$10 for refilling a cigar box.

$10 for failure to stamp wines when the case was not aggravated.

The above suggestions are not controlling but can be followed quite closely, when no intent to evade the tax can be shown.

367.-PROSECUTION OF OFFENDERS.

In all cases of violation of internal revenue laws it is the first duty of the Collector to notify the offender of his right under Section 3229 of the Revised Statutes to tender an offer in compromise. If an offer is not then made, it becomes the duty of the Collector to report the case for prosecution to the United States Attorney.

CHAPTER XXIII

CLAIMS

FOR ABATEMENT AND REFUND

OF TAXES

368.-CLAIM FOR REFUND.

Claim for refund of any tax or penalty erroneously paid or collected can be filed with the Collector under the provisions of Section. 3220 of the Revised Statutes of the United States. Section 22 of the Income Tax law of September 8, 1916, as amended by the Act of October 3, 1917, specifically provides for application of the general law to the income tax.

Claim for refund must be filed on what is known as Form 46. This official form can be obtained from the Collector. The taxpayer making the claim should fill out only the first page of the claim, stating therein the facts regarding assessment and payment of tax and the reasons why the amount paid should be refunded.

The claim must be sworn to by the individual filing it, or by a member of a partnership or officer of a corporation. If filed in behalf of a partnership or corporation, the relation of the individual who swears to it to such partnership or corporation must be plainly stated. The return can be sworn to before any officer qualified to administer an oath or before the Collector or a deputy collector.

To the claim should be attached any evidence that can be offered in support of it. The Department requires that the receipt for payment of the tax covered by the claim be attached.

After the claim has been filed with him, the Collector, using blank on the second page, certifies it to the Commissioner at Washington for consideration. The Commissioner subsequently gives notice of

his allowance or rejection of the claim. If he allows it, a Treasury Warrant for the amount refunded is sent directly to the claimant from Washington.

369.-MUST PRECEDE SUIT TO RECOVER.

Section 3226 of the Revised Statutes of the United States provides that no suit for recovery of taxes can be maintained unless the taxpayer has first appealed to the Commissioner of Internal Revenue for relief. Such appeal takes the form of a claim for refund. The filing of a claim is, therefore, an act essentially precedent to the maintenance of a suit to recover taxes erroneously paid to the Government.

370.-TWO-YEAR LIMITATION.

Section 3228 of the Revised Statutes provides that a claim for refund must be filed within two years after the erroneous collection of the tax, if the legal rights of the taxpayer with respect to subsequent suit for recovery of the tax (should the claim be rejected) are to be safeguarded.

The date of filing a claim with a Collector for certification and transmission to the Commissioner is, therefore, very important. This is the date that shows whether the claimant is within or without the two-year limitation. The taxpayer is, for this reason, advised to request of a Collector, or deputy collector, a written acknowledgment of the filing of a claim which will show the date of filing. Thus the rights of the taxpayer will be protected should the claim be delayed or lost in transmission.

371.-EXCEPTIONS TO TIME LIMIT.

While a claim for refund of a tax must, as a rule, be filed within two years after the collection of the tax, pursuant to the provisions of Section 3228, Revised Statutes of the United States, this limitation is removed by the last part of subdivision (a) of Section 14 of the Act of September 8, 1916, with respect to claims for refund of corporation excise tax paid under the Act of August 5, 1909 and income tax paid under the Act of October 3, 1913 and the Act of September 8, 1916, if, upon examination of a return it is disclosed that tax was paid in excess of the amount due.

Under this provision claims once rejected because the limitation as to time had expired when they were filed can be reopened, if the question at issue involves the examination of a return.

372.-CLAIM TO COLLECT JUDGMENT.

A claim for money recovered by suit must likewise be filed on Form 46. The successful litigant should so prepare the claim that it will state the names of all parties to the action, the cause of action, date of commencement, date of judgment, court in which recovered and amount recovered. To the claim must be attached a certified copy of the record and judgment of the court and a receipt for all costs from the clerk of the court showing that they have been paid in full. This claim should be filed with the Collector against whom judgment has been obtained. It must be sent by him to Washington for payment.

373.-CLAIM FOR ABATEMENT.

A claim for abatement of a tax or penalty erroneously assessed can be filed, but prior to payment. Such claim is to be prepared on what is known as Form 47, to be obtained from the Collector by request.

This claim for abatement is intended, of course, so to present a contention of error to the Department that a tax or penalty which has been assessed will not be collected. In it a taxpayer presents his side of a controversy over a disputed assessment. It should be prepared practically as a claim for refund. (See instructions above.)

374.-IN PREPARING FORM 47.

There is a footnote on Form 47 which would confuse any taxpayer without explanation. The footnote requires that "the substance of Circular No. 219 should be embraced in every affidavit on this Form, when applicable."

For the convenience of the taxpayer Circular No. 219 is herewith quoted:

CIRCULAR NO. 219.

Treasury Department,

Office of Commissioner of Internal Revenue,

Washington, D. C., Sept. 1, 1879.

Hereafter, every claim for the abatement or refunding of taxes should contain, at its close, a statement, under oath, in the following form:

"The above statements, together with those heretofore made in writing and filed as evidence by the claimant, embrace all the facts known to the claimant on which this claim is founded."

Collectors and Deputy Collectors, assisting in the preparation of new claims or in the completion of claims returned for additional evidence, will take care that the above statement is supplied or its omission explained.

Approved:

JOHN SHERMAN,

H. C. ROGERS, Acting Commissioner.

Secretary of the Treasury.

The provisions of the above circular are not always applicable. The circular has been quoted merely that taxpayers may not be mystified as to the meaning of the footnote on Form 47.

375.-CLAIMS FOR ALL TAXES.

Claims for refund and abatement can be filed with respect to all Federal internal taxes assessed, and claims for refund can be filed for taxes the payment of which is denoted by the use of stamps. In the latter case, however, the stamps representing the payment desired refunded should be attached to the claim if they have not been used, or, if they have been affixed to taxable articles or containers of taxable articles, they should be removed in the presence of an internal revenue officer and attached to the claim.