be sustained by affidavits of the party against whom the deficiency was assessed or of other parties cognizant of the facts. The affidavits must contain full and explicit statements of all material facts relating to the claim in support of which they are offered, and to the proper consideration of which they are essential.

The collector, except in the case of a claim in respect of a return audited by him, shall transmit the claim to the Commissioner without delay. The claim shall be considered in accordance with the procedure outlined in article 1211 in connection with protests filed in respect of deficiencies of which the taxpayer is advised prior to assessment. The Commissioner shall make his final decision thereon and shall notify the taxpayer of such decision by registered mail, advising him that if he is not satisfied with the adjudication he may file an appeal to the Board of Tax Appeals within 60 days after the mailing of such notice. If, after considering the appeal the Board denies the claim in whole or in part, the amount the claim for which is denied shall be collected on notice and demand from the collector, and the amount the claim for which is allowed shall be abated. The Commissioner may, however, begin a proceeding in court for the collection of the amount so abated at any time within one year from the final decision of the Board, even though the period in which suits for the collection of the tax may be begun under section 277 of the statute has expired. See article 1272.

If a claim in abatement is denied in whole or in part, there shall be collected at the same time and as a part of the tax interest upon the amount, the claim for which was denied, at the rate of 6 per cent per annum from the date of notice and demand for payment of the tax, made immediately upon assessment of the deficiency (see section 274(d) of the statute and article 1233), to the date of notice and demand made after the decision on the claim. If the amount included in notice and demand for payment after the claim is adjudicated is not paid within 10 days after such notice and demand there shall be collected as a part of the tax interest upon the unpaid amount at the rate of 1 per cent a month from the date of notice and demand until the amount is paid. If, however, the taxpayer is the estate of an insolvent, incompetent, or deceased person, the interest shall be at the rate of 6 per cent per annum. See subdivisions (b) and (c) of section 276 of the statute and article 1261.

Except in the case of deficiencies assessed under the provisions of section 274(d) of the statute, because the Commissioner believes the assessment and collection of such deficiencies will be jeopardized by delay, no claim for abatement of any assessment of any income, warprofits, or excess-profits tax shall be filed. This provision is a limitation on the filing of claims in abatement by taxpayers and does not

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affect the filing of blanket claims in abatement by collectors. See section 3218 of the Revised Statutes and section 3220 of the Revised Statutes, as amended by the Revenue Act of 1918 and reenacted by section 1011 of the statute. Also see articles 1302 and 1303. This limitation on the filing of claims in abatement by taxpayers does not apply with reference to assessments made prior to the enactment of the Revenue Act of 1924.

TAXES UNDER PRIOR ACTS

SEC. 280. If after the enactment of this Act the Commissioner determines that any assessment should be made in respect of any income, war-profits, or excess-profits tax imposed by the Revenue Act of 1916, the Revenue Act of 1917, the Revenue Act of 1918, or the Revenue Act of 1921, or by any such Act as amended, the amount which should be assessed (whether as deficiency or as interest, penalty, or other addition to the tax) shall be computed as if this Act had not been enacted, but the amount so computed shall be assessed, collected, and paid in the same manner and subject to the same provisions and limitations (including the provisions in case of delinquency in payment after notice and demand) as in the case of the taxes imposed by this title, except as otherwise provided in section 277.

