the notice, shall sell the articles so seized at public auction.

Sec. 3724. (e) Deposit of proceeds of sale.-After deducting the expenses of appraisement and sale, the collector or deputy collector, as the case may be, shall deposit the proceeds to the credit of the Secretary.

Sec. 3724. (f) Remission of forfeiture

Sec. 3724. (f) (1) Claim.-Within one year after the sale of any goods, wares, or merchandise, as provided in the preceding subsections, any person claiming to be interested in the property sold, may apply to the Secretary for a remission of the forfeiture thereof, or of any part thereof, and u restoration of the proceeds of the sale.

Sec. 3724. (f) (2) Allowance.-The Secretary may grant the same upon satisfactory proof, to be furnished in such manner as he shall prescribe: Provided, That it shall be satisfactorily shown

(A) That the applicant, at the time of the seizure and sale of the said property, and during the intervening time, was absent, out of the United States, or in such circumstances as prevented him from knowing of the seizure, and that he did not know of the same; and also

(B) That the said forfeiture was incurred without willful negligence or any intention of fraud on the part of the owner of said property.

Sec. 3724. (g) Distribution of proceeds of sale.— If no application for restoration of the proceeds is made within one year, as prescribed in the foregoing

subsection, the Secretary shall, at the expiration of the said time, cause the proceeds of the sale of the said property to be distributed according to law, as in the case of goods, wares, or merchandise condemned and sold pursuant to the decree of a compe

tent court.

Sec. 3725. Stamping, marking, and branding seized goods.

Where any whisky or tobacco, or other article of manufacture or produce, requiring brands, stamps, or marks of whatever kind to be placed thereon shall be sold upon distraint, forfeiture (except as provided in section 2805 with respect to distilled spirits), or other process provided by law, the same not having been branded, stamped, or marked, as required by law, the officer selling the same shall, upon sale thereof, fix or cause to be affixed the brands, stamps, or marks, so required.

Sec. 3726. Customs laws applicable.

The provisions of law applicable to the remission or mitigation by the Secretary of forfeitures under the customs laws shall apply to forfeitures incurred or alleged to have been incurred under the internal revenue laws.

Sec. 3727. Cross references.

For provisions relating to

Destruction of stills and distilling apparatus after judgment of forfeiture, see section 2853. Release of seized distillery or distilling apparatus before judgment, see section 2852. Disposal of forfeited distilled spirits and equipment and material for distilling, section 2807.

Sec. 3740. Authorization to commence suit. No suit for the recovery of taxes, or of any fine, penalty, or forfeiture, shall be commenced unless the Commissioner authorizes or sanctions the proceedings and the Attorney General directs that the suit be commenced.

Sec. 3741. Continuance.

It shall be lawful for any court in which any suit or criminal proceeding arising under the internal revenue laws may be pending to continue the same at any stage thereof for good cause shown on motion by the district attorney.

Sec. 3742. Discontinuance or nolle prosequi.

For discontinuance or nolle prosequi of prosecutions against distillers for defrauding or attempting to defraud the United States of tax on distilled spirits, see section 2806 (f).

Sec. 3743. Regulations.

It shall be the duty of the Commissioner, with the approval of the Secretary, to establish such regulations, not inconsistent with law, for the observance of revenue officers, respecting suits arising under the internal revenue laws in which the United States is a party, as may be deemed necessary for the just responsibility of those officers and the prompt collection of all revenues and debts due and accruing to the United States under such laws.

Sec. 3744. Suits for taxes.

see

Taxes may be sued for and recovered in the name of the United States in any proper form of action, before any district court of the United States, for the district within which the liability to such tax is incurred, or where the party from whom such tax is due resides at the time of the commencement of the said action.

Sec. 3745. Suits for fines, penalties, and forfeitures.

Sec. 3745. (a) Collector's report to district attorney. It shall be the duty of every collector of internal revenue having knowledge of any willful violation of any law of the United States relating to the revenue, within thirty days after coming into possession of such knowledge, to file with the district attorney of the district in which any fine, penalty, or forfeiture may be incurred, a statement of all the facts and circumstances of the case within his knowledge, together with the names of the witnesses, setting forth the provisions of law believed to be so violated on which reliance may be had for condemnation or conviction.

Sec. 3745. (b) Prosecutions by district attorney.— For the duty of every district attorney to whom the collector reports the cases in which

such fines, penalties, or forfeitures have been incurred in the district of such attorney to cause proper proceedings to be commenced and prosecuted, when authorized or sanctioned by the Commissioner and directed by the Attorney General, see R. S. 838 as amended by Fed. 27, 1877, c. 69, s. 1, 19 Stat. 241 (U. S. C., Title 28, § 486).

