, when-
erer so required, of all quantities or amounts undisposed
of, and for the payment monthly of all quantities or

furnished to postmasters,

Sale of stamps.

amounts sold or not remaining on hand. The Secretary may from time to time make such regulations as he may find necessary to insure the safekeeping or prevent the illegal use of all such adhesive stamps.

SCHEDULE A.

1. Bonds of indebtedness: On all bonds, debentures, Rate of tax on or certificates of indebtedness issued by any person, and ments. all instruments, however termed, issued by any corpora- debtedness.

Bonds of intion with interest coupons or in registered form, known generally as corporate securities, on each $100 of face value or fraction thereof, 5 cents: Provided, That every renewal of the foregoing shall be taxed as a new issue: Provided further, That when a bond conditioned for the repayment or payment of money is given in a penal sum greater than the debt secured, the tax shall be based upon the amount secured.

Article 14, Regulations No. 53, defining “ certificates of

indebtedness," amended. (T. D. 2919.) 2. Bonds, indemnity and surety: On all bonds exe- Indemnity and

surety bonds. cuted for indemnifying any person who shall have become bound or engaged as surety, and on all bonds executed for the due execution or performance of any contract, obligation, or requirement, or the duties of any office or position, and to account for money received by virtue thereof, and on all policies of guaranty and fidelity insurance, including policies guaranteeing titles to real estate and mortgage guarantee policies, and on all other bonds of any description, made, issued, or executed, not otherwise provided for in this schedule, except such as may be required in legal proceedings, 50 cents: Provided, That where a premium is charged for the issuance, execution, renewal or continuance of such bond the tax shall be 1 cent on each dollar or fractional part thereof of the premium charged: Provided further, That policies of reinsurance shall be exempt from the tax imposed by this subdivision.

Collection of taxes upon premiums charged for issuance, execution, etc., of bonds or policies mentioned in this subdivision. (T. D. 2825.)

Article 28, Regulations No. 55, amended. (T. D. 2913.) 3. Capital stock, issued: On each original issue, Issue of capi. whether on organization or reorganization, of certificates of stock, or of profits, or of interest in property or accumulations, by any corporation, on each $100 of face value or fraction thereof, 5 cents: Provided, That where a certificate is issued without face value, the tax shall be 5 cents per share, unless the actual value is in excess of $100 per share, in which case the tax shall be 5 cents on each $100 of actual value or fraction thereof.

The stamps representing the tax imposed by this subdivision shall be attached to the stock' books and not to the certificates issued.

tal stock.

Sale or trans- 4. Capital stock, sales or transfers: On all sales, or fer of capital stock.

agreements to sell, or memoranda of sales or deliveries of, or transfers of legal title to shares or certificates of stock or of profits or of interest in property or accumulations in any corporation, or to rights to subscribe for or to receive such shares or certificates, whether made upon or shown by the books of the corporation, or by any assignment in blank, or by any delivery, or by any paper or agreement or memorandum or other evidence of transfer or sale, whether entitling the holder in any manner to the benefit of such stock, interest, or rights, or not, on each $100 of face value or fraction thereof, 2 cents, and where such shares are without par or face value, the tax shall be 2 cents on the transfer or sale or agreement to sell on each share, unless the actual value thereof is in excess of $100 per share, in which case the tax shall be 2 cents on each $100 of actual value or fraction thereof: Provided, That it is not intended by this title to impose a tax upon an agreement evidencing a deposit of certificates as collateral security for money Ioaned thereon, which certificates are not actually sold, nor upon the delivery or transfer for such purpose of certificates so deposited: Provided further, That the tax shall not be imposed upon deliveries or transfers to a broker for sale, nor upon deliveries or transfers by a broker to a customer for whom and upon whose order he has purchased same, but such deliveries or transfers shall be accompanied by a certificate setting forth the facts: Provided further, That in case of sale where the evidence of transfer is shown only by the books of the corporation the stamp shall be placed upon such books; and where the change of ownership is by transfer of the certificate the stamp shall be placed upon the certificate; and in cases of an agreement to sell or where the transfer is by delivery of the certificate assigned in blank there shall be made and delivered by the seller to the buyer a bill or memorandum of such sale, to which the stamp shall be affixed; and every bill or memorandum of sale or agreement to sell before mentioned shall show the date thereof, the name of the seller, the amount of the sale, and the matter or thing to which it refers. Any person liable to pay the tax as herein provided, or anyone who acts in the matter as agent or broker for such person, who makes any such sale, or who in pursuance of any such sale delivers any certificate or evidence of the sale of any stock, interest or right, or bill or memorandum thereof, as herein required, without having the proper stamps affixed thereto with intent to evade the foregoing provisions, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall pay a fine of not exceeding $1,000, or be imprisoned not more than

six months, or both. Sales of pro

5. Produce, sales of, on exchange: Upon each sale, agreement of sale, or agreement to sell (not including

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