ART. 1291. Assessment and collection of taxes under prior acts.—If after the enactment of the Revenue Act of 1924, the Commissioner determines that any assessment should be made in respect of any income, war-profits, or excess-profits tax imposed by the Revenue Act of 1916, the Revenue Act of 1917, the Revenue Act of 1918, the Revenue Act of 1921, or by any such Act as amended, the amount which should be assessed (whether as deficiency or as interest, penalty, or addition to tax) shall be computed as if the Revenue Act of 1924 had not been enacted; but the amount so computed shall be assessed, collected, and paid in the same manner and subject to the same provisions and limitations (including the provisions in case of delinquency in payment after notice and demand) as in the case of taxes imposed by this title, except as otherwise provided in section 277 of the statute. Section 280 contains two provisions with reference to assessments to be made after the enactment of the Revenue Act of 1924 in respect of any income, warprofits, or excess-profits tax imposed by any of the revenue acts enumerated. In the first place, the amount of the assessment is to be computed under the rates of tax, interest, and penalties applicable to the tax for the year in question before the Revenue Act of 1924 was enacted. In the second place, the procedure in assessing the tax is the same as that provided for the assessment of the tax imposed by Title II of the Revenue Act of 1924, except in the case of the limitation on assessment and collection specifically provided in section 277 of this statute in the case of taxes imposed by the Acts in question. The taxpayer will have the same right of appeal to

the Board of Tax Appeals in such cases as he does under the provisions of section 274 in the case of a deficiency determined in respect of taxes imposed by Title II of this Act. These provisions apply only in respect of assessments made under the revenue acts enumerated above, and in those cases only where such assessments are made after June 2, 1924, the date of the enactment of the Revenue Act of 1924.

CREDITS AND REFUNDS

SEC. 281. (a) Where there has been an overpayment of any income, warprofits, or excess-profits tax imposed by this Act, the Act entitled "An Act to provide revenue, equalize duties, and encourage the industries of the United States, and for other purposes," approved August 5, 1909, the Act entitled "An Act to reduce tariff duties and to provide revenue for the Government, and for other purposes," approved October 3, 1913, the Revenue Act of 1916, the Revenue Act of 1917, the Revenue Act of 1918, or the Revenue Act of 1921, or any such Act as amended, the amount of such overpayment shall be credited against any income, war-profits, or excess-profits tax or installment thereof then due from the taxpayer, and any balance of such excess shall be refunded immediately to the taxpayer.

(b) Except as provided in subdivisions (c) and (e) of this section, (1) no such credit or refund shall be allowed or made after four years from the time the tax was paid, unless before the expiration of such four years a claim therefor is filed by the taxpayer, nor (2) shall the amount of the credit or refund exceed the portion of the tax paid during the four years immediately preceding the filing of the claim or, if no claim was filed, then during the four years immediately preceding the allowance of the credit or refund.

(c) If the invested capital of a taxpayer is decreased by the Commissioner, and such decrease is due to the fact that the taxpayer failed to take adequate deductions in previous years, with the result that there has been an overpayment of income, war-profits, or excess-profits taxes in any previous year or years, then the amount of such overpayment shall be credited or refunded, without the filing of a claim therefor, notwithstanding the period of limitation provided for in subdivision (b) has expired.

(d) Where there has been an overpayment of tax under section 221 or 237 any refund or credit made under the provisions of this section shall be made to the withholding agent unless the amount of such tax was actually withheld by the withholding agent.

(e) If the taxpayer has, within five years from the time the return for the taxable year 1917 was due, filed a waiver of his right to have the taxes due for such taxable year determined and assessed within five years after the return was filed, or if he has, on or before June 15, 1924, filed such a waiver in respect of the taxes due for the taxable year 1918, then such credit or refund relating to the taxes for the year in respect of which the waiver was filed shall be allowed or made if claim therefor is filed either on or before April 1, 1925, or within four years from the time the tax was paid.

(f) This section shall not (1) bar from allowance a claim for credit or refund filed prior to the enactment of this Act which but for such enactment would have been allowable, or (2) bar from allowance a claim in respect of a tax for the taxable year 1919 or 1920 if such claim is filed before the expiration of five years after the date the return was due.

