Taxable Years SUBCHAPTER C-EXCESS PROFITS Taxable Years SUBCHAPTER C-EXCESS PROFITS Sec. 650. Method of collection. Sec. 650. Method of collection. If the amount of profit required If the amount of profit required to be paid into the Treasury under to be paid into the Treasury under section 3 of the Act of March 27, section 3 of the Act of March 27, 1934, c. 95, 48 Stat. 505, as 1934, c. 95, 48 Stat. 505, as amended by the Act of June 25, amended by the Act of June 25, 1936, c. 812, 49 Stat. 1926 (U. S. 1936, c. 812, 49 Stat. 1926 (U. S. C., Supp. III, Title 34, § 496), with C., Supp. III, Title 34, § 496), with respect to contracts completed respect to contracts completed within income-tax taxable years within income-tax taxable years beginning after December 31, beginning after December 31, 1938, is not voluntarily paid, the 1938, is not voluntarily paid, the Secretary shall collect the same Secretary shall collect the same under the usual methods employed under the internal revenue laws to collect federal income taxes. Sec. 651. Laws applicable. under the usual methods employed Sec. 651. Laws applicable. All provisions of law (including All provisions of law (including penalties) applicable with respect penalties) applicable with respect to the taxes imposed by Title I of to the taxes imposed by Title I of the Revenue Act of 1934, 48 Stat. the Revenue Act of 1934, 48 Stat. 683, and not inconsistent with sec- 683, and not inconsistent with section 3 of said Act of March 27, tion 3 of said Act of March 27, 1934, shall be applicable with re- 1934, shall be applicable with respect to the assessment, collection, spect to the assessment, collection, or payment of excess profits to the or payment of excess profits to the Treasury as provided by section Treasury as provided by section 650, and to refunds by the Treas- 650, and to refunds by the Treasury of overpayments of excess ury of overpayments of excess profits into the Treasury. profits into the Treasury. SUBCHAPTER D-UNJUST ENRICH- SUBCHAPTER D-UNJUST ENRICH MENT Sec. 700. Tax on net income from certain sources MENT Sec. 700. Tax on net income from certain sources. Sec. 700. (a) The following Sec. 700. (a) The following taxes shall be levied, collected, and taxes shall be levied, collected, and paid for each taxable year (in ad- paid for each taxable year (in addition to any other tax on net in-dition to any other tax on net income), upon the net income of come), upon the net income of every person which arises from the every person which arises from the sources specified below: sources specified below: Sec. 700. (a) (1) A tax equal to Sec. 700. (a) (1) A tax equal to 80 per centum of that portion of 80 per centum of that portion of the net income from the sale of the net income from the sale of articles with respect to which a articles with respect to which a Federal excise tax was imposed on Federal excise tax was imposed on such person but not paid which is such person but not paid which is attributable to shifting to others attributable to shifting to others to any extent the burden of such to any extent the burden of such Federal excise tax and which does Federal excise tax and which does not exceed such person's net income for the entire taxable year from the sale of articles with respect to which such Federal excise tax was imposed. Sec. 700. (a) (2) A tax equal to 80 per centum of the net income from reimbursement received by not exceed such person's net in- Sec. 700. (a) (2) A tax equal to 80 per centum of the net income from reimbursement received by Taxable Years Beginning before 1939 Taxable Years such person from his vendors of amounts representing Federal excise-tax burdens included in prices paid by such person to such vendors, to the extent that such net income does not exceed the amount of such Federal excise-tax burden which such person in turn shifted to his vendees. such person from his vendors of such person from his vendors of Sec. 700. (a) (3) A tax equal to Sec. 700. (a) (3) A tax equal to Sec. 700. (a) (3) A tax equal to 80 per centum of the net income 80 per centum of the net income 80 per centum of the net income from refunds or credits to such from refunds or credits to such from refunds or credits to such person from the United States of person from the United States of person from the United States of Federal excise taxes erroneously Federal excise taxes erroneously Federal excise taxes erroneously or illegally collected with respect or illegally collected with respect or illegally collected with respect to any articles, to the extent that to any articles, to the extent that to any articles, to the extent that such net income does not exceed such net income does not exceed such net income does not exceed the amount of the burden of such Federal excise taxes with respect to such articles which such person shifted to others. the amount of the burden of such the amount of the burden of such Federal excise taxes with respect to such articles which such person shifted to others. not Sec. 700. (b) The net income Sec. 700. (b) The net income Sec. 700. (b) The net income (specified in subsection (a) (1)) (specified in subsection (a) (1)) (specified in subsection (a) (1)) from the sale of articles with re- from the sale of articles with re- from the sale of articles with respect to which the Federal excise spect to which the Federal excise spect to which the Federal excise tax was not