Sec. 3745. (c) Plaintiff, proceedings, and venue.— All suits for fines, penalties, and forfeitures, where not otherwise provided for, shall be brought in the name of the United States, in any proper form of action, or by any appropriate form of proceeding, qui tam or otherwise, before any district court of the United States for the district within which said fine, penalty, or forfeiture may have been incurred, or before any other court of competent jurisdiction.

Sec. 3745. (d) Costs.-In case of any suit for penalties or forfeitures brought upon information received from any person, other than a collector, deputy collector, revenue agent, or inspector, the United States shall not be subject to any costs of suit.

Sec. 3746. Suits for recovery of erroneous refunds.

Sec. 3746. (a) Refunds after limitation period.— Any portion of an internal revenue tax (or any interest, penalty, additional amount, or addition to such tax) refund of which is erroneously made, within the meaning of section 3774, may be recovered by suit brought in the name of the United States, but only if such suit is begun within two years after the making of such refund.

Sec. 3746. (b) Refunds otherwise erroneous.Any portion of an internal revenue tax (or any interest, penalty, additional amount, or addition to such tax) which has been erroneously refunded (if such refund would not be considered as erroneous under section 3774) may be recovered by suit brought in the name of the United States, but only if such suit is begun before the expiration of two years after the making of such refund.

Sec. 3746. (c) Refunds based on fraud or misrepresentation.-Despite the provisions of subsections (a) and (b) such suit may be brought at any time within five years from the making of the refund if it appears that any part of the refund was induced by fraud or the misrepresentation of a material fact.

Sec. 3746. (d) Interest.-Erroneous refunds recoverable by suit under this section shall bear interest at the rate of 6 per centum per annum from the. date of the payment of the refund.

Sec. 3747. Disposition of judgments and moneys recovered.

All judgments and moneys recovered or received for taxes, costs, forfeitures, and penalties, shall be

paid to collectors as internal revenue taxes are required to be paid.

Sec. 3748. Periods of limitation.

Sec. 3748. (a) Criminal prosecutions.-No person shall be prosecuted, tried, or punished, for any of the various offenses arising under the internal revenue laws of the United States unless the indictment is found or the information instituted within three years next after the commission of the offense, except that the period of limitation shall be six years—

Sec. 3748. (a) (1) for offenses involving the defrauding or attempting to defraud the United States or any agency thereof, whether by conspiracy or not, and in any manner,

Sec. 3748. (a) (2) for the offense of willfully attempting in any manner to evade or defeat any tax or the payment thereof, and

Sec. 3748. (a) (3) for the offense of willfully aiding or assisting in, or procuring, counseling, or advising, the preparation or presentation under, or in connection with any matter arising under, the internal revenue laws, of a false or fraudulent return, affidavit, claim, or document (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).

For offenses arising under section 37 of the Criminal Code, March 4, 1909, 35 Stat. 1096 (U. S. C., Title 18, § 88), where the object of the conspiracy is to attempt in any manner to evade or defeat any tax or the payment thereof, the period of limitation shall also be six years. The time during which the person committing any of the offenses above mentioned is absent from the district wherein the same is committed shall not be taken as any part of the time limited by law for the commencement of such proceedings. Where a complaint is instituted before a commissioner of the United States within the period above limited, the time shall be extended until the discharge of the grand jury at its next session within the district.

Sec. 3748. (b) Scope of limitations.-Subsection (a) of this section shall apply to offenses whenever committed; except that it shall not apply to offenses the prosecution of which was barred before June 6, 1932.

Sec. 3748. (c) Civil suits.—

For period of limitation in respect ofSuits for fines, penalties, and forfeitures, see section 1047 of the Revised Statutes (U. S. C., Title 28, § 791).

Suits for erroneous refunds, see section 3746.

Sec. 3760. Closing agreements.

Sec. 3760. (a) Authorization.-The Commissioner (or any officer or employee of the Bureau of Internal

Revenue, including the field service, authorized in writing by the Commissioner) is authorized to enter into an agreement in writing with any person relating to the liability of such person (or of the person

or estate for whom he acts) in respect of any internal revenue tax for any taxable period.

Sec. 3760. (b) Finality.-If such agreement is approved by the Secretary, the Under Secretary, or an Assistant Secretary, within such time as may be stated in such agreement, or later agreed to, such agreement shall be final and conclusive, and, except upon a showing of fraud or malfeasance, or misrepresentation of a material fact

Sec. 3760. (b) (1) The case shall not be reopened as to the matters agreed upon or the agreement modified, by any officer, employee, or agent of the United States, and

Sec. 3760. (b) (2) In any suit, action, or proceeding, such agreement, or any determination, assessment, collection, payment, abatement, refund, or credit made in accordance therewith, shall not be annulled, modified, set aside, or disregarded.

