CHAPTER IV ASSESSMENT AND COLLECTION Revenue Act of 1924. SEC. 324. The tax imposed by section 319 shall be paid by the donor on or before the 15th day of March, and shall be assessed, collected, and paid in the same manner and subject, in so far as applicable, to the same provisions of law as the tax imposed by section 301. Regulations 67.59 ART. 34. Certain provisions of the estate tax have application. The section last quoted from the gift tax title provides that such tax shall be assessed, collected, and paid in the same manner as the estate tax, and shall be subject, in so far as applicable, to the same provisions of law as those imposing the estate tax, and for that reason there will be found set out in these regulations various applicable sections of the estate tax title. ART. 35. Appeals and hearings.-An appeal may be taken by any donor, his executor, or the administrator of his estate, to the Board of Tax Appeals from any final determination by the commissioner that there is a deficiency in respect of 59 The provisions are substantially the same as in the Estate Tax, and the regulations are usually the same. The substantial identities are as follows: Regulations Regulations 67 Regulations Regulations 67 68 the gift tax, provided the time within which an assessment may be made has not expired. Where, however, a jeopardy assessment is made, no appeal can be taken to the board until after a claim for abatement has been filed and acted upon by the commissioner. (See art. 53.) 6o 60 ART. 37. Payment of tax.-The tax must be paid on or before the 15th day of March of the year succeeding the calendar year in which the gifts were made, unless an extension of time for payment thereof has been granted by the commissioner. No discount will be allowed for payment in advance of the due date. The collector will grant to the person paying the tax duplicate receipts, either of which will be sufficient evidence of such payment.* 61 ART. 39. Donor liable for tax.-The statute provides that the donor shall pay the tax. Where the donor dies before the tax is paid, his executor or administrator shall make payment thereof to the collector. Where there is no duly qualified executor or administrator, all persons in actual or constructive possession of any property of the donor are liable for and required to pay the tax to the extent of the value of such property. As to the liability of the donee, see article 45, and as to that of the executor, see Article 59. ART. 45. Property subject to lien.- This lien attaches to all the property of the donor, to the extent of the tax shown to be due by the return and of any deficiency tax, interest, and ad valorem penalty found to be due upon audit and review of the return. The lien also attaches to any property constituting the gift. Where the donor transferred or placed in trust any property by gift, a lien attaches thereto as stated in the preceding paragraph, and the donee or trustee is personally liable for the tax. Where the donee or trustee sells the property to a bona fide purchaser for a fair consideration in money or money's worth, the lien upon the property is divested, but there is substituted a like lien upon all the property of the donee or 60 The remainder of this article is substantially the same as Article 76 of Regulations 68. 61 The remainder of this article is substantially the same as Article 78 of Regulations 68. trustee, except such thereof as may be sold to a bona fide purchaser for a fair consideration in money or money's worth. The lien upon the entire property constituting gifts or upon the property of the donor continues for a period of ten years after the gift, or gifts, except: (1) Where the tax is paid in full before the expiration of such period; (2) In case of the donor's death, such portion of his estate as is used for the payment of charges against the estate and expenses of its administration, allowed by any court having jurisdiction thereof; (3) Such of the property constituting the gift as has been sold by the donee or trustee to a bona fide purchaser for a fair consideration in money or money's worth; or (4) Where the commissioner issues his certificate releasing such lien. (See art. 46.) ART. 56. Claim for refund.-A claim may be filed for refund of any tax, interest, or penalty, alleged to be excessive or illegal, where the payment thereof has been made either upon the basis of the return or as a result of the audit and review thereof. Claims for refund must be presented to the commissioner within four years next after payment of the amount sought to be refunded. Such claim must be made on Form 843. As in the case of a claim for abatement, the burden of proof rests upon the claimant. All the facts relied upon in support of the claim should be clearly set forth under oath. The requirements of the remainder of this article. should be complied with wherever applicable. (1) Where a claim is filed after the death of the donor, and the administration of his estate has been closed, and the claim is signed by one only, or by less than all, of a number of beneficiaries entitled to share in the refund, or is signed by a person acting as attorney or agent for the interested parties, there must accompany the claim, in addition to the proof required in paragraph (3) infra, a power of attorney duly executed by all beneficiaries entitled to any portion of the repayment, authorizing the claimant or claimants to present the matter before the bureau. Under the law warrants in payment of claims can only be drawn payable. to the party, or parties, entitled to the proceeds, and consequently cannot be drawn payable to attorneys in fact or agents. (2) Where the claim is made by an executor or adminis trator, a certificate of the court must be furnished showing that the appointment remains in full force and effect. (3) Where the executor or administrator has been discharged and no administrator de bonis non has been appointed and qualified, there should be submitted, in lieu of the certificate above mentioned, (a) a certified copy of the court order granting the discharge, and (b) a certified copy of the order of distribution, or, if such order does not fully disclose the identity of the person or persons entitled to receive any amount that may be refunded and the percentage or proportion thereof to which each, if more than one, is entitled, there should be submitted a certified copy of the decedent's will, if any, and such further proof as may be requisite to establish both the identity of such person or persons and the percentage or proportion of the amount sought to be refunded to which each, where there are more than one, is entitled. ART. 59. Extent of liability.-Where the donor dies before the tax is paid his executor or the administrator of his estate is personally liable for the payment of the tax if he pays any debts of the donor before he pays the tax. |