subsequently credited against taxes later found to be due. The collector may also include in such claims overassessments discovered by him in the audit of returns on Form 1040A and such other returns as he is authorized by the Commissioner to audit.

In the event any such assessment has been paid the collector may file a blanket claim on Form 843 for credit of such amounts against any unpaid assessments standing against the taxpayer upon the assessment lists held by the collector. If there are no such unpaid assessments against which credit may be taken, the collector shall submit refund schedules to cover such amounts in accordance with instructions issued by the Commissioner.

The collector may also present claims for the abatement of taxes not erroneously assessed but found to be uncollectible. In such cases the collector or deputy collector who made the demand for payment and is conversant with the facts may prepare the claim for abatement on Form 53. Although credits allowed on account of insolvency or absconding release the collector from the obligation created by his receipt for the amount credited, the obligation to pay still remains upon the person assessed. It is the duty of the collector to use the same diligence to collect the tax after it has been abated as uncollectible as before the abatement. Collectors should therefore keep a record of all taxes thus credited and of the persons from whom they are due and should enforce payment whenever it is in their power to do so.

ART. 1304. Claims for credit of taxes erroneously collected.-Any amount of income, war-profits, or excess-profits tax paid in excess of that properly due shall be credited against any such taxes due from the taxpayer under any other return. To obtain such credit, the taxpayer should proceed as follows:

(1) Where the credit demanded is equal to or less than any outstanding assessment of tax, a taxpayer desiring to obtain such credit shall file with the collector charged with the assessment of the tax against which the credit is desired a claim on Form 843 which shall be sworn to and shall contain the following statements: (a) business engaged in by the claimant, (b) character of assessment of tax, (c) amount of tax claimed as a credit, (d) unpaid assessment against which credit is asked and for what taxable year, and (e) all facts regarding the overpayment.

(2) Where the amount claimed as a credit is greater than the outstanding assessment of tax, a taxpayer desiring to obtain such credit and the refund to which he is entitled shall file Form 843, stating thereon the respective amounts claimed as a credit or as a refund. See article 1306. All facts regarding the total overpayment should be stated in the claim.

ART. 1305. Action on claims for credit.-Upon receipt by the collector of a claim for credit on Form 843, he will make proper record thereof in his office and, except in the case of claims covering taxes assessed on the basis of returns on Form 1040 A and on the basis of such other returns as the collector is authorized by the Commissioner to audit, forward the claim immediately to the Commissioner, irrespective of whether or not a claim for refund of the tax now claimed as a credit has previously been filed. Due notice will be given the collector and the taxpayer of the action taken on the claim. Claims for credit covering taxes assessed on the basis of returns which the Commissioner has authorized the collector to audit shall be examined by the collector. He shall then notify the taxpayer of his action on the claim and the taxpayer may, upon receipt of such notice, appeal to the Commissioner from the action of the collector.

If a claim is allowed against additional taxes due for other years, but such other taxes have not yet been assessed, the amount of the excess of such taxes over the overpayment shall be assessed or the excess of the overpayment of such taxes due shall be refunded as the case may be. The effective date of the filing of the claim for credit shall be the actual date of presentation to the collector.

Under no circumstances will a taxpayer be entitled to credit for an alleged overpayment of tax prior to the allowance of such credit by the Commissioner.

ART. 1306. Claims for refund of taxes erroneously collected.-Claims by the taxpayer for the refunding of taxes, interest, penalties and additions to tax erroneously or illegally collected shall be made on Form 843. All facts relied upon in support of the claim should be clearly set forth under oath. In the case of the taxpayer's death, certified copies of the letters of administration or letters testamentary or other similar evidence must be annexed to the claim to show the authority of the administrator or executor. The affidavit may be made by the agent of the person assessed, but in such case a power of attorney must accompany the claim. Checks in payment of claims allowed will be drawn in the names of the persons entitled to the money and will be sent directly to the proper persons. The Commissioner has no authority to refund on equitable grounds penalties legally collected. As to claims for refund of sums recovered by suit, see article 1353.

ART. 1307. Limitations upon the crediting and refunding of taxes paid. Section 281 of the statute authorizes the Commissioner to credit or refund any amount of income, war-profits, or excess-profits tax paid in excess of that properly due under any return against any such tax due from the taxpayer under any other return. With a few exceptions the Commissioner is prohibited from making such

credits or refunds after four years from the time the tax was paid, unless before the expiration of such period the taxpayer files a claim for such credit or refund. The amount of such credit or refund shall not exceed the portion of the tax paid during the four years immediately preceding the date of the allowance of the credit or refund, or if the credit or refund is based upon a claim the amount of the credit or refund shall not exceed the portion of the tax paid during the four years immediately preceding the date of filing the claim for credit or refund.

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 excessprofits taxes in any previous year or years, then the amount of such overpayment shall be credited or refunded regardless of the possible expiration of the four-year period of limitation. This provision applies to returns filed under the Revenue Acts of 1917, 1918, and 1921. The Commissioner is directed to grant this relief without requiring the filing of a claim.

