to be made, the amount of such refund or credit, and a summary of the facts and the decision of the Commissioner is submitted to the Joint Committee on Internal Revenue Taxation.

Sec. 3777. (b) By Joint Committee to Congress.— A report to Congress shall be made annually by such committee of such refunds and credits, including

the names of all persons and corporations to whom amounts are credited or payments are made, together with the amounts credited or paid to each.

Sec. 3778. Cross reference.

For remission of tax against insolvent banks, see section 3798.

Sec. 3790. Prohibition of administrative review of Commissioner's decisions.

In the absence of fraud or mistake in mathematical calculation, the findings of facts in and the decision of the Commissioner upon (or in case the Secretary is authorized to approve the same, then after such approval) the merits of any claim presented under or authorized by the internal revenue laws shall not, except as provided in chapter 5, be subject to review by any other administrative or accounting officer, employee, or agent of the United States. In the absence of fraud or mistake in mathematical calculation, the allowance or nonallowance by the Commissioner, of interest on any credit or refund under the internal revenue laws shall not, except as provided in Chapter 5, be subject to review by any other administrative or accounting officer, employee, or agent of the United States.

Sec. 3790, I. R. C., supra, amended by Sec. 4
(f), Current Tax Payment Act of 1943, approved
June 9, 1943, by adding language in italics.
Sec. 3791. Rules and regulations.
Sec. 3791. (a) Authorization.—

Sec. 3791. (a) (1) In general.-Except as provided in section 1928 (a), Cotton Futures, section 2599, Marihuana, section 2559, Narcotics, section 3176, Liquor, and section 1805, Silver, the Commissioner, with the approval of the Secretary, shall prescribe and publish all needful rules and regulations for the enforcement of this title.

Sec. 3791. (a) (2) In case of change in law. The Commissioner may make all such regulations, not otherwise provided for, as may have become necessary by reason of any alteration of law in relation to internal revenue.

Sec. 3791. (b) Retroactivity of regulations or rulings. The Secretary, or the Commissioner with the approval of the Secretary, may prescribe the extent, if any, to which any ruling, regulation, or Treasury Decision, relating to the internal revenue laws, shall be applied without retroactive effect.

Sec. 3792. Expenses of detection and punishment of frauds.

The Commissioner, with the approval of the Secretary, is authorized to pay such sums, not exceeding in the aggregate the sum appropriated therefor, as he may deem necessary for detecting and bringing to trial and punishment persons guilty of violating the internal revenue laws, or conniving at the same, in cases where such expenses are not otherwise provided for by law.

Sec. 3793. (b) (1) Assistance in preparation or presentation.-Any person who willfully aids or assists in, or procures, counsels, or advises 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, 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.

Sec. 3793. (b) (2) Person defined.-The term "person" as used in this subsection 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.

Sec. 3793. (c) Cross references.—

Failure to surrender property subject to distraint, 3710 (b);

Fraud in connection with closing agreements and compromises, 3763.

Sec. 3793. (c) (2) Forfeitures.

For other forfeitures under this subtitle, see the following:

Sales or removals in fraud of internal revenue laws, section 3720 (a);

Sales or removals with design to avoid payment of taxes, section 3720 (a).

Sec. 3794. Interest on delinquent taxes. Notwithstanding any provision of law to the contrary, interest accruing during any period of time after August 30, 1935, upon any internal-revenue tax (including amounts assessed or collected as a part thereof) not paid when due, shall be at the rate of 6 per centum per annum.

Sec. 3795. Administration of real estate acquired by the United States.

Sec. 3795. (a) Person charged with.-The Commissioner shall have charge of all real estate which is or shall become the property of the United States by judgment of forfeiture under the internal revenue laws, or which has been or shall be assigned, set off, or conveyed by purchase or otherwise to the United States in payment of debts or penalties arising under the laws relating to internal revenue, or which has been or shall be vested in the United States by mortgage or other security for the payment of such debts, and of all trusts created for the use of the United States in payment of such debts due them.

Sec. 3795. (b) Sale.-The Commissioner, with the approval of the Secretary, may, at public vendue, and upon not less than twenty days' notice, sell and dispose of all real estate owned or held by the United States as aforesaid.

Sec. 3795. (c) Lease.-Until such sale the Commissioner, with the approval of the Secretary, may lease such real estate owned as aforesaid on such terms and for such period as they shall deem expedient.