Sec. 3761. Compromises.

Sec. 3761. (a) Authorization.-The Commissioner, with the approval of the Secretary, or of the Under Secretary of the Treasury, or of an Assistant Secretary of the Treasury, may compromise any civil or criminal case arising under the internal revenue laws prior to reference to the Department of Justice for prosecution or defense; and the Attorney General may compromise any such case after reference to the Department of Justice for prosecution or defense.

Sec. 3761. (b) Record.-Whenever a compromise is made by the Commissioner in any case there shall be placed on file in the office of the Commissioner the opinion of the General Counsel for the Depart

Sec. 3770. Authority to make abatements, credits, and refunds.

Sec. 3770. (a) To taxpayers.—

Sec. 3770. (a) (1) Assessments and collections generally. Except as otherwise provided by law in the case of income, war-profits, excess-profits, estate, and gift taxes, the Commissioner, subject to regulations prescribed by the Secretary, is authorized to remit, refund, and pay back all taxes erroneously or illegally assessed or collected, all penalties collected without authority, and all taxes that appear to be unjustly assessed or excessive in amount, or in any manner wrongfully collected.

Sec. 3770 (a) (1), I. R. C., supra, amended by Sec. 508 (b), Second R. A. of 1940, approved Oct. 8, 1940, by adding language in italics.

Sec. 3770. (a) (2) Assessments and collections after limitation period.-Any tax (or any interest, penalty, additional amount, or addition to such tax) assessed or paid after the expiration of the period of limitation properly applicable thereto shall be considered an overpayment and shall be credited or refunded to the taxpayer if claim therefor is filed within the period of limitation for filing such claim.

ment of the Treasury, or of the officer acting as such, with his reasons therefor, with a statement of—

Sec. 3761. (b) (1) The amount of tax assessed,

Sec. 3761. (b) (2) The amount of additional tax or penalty imposed by law in consequence of the neglect or delinquency of the person against whom the tax is assessed, and

Sec. 3761. (b) (3) The amount actually paid in accordance with the terms of the compromise.

Sec. 3761. (c) Cross reference.—

For compromises after judgment, see R. S. 3469 (U. S. C., Title 31, § 194).

Sec. 3762. Penalties.

Any person who, in connection with any compromise under section 3761, or offer of such compromise, or in connection with any closing agreement under section 3760, or offer to enter into any such agreement, willfully

Sec. 3762. (a) Concealment of property.—Conceals from any officer or employee of the United States any property belonging to the estate of a taxpayer or other person liable in respect of the tax, or

Sec. 3762. (b) Withholding, falsifying, and destroying records.-Receives, destroys, mutilates, or falsifies any book, document, or record, or makes under oath any false statement, relating to the estate or financial condition of the taxpayer or other person liable in respect of the tax

Shall, upon conviction thereof, be fined not more than $10,000 or imprisoned for not more than one year, or both.

CREDITS, AND REFUNDS

Sec. 3770. (a) (3) Date of allowance.-Where the Commissioner has signed a schedule of overassessments in respect of any internal revenue tax imposed by this title, the Revenue Act of 1932, or any prior revenue Act, the date on which he first signed such schedule (if after May 28, 1928) shall be considered as the date of allowance of refund or credit in respect of such tax.

Sec. 3770. (a) (4) Delegation of authority to collectors to make refunds.-The Commissioner is authorized to delegate, with the approval of the Secretary, to collectors any authority, duty, or function which the Commissioner is authorized or required to exercise or perform under paragraph (1), (2), or (3) of this subsection, or under section 322 or 1027, where the amount involved (exclusive of interest, penalties, additions to the tax, and additional amounts) does not exceed $1,000.

Sec. 3770. (a) (4) (5) Cross references.

For limitations on refunds and credits in case ofIncome tax, see section 322.

Estate tax, see sections 910, 911, and 912.
Gift tax, see section 1027.

Miscellaneous taxes, see section 3313.

Sec. 3770 (a), I. R. C., supra, amended by Sec. 4 (c), Current Tax Payment Act of 1943, approved June 9, 1943, by adding subsection (4) and by changing old subsection (4) to subsection (5).

Sec. 3770. (b) To collectors and officers.-The Commissioner, subject to regulations prescribed by the Secretary, is authorized to repay

Sec. 3770. (b) (1) Collections recovered.—To any collector or deputy collector the full amount of such sums of money as may be recovered against him in any court, for any internal revenue taxes collected by him, with the cost and expense of suit; also

Sec. 3770. (b) (2) Damages and costs. All damages and costs recovered against any collector, deputy collector, agent, or inspector, in any suit brought against him by reason of anything done in the due performance of his official duty.