Where the taxpayer has within five years from the date 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 there for is filed either on or before April 1, 1925, or within four years from the time the tax was paid. The effect of this provision is to grant to those taxpayers who, prior to the expiration of the period within which an additional assessment could be made, filed a waiver for the year 1917, an additional period in which to present their claims for refund or credit of the excess amount of the tax paid for the year 1917, with the result that in such cases the claim may be entertained if filed either on or before April 1, 1925, or within four years from the time the tax was paid. An additional period to April 1, 1925, within which the taxpayer may file his claim for the credit or refund of taxes imposed under the Revenue Act of 1918 for the year 1918 is also provided in the event the taxpayer has on or before June 15, 1924, 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.

ART. 1308. Refunds or credits under prior acts.-Subdivision (f) of section 281 of the statute provides that any claim filed prior to the enactment of the Revenue Act of 1924, which but for the provisions

of the other subdivisions of section 281 would have been allowable, shall not be barred by the provisions of such subdivisions, nor shall they bar from allowance a claim for the credit or refund of taxes for the taxable year 1919 or 1920, if such claim is filed within five years after the return was due, even though it is filed after the expiration of four years from the date the tax was paid.

CLOSING BY COMMISSIONER OF TAXABLE YEAR

SEC. 282. (a) If the Commissioner finds that a taxpayer designs quickly to depart from the United States or to remove his property therefrom, or to conceal himself or his property therein, or to do any other act tending to prejudice or to render wholly or partly ineffectual proceedings to collect the tax for the taxable year then last past or the taxable year then current unless such proceedings be brought without delay, the Commissioner shall declare the taxable period for such taxpayer immediately terminated and shall cause notice of such finding and declaration to be given the taxpayer, together with a demand for immediate payment of the tax for the taxable period so declared terminated and of the tax for the preceding taxable year or so much of such tax as is unpaid, whether or not the time otherwise allowed by law for filing return and paying the tax has expired; and such taxes shall thereupon become immediately due and payable. In any proceeding in court brought to enforce payment of taxes made due and payable by virtue of the provisions of this section the finding of the Commissioner, made as herein provided, whether made after notice to the taxpayer or not, shall be for all purposes presumptive evidence of the taxpayer's design.

(b) A taxpayer who is not in default in making any return or paying income, war-profits, or excess-profits tax under any Act of Congress may furnish to the United States, under regulations to be prescribed by the Commissioner, with the approval of the Secretary, security approved by the Commissioner that he will duly make the return next thereafter required to be filed and pay the tax next thereafter required to be paid. The Commissioner may approve and accept in like manner security for return and payment of taxes made due and payable by virtue of the provisions of this section, provided the taxpayer has paid in full all other income, war-profits, or excess-profits taxes due from him under any Act of Congress.

(c) If security is approved and accepted pursuant to the provisions of this section and such further or other security with respect to the tax or taxes covered thereby is given as the Commissioner shall from time to time find necessary and require, payment of such taxes shall not be enforced by any proceedings under the provisions of this section prior to the expiration of the time otherwise allowed for paying such respective taxes.

(d) In the case of a citizen of the United States about to depart from the United States the Commissioner may, at his discretion, waive any or all of the requirements placed on the taxpayer by this section.

(e) No alien shall depart from the United States unless he first procures from the collector or agent in charge a certificate that he has complied with all the obligations imposed upon him by the income, war-profits, and excessprofits tax laws.

(f) If a taxpayer violates or attempts to violate this section there shall, in addition to all other penalties, be added as part of the tax 25 per centum of the total amount of the tax or deficiency in the tax, together with interest at the rate of 1 per centum a month from the time the tax became due.

ART. 1311. Termination of the taxable period by Commissioner.-Section 282 provides that in the case of a taxpayer who designs by immediate departure from the country or otherwise to avoid the payment of the tax for the preceding or current taxable year, the Commissioner may, upon evidence satisfactory to him, declare the taxable period for such taxpayer immediately terminated and cause the service upon him of a notice and demand for immediate payment of the tax for the taxable period declared terminated, and of the tax for the preceding taxable year, or so much of such tax as is unpaid. In such a case the taxpayer is entitled to the personal exemption and credit for dependents, if otherwise allowable under section 216 of the statute (see articles 301-306), but such personal exemption and credit for dependents shall be reduced proportionately to the length of the period for which the return is made. See section 226 (e) and article 431. If suit is necessary to collect a tax made due and payable by the provisions of section 282 of the statute, the Commissioner's finding is presumptive evidence of the taxpayer's design. A taxpayer who is not in default in making the returns or in paying other taxes may procure the postponement until the usual time of the payment of taxes which are or may be due pursuant to this article by depositing with the Commissioner United States bonds of a principal amount double the estimated amount of taxes due for the taxable period, or by furnishing such other securities as may be approved by the Commissioner. See section 1029 of the statute.

Aliens departing from the United States will be required to obtain certificates of compliance with income tax obligations from the collector or revenue agent in charge. Aliens, whether resident or nonresident, who intend to depart from this country should appear before the collector or revenue agent in charge for the district in which they reside and satisfy all income tax obligations with respect to income received up to and including the calendar month next preceding that of their intended departure. Upon payment of such obligations, or upon satisfactory evidence that no tax is due and payable, the collector or revenue agent in charge will issue a certificate of compliance to the applicant. A properly executed certificate of compliance issued by the collector or revenue agent in charge must be presented at the pier, where it will be taken up. Aliens presenting themselves at the point of departure without such certificates of compliance will be examined by internal revenue officers at that point and such taxes as appear to be due and owing will be collected. American citizens departing from the United States will not be required to procure certificates of compliance or to present any other evidence of compliance with income tax obligations.