paid, and the net in- tax was not paid, and the net in- tax was not paid, and the net income specified in subsection (a) come specified in subsection (a) come specified in subsection (a) (2) or (3), shall not include the (2) or (3), shall not include the (2) or (3), shall not include the net income from the sale of any net income from the sale of any net income from the sale of any article, from reimbursement with article, from reimbursement with article, from reimbursement with respect to any article, or from re- respect to any article, or from re- respect to any article, or from refund or credit of Federal excise fund or credit of Federal excise fund or credit of Federal excise tax with respect to any article tax with respect to any article tax with respect to any article (1) if such article (or the articles (1) if such article (or the articles (1) if such article (or the articles processed therefrom) were not processed therefrom) were not processed therefrom) were sold by the taxpayer on or before sold by the taxpayer on or before sold by the taxpayer on or before the date of the termination of the the date of the termination of the the date of the termination of the Federal excise tax; (2) if the tax- Federal excise tax; (2) if the tax- Federal excise tax; (2) if the taxpayer made a tax adjustment with payer made a tax adjustment with payer made a tax adjustment with respect to such article (or the ar- respect to such article (or the ar- respect to such article (or the articles processed therefrom) with ticles processed therefrom) with ticles processed therefrom) with his vendee; or (3) if under the his vendee; or (3) if under the his vendee; or (3) if under the terms of any statute the taxpayer terms of any statute the taxpayer terms of any statute the taxpayer Iwould have been entitled to a re- would have been entitled to a re- would have been entitled to a refund from the United States of fund from the United States of fund from the United States of the Federal excise tax with respect the Federal excise tax with respect the Federal excise tax with respect to the article otherwise than as an to the article otherwise than as an to the article otherwise than as an erroneous or illegal collection (as- erroneous or illegal collection (as- erroneous or illegal collection (assuming, in case the tax was not suming, in case the tax was not suming, in case the tax was not paid, that it had been paid). paid, that it had been paid). paid, that it had been paid). Sec. 700. (c) The net income from the sales specified in subsection (a) (1) shall be computed as follows: Sec. 700. (c) The net income from the sales specified in subsection (a) (1) shall be computed as follows: Sec. 700. (c) (1) From the gross Sec. 700. (c) (1) From the gross income from such sales there shall income from such sales there shall be deducted the allocable portion be deducted the allocable portion of the deductions from gross income for the taxable year which are allowable under the applicable Revenue Act; or of the deductions from gross in- Taxable Years such person from his vendors of amounts representing Federal excise-tax burdens included in prices paid by such person to such vendors, to the extent that such net income does not exceed the amount of such Federal excise-tax burden which such person in turn shifted to his vendees. Taxable Years such person from his vendors of Sec. 700. (a) (3) A tax equal to Sec. 700. (a) (3) A tax equal to 80 per centum of the net income 80 per centum of the net income from refunds or credits to such from refunds or credits to such person from the United States of person from the United States of Federal excise taxes erroneously Federal excise taxes erroneously or illegally collected with respect or illegally collected with respect to any articles, to the extent that to any articles, to the extent that such net income does not exceed such net income does not exceed the amount of the burden of such the amount of the burden of such Federal excise taxes with respect Federal excise taxes with respect to such articles which such person to such articles which such person shifted to others. shifted to others. Sec. 700. (b) The net income Sec. 700. (b) The net income (specified in subsection (a) (1)) (specified in subsection (a) (1)) from the sale of articles with re- from the sale of articles with respect to which the Federal excise spect to which the Federal excise tax was not paid, and the net in- tax was not paid, and the net income specified in subsection (a) come specified in subsection (a) (2) or (3), shall not include the (2) or (3), shall not include the net income from the sale of any net income from the sale of any article, from reimbursement with article, from reimbursement with respect to any article, or from re- respect to any article, or from refund or credit of Federal excise fund or credit of Federal excise tax with respect to any article tax with respect to any article (1) if such article (or the articles (1) if such article (or the articles processed therefrom) were not processed therefrom) were not sold by the taxpayer on or before sold by the taxpayer on or before the date of the termination of the the date of the termination of the Federal excise tax; (2) if the tax- Federal excise tax; (2) if the taxpayer made a tax adjustment with payer made a tax adjustment with respect to such article (or the ar- respect to such article (or the articles