ART. 1301. Authority for abatement, refund, and credit of tax.— Authority for the credit and refund of any income, war-profits, or excess-profits tax imposed by the Revenue Act of 1924, the Act of August 5, 1909, the Act of October 3, 1913, the Revenue Act of 1916, the Revenue Act of 1917, the Revenue Act of 1918, or the Revenue Act of 1921, or any such Act as amended, which has been erroneously assessed and collected, is contained in section 281 of the statute, Authority for the abatement of such taxes is contained in section 279 of the statute. See article 1281. General authority for the credit, refund or abatement of any such tax is found in section 3220 of the Revised Statutes as amended by the Revenue Act of 1918, and reenacted by section 1011 of the Revenue Act of 1924 which provides:

The Commissioner of Internal Revenue, subject to regulations prescribed by the Secretary of the Treasury, 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; also to repay 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 expenses of suit; also all damages and costs recovered against any assessor, assistant assessor, 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, and shall make report to Congress at the beginning of each regular session of Congress of all transactions under this section.

In the case of taxpayers the authority to file a claim for the abatement of an assessment of any income, war-profits, or excess-profits taxes imposed by the Acts enumerated in this article is limited to assessments made in accordance with the provisions of section 274(d) of the statute. See section 279 (d) and article 1281. The provisions of section 279 (d) do not impair the authority of the collectors to file claims with the Commissioner for relief from charges against them for uncollectible items in accordance with section 3218 of the Revised Statutes as amended, which provides:

Every collector shall be charged with the whole amount of taxes, whether contained in lists transmitted to him by the Commissioner of Internal Revenue, or by other collectors, or delivered to him by his predecessor in office, and with the additions thereto, with the par value of all stamps deposited with him, and with all moneys collected for penalties, forfeitures, fees, or costs; and he shall be credited with all payments into the Treasury made as provided by law, with all stamps returned by him uncanceled to the Treasury, and with the amount of taxes contained in the lists transmitted in the manner heretofore provided to other collectors, and by them receipted as aforesaid; also with the amount of the taxes of such persons as may have absconded, or become insolvent, prior to the day when the tax ought, according to the

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provisions of law, to have been collected, and with all uncollected taxes transferred by him or by his deputy acting as collector to his successor in office: Provided, That it shall be proved to the satisfaction of the Commissioner of Internal Revenue, who shall certify the facts to the (First) Comptroller of the Treasury, that due diligence was used by the collector. And each collector shall also be credited with the amount of all property purchased by him for the use of the United States, provided he faithfully account for and pay over the proceeds thereof upon a resale of the same as required by law.

ART. 1302. Refund, credit, and abatement adjustments.-Reduction of internal revenue assessments and adjustments of overpayments of revenues will be accomplished in one of three ways:

(1) On the basis of a claim submitted by a taxpayer on Form 843 for the abatement, credit, or refund of the tax. The claim, together with appropriate supporting evidence, must be filed in the office of the collector of internal revenue charged with the collection of the tax or, if the tax has been paid, in the office of the collector for the district in which the tax was paid.

(2) On the basis of a certificate of overassessment prepared by the appropriate administrative unit in the Bureau in each case in which an overassessment of tax is disclosed through audit of a return.

(3) On the basis of a blanket claim, a schedule of taxes found to be uncollectible, or a schedule of duplicate payments and overpayments due to obvious errors on all forms of taxable returns submitted by a collector of internal revenue.

In cases covered by paragraph (2) the taxpayer need not file a claim. Proper adjustment will be made in the Bureau and notice thereof forwarded to the taxpayer. Such adjustments will not be made, however, after the expiration of four years from the date the tax was paid. See article 1307. Where an amount of tax in excess of that properly due has been paid by a withholding agent, the refund or credit of such excess amount shall be made to the withholding agent unless the amount of such tax was actually withheld by the withholding agent.

ART. 1303. Claims by collectors.-A collector may present blanket claims on Form 843 for the abatement of certain items which were erroneously assessed. A large part of these items fall in a class where the error in assessment is apparent and the abatement of such assessment by use of blanket claims serves to relieve the collector of the charge against him for such amounts and to relieve him in an expeditious manner of the duty of collecting from the taxpayer certain amounts which a summary examination clearly shows are not due from the taxpayer. Some of the items included in this class of cases are duplicate assessments, amounts assessed as unidentified collections and later identified, assessments resulting from errors in computation, and amounts entered as excess collections which are