Sec. 3771. Interest on overpayments.

Sec. 3771. (a) Rate.-Interest shall be allowed and paid upon any overpayment in respect of any internal revenue tax at the rate of 6 per centum per

annum.

Sec. 3771. (b) Period.-—Such interest shall be allowed and paid as follows:

Sec. 3771. (b) (1) Credits.-In the case of a credit, from the date of the overpayment 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 of a tax imposed by the Revenue Act of 1921, 42 Stat. 227, or any subsequent Revenue Act, then to the date of the assessment of that amount.

Sec. 3771. (b) (2) Refunds.-In the case of a refund, from the date of the overpayment to a date preceding the date of the refund check by not more than thirty days, such date to be determined by the Commissioner, whether or not such refund check is accepted by the taxpayer after tender of such check to the taxpayer. The acceptance of such check shall be without prejudice to any right of the taxpayer to claim any additional overpayment and interest thereon.

Sec. 3771. (c) Additional assessment defined.As used in this section the term "additional assessment" means a further assessment for a tax of the same character previously paid in part, and includes the assessment of a deficiency of any income or estate tax imposed by the Revenue Act of 1924, 43 Stat. 253, or by any subsequent Revenue Act.

34 Sec. 3771, I. R. C., supra, was amended by Sec. 2, H. R. 3363, approved Nov. -, 1943, by inserting at the end thereof the following new paragraph:

Sec. 3771. (g) Claims based upon relief under section 722.—If any part of an overpayment for a taxable year beginning prior to January 1, 1942, is determined by the Commissioner to be attributable to the final determination of an application for relief or benefit under section 722 for any taxable year, no

Sec. 3771. (d) Claims based on deduction for bad debts or worthless securities.-If credit or refund of any part of an overpayment would be barred under section 322 (b), except for paragraph (5) thereof, or under section 322 (d), except for clause (2) thereof, no interest shall be allowed or paid with respect to such part of the overpayment, for any period beginning after the expiration of the period of limitation provided in section 322 (b) (1) for filing claim for credit or refund of such part of the overpayment and ending at the expiration of six months after the date on which the claim was filed or, in case no claim was filed and the overpayment was found by the Board, ending at the time the petition was filed with the Board.

Sec. 3771, I. R. C., supra, amended by Sec. 124 (c), R. A. of 1942, by adding language in italics. Sec. 124 (d) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1938.

Sec. 3771. (e) Claims based on carry-back of loss or credit. If the Commissioner determines that any part of an overpayment is attributable to the inclusion in computing the net operating loss deduction for the taxable year of any part of the net operating loss for a succeeding taxable year or to the inclusion in computing the unused excess profits credit adjustment for the taxable year of any part of the unused excess profits credit for a succeeding taxable year, no interest shall be allowed or paid with respect to such part of the overpayment for any period before the filing of a claim for credit or refund of such part of the overpayment or the filing of a petition with the Board, whichever is earlier.

Sec. 3771, I. R. C., supra, amended by Sec. 153 (d), R. A. of 1942, by adding language in italics. Sec. 153 (e) of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1940.

Sec. 3771. (e) (f) Estimated tax and tax Tax withheld at source.-For date of payment in respect of estimated tax and of tax withheld at source under Part II of Subchapter D, on wages, see Section 322 (e).

Sec. 3771 (e), I. R. C., (later changed to (f) ),
added to I. R. C. by Sec. 172 (f), R. A. of 1942.
Sec. 172 (g) of said Act provides that said
amendment shall be applicable to
all wages
(as defined in Part II of Subchapter D) paid
on or after said date.

Sec. 3771 (e), I. R. C., supra, amended by Sec.
4 (e), Current Tax Payment Act of 1943,
approved June 9, 1943, by changing "e" to "f,"
by adding language in underlined bold faced
type, by omitting language in stricken through
type, and by adding language in underlined
italics.

For subsequent amendment of Sec. 3771, see fn. 34.

interest shall be allowed or paid with respect to such part of the overpayment. If any part of an overpayment for a taxable year beginning after December 31, 1941, is determined by the Commissioner to be attributable to the final determination of an application for relief or benefit under section 722 for any taxable year, no interest shall be allowed or paid with respect to such part of the overpayment for any period prior to one year after the filing of such application, or September 16, 1945, whichever is the later.