Sec. 3795. (d) Release to debtor.—In cases where real estate has or may become the property of the United States by conveyance or otherwise, in payment of or as security for a debt arising under the laws relating to internal revenue, and such debt shall have been paid, together with the interest thereon, at the rate of 1 per centum per month, to the United States, within two years from the date of the acquisition of such real estate, it shall be lawful for the Commissioner, with the approval of the Secretary, to release by deed, or otherwise convey such real estate to the debtor from whom it was taken, or to his heirs or other legal representatives.

Sec. 3796. Purchase of stationery.

The purchase of stationery for the internal revenue service shall be made under the direction of the Secretary as in the case of other branches of the public service under the Treasury Department.

Sec. 3797. Definitions.

Sec. 3797. (a) When used in this title, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof

Sec. 3797. (a) (1) Person.-The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, company, or corporation.

Sec. 3797. (a) (2) Partnership and partner.-The term "partnership" includes a syndicate, group, pool, joint venture, or other unincorporated organization, through or by means of which any business, financial operation, or venture is carried on, and which is not, within the meaning of this title, a trust or estate or a corporation; and the term "partner" includes a member in such a syndicate, group, pool, joint venture, or organization.

Sec. 3797. (a) (3) Corporation.-The term "corporation" includes associations, joint-stock companies, and insurance companies.

Sec. 3797. (a) (4) Domestic.-The term "domestic" when applied to a corporation or a partnership means created or organized in the United States or under the law of the United States or of any State or Territory.

Sec. 3797. (a) (5) Foreign.-The term "foreign" when applied to a corporation or partnership means a corporation or partnership which is not domestic.

Sec. 3797. (a) (6) Fiduciary.-The term "fiduciary" means a guardian, trustee, executor, administrator, receiver, conservator, or any person acting in any fiduciary capacity for any person.

Sec. 3797. (a) (7) Stock.-The term "stock" includes the share in an association, joint-stock company, or insurance company.

Sec. 3797. (a) (8) Shareholder.-The term "shareholder" includes a member in an association, jointstock company, or insurance company.

Sec. 3797. (a) (9) United States. The term "United States" when used in a geographical sense includes only the States, the Territories of Alaska and Hawaii, and District of Columbia.

Sec. 3797. (a) (10) State.-The word "State" shall be construed to include the Territories and the District of Columbia, where such construction is necessary to carry out provisions of this title.

Sec. 3797. (a) (11) Secretary.-The term "Secretary" means the Secretary of the Treasury.

Sec. 3797. (a) (12) Commissioner.-The term "Commissioner" means the Commissioner of Internal Revenue.

Sec. 3797. (a) (13) Collector.-The term "collector" means collector of internal revenue.

Sec. 3797. (a) (14) Taxpayer.-The term "taxpayer" means any person subject to a tax imposed by this title.

Sec. 3797. (a) (15) Military or naval forces of the United States.-The term "military or naval forces of the United States" includes the Marine Corps, the Coast Guard, the Army Nurse Corps, Female, the Women's Army Auxiliary Corps, and the Navy Nurse Corps, Female, and the Women's Reserve branch of the Naval Reserve.

Sec. 3797 (a) (15), I. R. C., amended by Sec. 511, R. A. of 1942, approved Oct. 21, 1942, by omitting language in stricken through type and adding language in italics.

Sec. 3797. (a) (16) Withholding agent.-The term "withholding agent" means any person required to deduct and withhold any tax under the provisions of section 143 or 144.

Sec. 3797. (a) (17) Husband and wife.-As used in sections 22 (k), 23 (u), 25 (b) (2) (A), and 171, and the last sentence of section 401 (a) (2), if the husband and wife therein referred to are divorced, wherever appropriate to the meaning of such sections, the term "wife" shall be read "former wife" and the term "husband" shall be read "former husband"; and, if the payments described in such sections are made by or on behalf of the wife or former wife to the husband or former husband instead of vice versa, wherever appropriate to the meaning of such sections, the term "husband" shall be read "wife" and the term "wife" shall be read "husband".

Sec. 3797, I. R. C., amended by Sec. 120 (f), R. A. of 1942, by adding language in italics. Sec. 120 (g) of said Act provides that said amendment shall be applicable only with respect to taxable years beginning after December 31, 1941; except that if the first taxable year beginning after December 31, 1941, of the husband does not begin on the same day as the first taxable year beginning after December 31, 1941, of the wife, such amendment shall first become applicable in the case of the husband on the first day of the wife's first taxable year beginning after December 31, 1941, regardless of the taxable year of the husband in which such day falls.