processed therefrom) with ticles processed therefrom) with his vendee; or (3) if under the his vendee; or (3) if under the terms of any statute the taxpayer terms of any statute the taxpayer would have been entitled to a refund from the United States of the Federal excise tax with respect to the article otherwise than as an erroneous or illegal collection (assuming, in case the tax was not paid, that it had been paid). Sec. 700. (c) The net income from the sales specified in subsection (a) (1) shall be computed as follows: would have been entitled to a re- Sec. 700. (c) The net income Sec. 700. (c) (1) From the gross Sec. 700. (c) (1) From the gross income from such sales there shall income from such sales there shall be deducted the allocable portion be deducted the allocable portion of the deductions from gross in- of the deductions from gross income for the taxable year which come for the taxable year which are allowable under the applicable are allowable under the applicable Revenue Act; or Revenue Act; or Taxable Years Beginning before 1939 Taxable Years Sec. 700. (c) (2) If the taxpayer so elects by filing his return on such basis, the total net income for the taxable year from the sale of all articles with respect to which each Federal excise tax was imposed (computed by deducting from the gross income from such sales the allocable portion of the deductions from gross income which are allowable under the applicable Revenue Act, but without deduction of the amount of such Federal excise tax which was paid or of the amount of reimbursement to purchasers with respect to such Federal excise tax) shall be divided by the total quantity of such articles sold during the taxable year and the quotient shall be multiplied by the quantity of such articles involved in the sales specified in subsection (a) (1). Such quantities shall be expressed in terms of the unit on the basis of which the Federal excise tax was imposed. Sec. 700. (c) (2) If the taxpayer Sec. 700. (c) (2) If the taxpayer so elects by filing his return on so elects by filing his return on such basis, the total net income for such basis, the total net income the taxable year from the sale of for the taxable year from the sale all articles with respect to which of all articles with respect to each Federal excise tax was imposed which each Federal excise tax was (computed by deducting from the imposed (computed by deducting gross income from such sales the from the gross income from such allocable portion of the deductions sales the allocable portion of the from gross income which are allow- deductions from gross income able under the applicable Revenue which are allowable under the apAct, but without deduction of the plicable Revenue Act, but without amount of such Federal excise tax deduction of the amount of such which was paid or of the amount Federal excise tax which was paid of reimbursement to purchasers or of the amount of reimbursement with respect to such Federal excise to purchasers with respect to such tax) shall be divided by the total Federal excise tax) shall be divided quantity of such articles sold during by the total quantity of such artithe taxable year and the quotient cles sold during the taxable year shall be multiplied by the quantity and the quotient shall be multiplied of such articles involved in the sales by the quantity of such articles inspecified in subsection (a) (1). Such volved in the sales specified in subquantities shall be expressed in section (a) (1). Such quantities terms of the unit on the basis of shall be expressed in terms of the which the Federal excise tax was unit on the basis of which the Fedimposed. eral excise tax was imposed. For the purposes of this section For the purposes of this section For the purposes of this section the proper apportionment and al- the proper apportionment and al- the proper apportionment and allocation of deductions with respect location of deductions with respect location of deductions with respect to gross income shall be deter- to gross income shall be deter- to gross income shall be determined under rules and regulations mined under rules and regulations mined under rules and regulations prescribed by the Commissioner prescribed by the Commissioner prescribed by the Commissioner with the approval of the Secre- with the approval of the Secre- with the approval of the Secre tary. tary. tary. Sec. 700. (d) The net income Sec. 700. (d) The net income Sec. 700. (d) The net income from reimbursement or refunds from reimbursement or refunds from reimbursement or refunds specified in subsection (a) (2) or specified in subsection (a) (2) or specified in subsection (a) (2) or (3) shall be computed as follows: (3) shall be computed as follows: (3) shall be computed as follows: From the total payment or accrual From the total payment or accrual From the total payment or accrual (1) of reimbursement to the tax- (1) of reimbursement to the tax- (1) of reimbursement to the taxpayer from vendors for amounts payer from vendors for amounts payer from vendors for amounts representing Federal excise tax representing Federal excise tax representing Federal excise tax burdens included in prices paid by burdens included in prices paid by burdens included in prices paid by the taxpayer to such vendors or the taxpayer to such vendors or the taxpayer to such vendors or (2) of refunds or credits to the (2) of refunds or credits to the (2) of refunds or