Sec. 3772. Suits for refund.
Sec. 3772. (a) Limitations.—

Sec. 3772. (a) (1) Claim.-No suit or proceeding shall be maintained in any court for the recovery of any internal revenue tax alleged to have been erroneously or illegally assessed or collected, or of any penalty claimed to have been collected without authority, or of any sum alleged to have been excessive or in any manner wrongfully collected until a claim for refund or credit has been duly filed with the Commissioner, according to the provisions of law in that regard, and the regulations of the Secretary established in pursuance thereof.

Sec. 3772. (a) (2) Time.-No such suit or proceeding shall be begun before the expiration of six months from the date of filing such claim unless the Commissioner renders a decision thereon within that time, nor after the expiration of two years from the date of mailing by registered mail by the Commissioner to the taxpayer of a notice of the disallowance of the part of the claim to which such suit or proceeding relates.

Sec. 3772. (a) (3) Reconsideration after mailing of notice.-Any consideration, reconsideration, or action by the Commissioner with respect to such claim following the mailing of a notice by registered mail of disallowance shall not operate to extend the period within which suit may be begun. This paragraph shall not operate (A) to bar a suit or proceeding in respect of a claim reopened prior to June 22, 1936, if such suit or proceeding was not barred under the law in effect prior to that date, or (B) to prevent the suspension of the statute of limitations for filing suit under section 3774 (b) (2).

Sec. 3772. (b) Protest or duress.-Such suit or proceeding may be maintained, whether or not such tax, penalty, or sum has been paid under protest or duress.

Sec. 3772. (c) Cross references.-

For provisions relating to claims for refund or credit filed with the Commissioner in respect of

Income tax, see section 322.

Estate tax, see sections 910, 911, and 912.
Gift tax, see section 1027.

Sec. 3772. (d) Suits against collector a bar.A suit against a collector (or former collector) or his personal representative for the recovery of any internal revenue tax alleged to have been erroneously or illegally assessed or collected, or of any penalty claimed to have been collected without authority, or of any sum alleged to have been excessive or in any manner wrongfully collected shall be treated as if the United States had been a party to such suit in applying the doctrine of res judicata in all suits instituted after June 15, 1942, in respect of any internal revenue tax, and in all proceedings in the Board and on review of decisions of the Board where the petition to the Board was filed after such date.

Sec. 3772, I. R. C., amended by Sec. 503, R. A. of 1942, approved Oct. 21, 1942, by adding language in italics.

Sec. 3773. Interest on judgments.

For interest on judgments, see section 177
of the Judicial Code as amended by act of
May 29, 1928, c. 852, § 615, 45 Stat. 877 (U. S.
C., Title 28, § 284).

Sec. 3774. Refunds after periods of limitation. A refund of any portion of an internal revenue tax (or any interest, penalty, additional amount, or addition to such tax) shall be considered erroneous—

Sec. 3774. (a) Expiration of period for filing claim. If made after the expiration of the period of limitation for filing claim therefor, unless within such period claim was filed; or

Sec. 3774. (b) Disallowance of claim and expiration of period for filing suit.-In the case of a claim filed within the proper time and disallowed by the Commissioner if the refund was made after the expiration of the period of limitation for filing suit, unless

Sec. 3774. (b) (1) within such period suit was begun by the taxpayer, or

Sec. 3774. (b) (2) within such period, the taxpayer and the Commissioner agreed in writing to suspend the running of the statute of limitations for filing suit from the date of the agreement to the date of final decision in one or more named cases then pending before the Board of Tax Appeals or the courts. If such agreement has been entered into, the running of such statute of limitations shall be suspended in accordance with the terms of the agree ment.

Sec. 3774. (c) Cross reference.

For procedure by the United States to recover erroneous refunds, see section 3746. Sec. 3775. Credits after periods of limitation. Sec. 3775. (a) Period against United States.Any credit against a liability in respect of any taxable year shall be void if any payment in respect of such liability would be considered an overpayment under section 3770 (a) (2).

Sec. 3775. (b) Period against taxpayer.-A credit of an overpayment in respect of any tax shall be void if a refund of such overpayment would be considered erroneous under section 3774.

Sec. 3776. Reports to Congress of refunds in excess of $500.

The Commissioner shall make report to Congress, at the beginning of each regular session by internal revenue districts and alphabetically arranged, of all disbursements in excess of $500 under section 3770 (a) (1) and (b).

Sec. 3777. Reports of refunds and credits in excess of $75,000.

Sec. 3777. (a) By Commissioner to Joint Committee. No refund or credit of any income, war-profits, excess-profits, estate, or gift tax in excess of $75,000 shall be made until after the expiration of thirty days from the date upon which a report giving the name of the person to whom the refund or credit is