Sec. 3797. (b) Includes and including.—The terms "includes" and "including" when used in a definition contained in this title shall not be deemed to exclude other things otherwise within the meaning of the term defined.

Sec. 3797. (c) Cross references.

For other definitions, see the following: Singular as including plural, R. S. 1 (U. S. C., Title 1, § 1).

Plural as including singular, R. S. 1 (U. S. C., Title 1, § 1).

Masculine as including feminine, R. S. 1 (U. C., Title 1, § 1).

Officer, R. S. 1 (U. S. C., Title 1, § 1).

Oath as including affirmation, R. S. 1 (U. S. C., Title 1, § 1).

Company or association as including successors and assigns, R. S. 5 (U. S. C., Title 1, § 5). County as including parish, R. S. 2 (U. S. C., Title 1, § 2).

Vessel as including all means of water transportation, R. S. 3 (U. S. C., Title 1, § 3).

Vehicle as including all means of land transportation, R. S. 4 (U. S. C., Title 1, § 4).

Sec. 3798. Exemption of insolvent banks from tax.

Sec. 3798. (a) Whenever and after any bank or trust company, a substantial portion of the business of which consists of receiving deposits and making loans and discounts, has ceased to do business by reason of insolvency or bankruptcy, no tax shall be assessed or collected, or paid into the Treasury of the United States on account of such bank, or trust company, which shall diminish the assets thereof necessary for the full payment of all its depositors; and such tax shall be abated from such national banks as are found by the Comptroller of the Currency to be insolvent; and the Commissioner of Internal Revenue, when the facts shall appear to him, is authorized to remit so much of the said tax against any such insolvent banks and trust companies organized under State law as shall be found to affect the claims of their depositors.

Sec. 3798. (b) Whenever any bank or trust company, a substantial portion of the business of which consists of receiving deposits and making loans and discounts, has been released or discharged from its liability to its depositors for any part of their claims against it, and such depositors have accepted, in lieu thereof, a lien upon subsequent earnings of such bank or trust company, or claims against assets segregated by such bank or trust company or against assets transferred from it to an individual or corporate trustee or agent, no tax shall be assessed or collected, or paid into the Treasury of the United States on account of such bank, or trust company, such individual or corporate trustee or such agent, which shall diminish the assets thereof which are available for the payment of such depositor claims and which are necessary for the full payment thereof.

Sec. 406 (b), R. A. of 1939, reads: "The term 'agent' as used in 3798 (b) of the Internal Revenue Code shall be deemed to include a corporation acting as a liquidating agent." Sec. 406 (c), R. A. of 1939, makes amendment effective May 28, 1938.

See. 3798. (e) Any such tax so collected shall be deemed to be erroneously collected, and shall be re funded subject to all provisions and limitations of law, so far as applicable, relating to the refunding of taxes, but tax so abated or refunded after May 28, 1938 shall be reassessed whenever it shall appear that payment of the tax will not diminish the assets as aforesaid. The running of the statute of limitations on the making of assessment and collection shall be suspended during, and for ninety days beyond, the period for which, pursuant to this section, assess ment or collection may not be made, and a tax which has been abated may be reassessed and collected dur ing the time within which, had there been no abate ment, collection might have been made.

Sec. 3798. (c) (1) Any such tax collected, whether collected, before, on, or after the date of enactment of the Revenue Act of 1938, shall be deemed to be erroneously collected, and shall be refunded subject to all provisions and limitations of law, so far as applicable, relating to the refunding of taxes.

Sec. 3798. (c) (2) Any tax, the assessment, collection, or payment of which is barred under subsection (a) of this section, or any such tax which has been abated or remitted after May 28, 1938, shall be assessed or reassessed whenever it shall appear that payment of the tax will not diminish the assets as aforesaid.

Sec. 3798. (c) (3) Any tax, the assessment, collection, or payment of which is barred under subsection (b) of this section or any such tax which has been refunded after May 28, 1938, shall be assessed or reassessed after full payment of such claims of depositors to the extent of the remaining assets segregated or transferred as described in subsection (b).

Sec. 3798. (c) (4) The running of the statute of limitations on the making of assessment and collection shall be suspended, during, and for ninety days beyond, the period for which, pursuant to this section, assessment or collection may not be made, and a tax may be reassessed as provided in paragraphs (2) and (3) of this subsection, and collected, during the time within which, had there been no abatement collection might have been made.