credits to the taxpayer of Federal excise taxes taxpayer of Federal excise taxes taxpayer of Federal excise taxes erroneously or illegally collected erroneously or illegally collected erroneously or illegally collected there shall be deducted the ex- there shall be deducted the ex- there shall be deducted the expenses and fees reasonably in- penses and fees reasonably in- penses and fees reasonably incurred in obtaining such reim- curred in obtaining such reim- curred in obtaining such reimbursement or refunds. bursement or refunds. bursement or refunds. Sec. 700. (e) For the purposes Sec. 700. (e) For the purposes Sec. 700. (e) For the purposes of subsection (a) (1), (2), and of subsection (a) (1), (2), and of subsection (a) (1), (2), and (3), the extent to which the tax- (3), the extent to which the tax- (3), the extent to which the taxpayer shifted to others the burden payer shifted to others the burden payer shifted to others the burden of a Federal excise tax shall be of a Federal excise tax shall be of a Federal excise tax shall be presumed to be an amount com- presumed to be an amount com- presumed to be an amount computed as follows: puted as follows: puted as follows: Sec. 700. (e) (1) From the selling price of the articles there shall be deducted the sum of (A) the Sec. 700. (e) (1) From the selling price of the articles there shall be deducted the sum of (A) the Sec. 700. (e) (1) From the selling price of the articles there shall be deducted the sum of (A) the Sec. 700. (c) (2) If the taxpayer Sec. 700. (c) (2) If the taxpayer so elects by filing his return on so elects by filing his return on such basis, the total net income such basis, the total net income for the taxable year from the sale for the taxable year from the sale of all articles with respect to of all articles with respect to which each Federal excise tax was which each Federal excise tax was imposed (computed by deducting imposed (computed by deducting from the gross income from such from the gross income from such sales the allocable portion of the sales the allocable portion of the deductions from gross income deductions from gross income which are allowable under the ap- which are allowable under the applicable Revenue Act, but without plicable Revenue Act, but without deduction of the amount of such deduction of the amount of such Federal excise tax which was paid Federal excise tax which was paid or of the amount of reimbursement or of the amount of reimbursement to purchasers with respect to such to purchasers with respect to such Federal excise tax) shall be divided Federal excise tax) shall be divided by the total quantity of such arti- by the total quantity of such articles sold during the taxable year cles sold during the taxable year and the quotient shall be multiplied and the quotient shall be multiplied by the quantity of such articles in- by the quantity of such articles involved in the sales specified in sub- volved in the sales specified in subsection (a) (1). Such quantities section (a) (1). Such quantities shall be expressed in terms of the shall be expressed in terms of the unit on the basis of which the Fed- unit on the basis of which the Federal excise tax was imposed. eral excise tax was imposed. For the purposes of this section For the purposes of this section the proper apportionment and al- the proper apportionment and allocation of deductions with respect location of deductions with respect to gross income shall be deter- to gross income shall be determined under rules and regulations mined under rules and regulations prescribed by the Commissioner prescribed by the Commissioner with the approval of the Secre- with the approval of the Secretary. tary. Sec. 700. (d) The net income Sec. 700. (d) The net income from reimbursement or refunds from reimbursement or refunds specified in subsection (a) (2) or specified in subsection (a) (2) or (3) shall be computed as follows: (3) shall be computed as follows: From the total payment or accrual From the total payment or accrual (1) of reimbursement to the tax- (1) of reimbursement to the taxpayer from vendors for amounts payer from vendors for amounts representing Federal excise tax representing Federal excise tax burdens included in prices paid by burdens included in prices paid by the taxpayer to such vendors or the taxpayer to such vendors or (2) of refunds or credits to the (2) of refunds or credits to the taxpayer of Federal excise taxes taxpayer of Federal excise taxes erroneously or illegally collected erroneously or illegally collected, there shall be deducted the ex- there shall be deducted the expenses and fees reasonably in- penses and fees reasonably incurred in obtaining such reim- curred in obtaining such reimbursement or refunds. bursement or refunds. Sec. 700. (e) For the purposes Sec. 700. (e) For the purposes of subsection (a) (1), (2), and of subsection (a) (1), (2), and (3), the extent to which the tax- (3), the extent to which the taxpayer shifted to others the burden payer shifted to others the burden of a Federal excise tax shall be of a Federal excise tax shall be presumed to be an amount com- presumed to be an amount computed as follows: puted as follows: Sec. 700. (e) (1) From the sell- Sec. 700. (e) (1) From the selling price of the articles there shall ing price of the articles there'shall be deducted the sum of (A) the be deducted the sum of (A) the Taxable Years Beginning before 1939 |