Sec. 3798, I. R. C., amended by Sec. 406, R. A. of 1939, by omitting language in stricken through type and adding language in italics. Sec. 406 (c) of said Act makes amendment effective May 28, 1938.

Sec. 3798. (d) This section shall not apply to any tax imposed by subchapter A or subchapter C of chapter 9.

Sec. 3799. Income from obligations and mortgages issued by joint-stock land banks.

Notwithstanding the provisions of section 26 of the Federal Farm Loan Act, 39 Stat. 380 (U. S. C., Title 12, § 931-3), as amended, in the case of mortgages made or obligations issued by any joint-stock land bank after May 28, 1938, all income, except interest, derived therefrom shall be included in gross income and shall not be exempt from Federal income taxation.

Sec. 3800. Jurisdiction of district courts to issue orders, processes, and judgments.

The district courts of the United States at the instance of the United States shall have such jurisdiction to make and issue, both in actions at law and suits in equity, writs and orders of injunction, and of ne exeat republica, orders appointing receivers, and such other orders and process, and to render such judgments and decrees, granting in proper cases both legal and equitable relief together, as may be necessary or appropriate for the enforcement of the internal revenue laws. The remedies hereby provided are in addition to and not exclusive of any and all other remedies of the United States in such courts or otherwise to enforce such laws.

Sec. 3801. Mitigation of effect of limitation and other provisions in income tax cases.

Sec. 3801. (a) Definitions.-For the purpose of this section

Sec. 3801. (a) (1) Determination.-The term “determination under the income tax laws" means(A) A closing agreement made under section 3760; (B) A decision by the Board of Tax Appeals or a judgment, decree, or other order by any court of competent jurisdiction, which has become final; or

(C) A final disposition by the Commissioner of a claim for refund. For the purposes of this section a claim for refund shall be deemed finally disposed of by the Commissioner

(i) as to items with respect to which the claim was allowed, upon the date of allowance of refund or credit or upon the date of mailing notice of disallowance (by reason of offsetting items) of the claim for refund, and

(ii) as to items with respect to which the claim was disallowed, in whole or in part, or as to items applied by the Commissioner in reduction of the refund or credit, upon expiration of the time for instituting suit with respect thereto (unless suit is instituted prior to the expiration of such time).

Such term shall not include any such agreement made, or decision, judgment, decree, or order which became final, or claim for refund finally disposed of, prior to August 27, 1938.

Sec. 3801. (a) (2) Taxpayer.-Notwithstanding the provisions of section 3797 the term "taxpayer" means any person subject to a tax under the applicable Revenue Act.

Sec. 3801. (a) (3) Related taxpayer.-The term "related taxpayer" means a taxpayer who, with the taxpayer with respect to whom a determination specified in subsection (b) (1), (2), (3), or (4) is made, stood, in the taxable year with respect to which the erroneous inclusion, exclusion, omission, allowance, or disallowance therein referred to was made, in one of the following relationships: (A) husband and wife; (B) grantor and fiduciary; (C) grantor and beneficiary; (D) fiduciary and beneficiary, legatee, or heir; (E) decedent and decedent's estate; or (F) partner.

Sec. 3801. (b) Circumstances of adjustment.— When a determination under the income tax laws

Sec. 3801. (b) (1) Requires the inclusion in gross income of an item which was erroneously included in the gross income of the taxpayer for another taxable year or in the gross income of a related taxpayer; or

Sec. 3801. (b) (2) Allows a deduction or credit which was erroneously allowed to the taxpayer for another taxable year or to a related taxpayer; or

Sec. 3801. (b) (3) Requires the exclusion from gross income of an item with respect to which tax was paid and which was erroneously excluded or omitted from the gross income of the taxpayer for another taxable year or from the gross income of a related taxpayer; or

Sec. 3801. (b) (4) Allows or disallows any of the additional deductions allowable in computing the net income of estates or trusts, or requires or denies any of the inclusions in the computation of net income of beneficiaries, heirs, or legatees, specified in section 162 (b) and (c) of chapter 1, and corresponding see

tions of prior revenue Acts, and the correlative inclusion or deduction, as the case may be, has been erroneously excluded, omitted, or included, or disallowed, omitted, or allowed, as the case may be, in respect of the related taxpayer; or

Sec. 3801. (b) (5) Determines the basis of property for depletion, exhaustion, wear and tear, or obsolescence, or for gain or loss on a sale or exchange, and in respect of any transaction upon which such basis depends there was an erroneous inclusion in or omission from the gross income of, or an erroneous recognition or nonrecognition of gain or loss to, the taxpayer or any person who acquired title to such property in such transaction and from whom mediately or immediately the taxpayer derived title subsequent to such transaction

and, on the date the determination becomes final, correction of the effect of the error is prevented by the operation (whether before, on, after May 28, 1938) of any provision of the internal-revenue laws other than this section and other than section 3761 (relating to compromises), then the effect of the error shall be corrected by an adjustment made under this section. Such adjustment shall be made only if there is adopted in the determination a position maintained by the Commissioner (in case the amount of the adjustment would be refunded or credited in the same manner as an overpayment under subsection (c)) or by the taxpayer with respect to whom the determination is made (in case the amount of the adjustment would be assessed and collected in the same manner as a deficiency under subsection (c)), which position is inconsistent with the erroneous inclusion, exclusion, omission, allowance, disallowance, recognition, or nonrecognition, as the case may be. In case the amount of the adjustment would be assessed and collected in the same manner as a deficiency, the adjustment shall not be made with respect to a related taxpayer unless he stands in such relationship to the taxpayer at the time the latter first maintains the inconsistent position in a return, claim for refund, or petition (or amended petition) to the Board of Tax Appeals for the taxable year with respect to which the determination is made, or if such position is not so maintained, then at the time of the determination.

Sec. 3801. (c) Method of adjustment.-The adjustment authorized in subsection (b) shall be made by assessing and collecting, or refunding or crediting, the amount thereof, to be ascertained as provided in subsection (d), in the same manner as if it were a deficiency determined by the Commissioner with respect to the taxpayer as to whom the error was made or an overpayment claimed by such taxpayer, as the case may be, for the taxable year with respect to which the error was made, and as if on the date of the determination specified in subsection (b) one year remained before the expiration of the periods of limitation upon assessment or filing claim for refund for such taxable year.

Sec. 3801. (d) Ascertainment of amount of adjustment. In computing the amount of an adjustment under this section there shall first be ascertained the tax previously determined for the taxable

year with respect to which the error was made. The amount of the tax previously determined shall be (1) the tax shown by the taxpayer, with respect to whom the error was made, upon his return for such taxable year, increased by the amounts previously assessed (or collected without assessment) as deficiencies, and decreased by the amounts previously abated, credited, refunded, or otherwise repaid in respect of such tax; or (2) if no amount was shown as the tax by such taxpayer upon his return, or if no return was made by such taxpayer, then the amounts previously assessed (or collected without assessment) as deficiencies, but such amounts previously assessed, or collected without assessment, shall be decreased by the amounts previously abated, credited, refunded, or otherwise repaid in respect of such tax. There shall then be ascertained the increase or decrease in the tax previously determined which results solely from the correct exclusion, inclusion, allowance, disallowance, recognition, or nonrecognition, of the item, inclusion, deduction, credit, gain, or loss, which was the subject of the error. The amount so ascertained (together with any amounts wrongfully collected, as additions to the tax or interest, as a result of such error) shall be the amount of the adjustment under this section.

Sec. 3801. (e) Adjustment unaffected by other items, etc. The amount to be assessed and collected in the same manner as a deficiency, or to be refunded or credited in the same manner as an overpayment, under this section, shall not be diminished by any credit or set-off based upon any item, inclusion, deduction, credit, exemption, gain, or loss other than the one which was the subject of the error. Such amount, if paid, shall not be recovered by a claim or suit for refund or suit for erroneous refund based upon any item, inclusion, deduction, credit, exemption, gain, or loss other than the one which was the subject of the error.

Sec. 3801. (f) No adjustment for years prior to 1932. No adjustment shall be made under this section in respect of any taxable year beginning prior to January 1, 1932.

Sec. 3802 3803. Separability clause.

If any provision of this title, or the application thereof to any person or circumstances, is held invalid, the remainder of the title, and the application of such provisions to other persons or circumstances, shall not be affected thereby.

Sec. 3802, renumbered Sec. 3803, by Act of May 9, 1941.

Sec. 3804. Time for performing certain acts postponed by reason of war.

Sec. 3804. (a) Individuals.-The period of time after December 6, 1941, during which an individual is continuously outside the Americas (if such period is longer than ninety days), and the next ninety days thereafter, shall be disregarded in determining, under the internal revenue laws, in respect of any tax liability (including any interest, penalty, additional amount, or addition to the tax) of such individual