PART I-ORGANIZATION AND JURISDICTION

Sec. 1100. Status.

The Board of Tax Appeals (hereinafter referred to as the "Board") shall be continued as an independent agency in the Executive Branch of the Government. The Board shall be known as The Tax Court of the United States and the members thereof shall be known as the presiding judge and the judges of the Tax Court of the United States.

Sec. 1101. Jurisdiction.

The Board and its divisions shall have such jurisdiction as is conferred on them by chapters 1, 2, 3 and 4 of this title, by Title II and Title III of the Revenue Act of 1926, 44 Stat. 9, or by laws enacted subsequent to February 26, 1926.

Sec. 1102. Membership.

Sec. 1102. (a) Number.-The Board shall be composed of 16 members.

Sec. 1102. (b) Appointment.-Members of the Board shall be appointed by the President, by and with the advice and consent of the Senate, solely on the grounds of fitness to perform the duties of the office.

Sec. 1102. (c) Salary.-Each member shall receive salary at the rate of $10,000 21d per annum.

Sec. 1102. (d) Expenses for travel and subsistence. The members of the Board shall receive necessary traveling expenses, and expenses actually incurred for subsistence while traveling on duty and away from their designated stations, subject to the same limitations in amount as are now or may hereafter be applicable to the United States Customs Court.

Sec. 1102. (e) Term of office.-The terms of office of the sixteen members first taking office after June 1, 1926, shall expire, as designated by the President at the time of nomination, four at the end of the sixth year, four at the end of the eighth year, four at the end of the tenth year, and four at the end of the twelfth year, after June 2, 1926. The terms of office of all successors shall expire twelve years after the expiration of the terms for which their predecessors were appointed; but any member appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed only for the unexpired term of his predecessor.

Sec. 1102. (f) Removal from office.-Members of the Board may be removed by the President, after notice and opportunity for public hearing, for inefficiency, neglect of duty, or malfeasance in office, but for no other cause.

21d The Salary of Tax Court Judges was increased to $15,000

Sec. 1102. (g) Disbarment of removed members. -A member of the Board removed from office in accordance with subsection (f) shall not be permitted at any time to practice before the Board. Sec. 1103. Organization.

Sec. 1103. (a) Seal.-The Board shall have a seal which shall be judicially noticed.

Sec. 1103. (b) Designation of chairman.-The Board shall at least biennially designate a member to act as chairman.

Sec. 1103. (c) Divisions.-The chairman may from time to time divide the Board into divisions of one or more members, assign the members of the Board thereto, and in case of a division of more than one member, designate the chief thereof. If a division, as a result of a vacancy or the absence or inability of a member assigned thereto to serve thereon, is composed of less than the number of members designated for the division, the chairman may assign other members to the division or direct the division to proceed with the transaction of business without awaiting any additional assignment of members thereto.

Sec. 1103. (d) Quorum.-A majority of the members of the Board or of any division thereof shall constitute a quorum for the transaction of the business of the Board or of the division, respectively. A vacancy in the Board or in any division thereof shall not impair the powers nor affect the duties of the Board or division nor of the remaining members of the Board or division, respectively.

Sec. 1104. Offices.

The principal office of the Board shall be in the District of Columbia, but the Board or any of its divisions may sit at any place within the United States. The Secretary of the Treasury shall provide the Board with suitable rooms in courthouses or other buildings when necessary for hearings by the Board, or any division thereof, outside the District of Columbia.

Sec. 1105. Times and places of meetings.

The times and places of the meetings of the Board and of its divisions shall be prescribed by the chairman with a view to securing reasonable opportunity to taxpayers to appear before the Board or any of its divisions, with as little inconvenience and expense to taxpayers as is practicable.

PART II-PROCEDURE

Sec. 1110. Fee for filing petition.

The Board is authorized to impose a fee in an amount not in excess of $10 to be fixed by the Board for the filing of any petition for the redetermination of a deficiency.

by P. L. 567, 79th Congress, without specifically amending Sec. 1102 (c), I. R. C., supra.

Sec. 1111. Rules of practice, procedure, and evidence.

The proceedings of the Board and its divisions shall be conducted in accordance with such rules of practice and procedure (other than rules of evidence) as the Board may prescribe and in accordance with the rules of evidence applicable in the courts of the District of Columbia in the type of proceedings which prior to September 16, 1938, were within the jurisdiction of the courts of equity of said District.

Sec. 1112. Burden of proof in fraud cases.

In any proceeding involving the issue whether the petitioner has been guilty of fraud with intent to evade tax, the burden of proof in respect of such issue shall be upon the Commissioner.

Sec. 1113. Service of process.

The mailing by registered mail of any pleading, decision, order, notice, or process in respect of proceedings before the Board shall be held sufficient service of such pleading, decision, order, notice, or

process.

Sec. 1114. Administration of oaths and procurement of testimony.

Sec. 1114. (a) In general.-For the efficient administration of the functions vested in the Board or any division thereof, any member of the Board, or any employee of the Board designated in writing for the purpose by the chairman, may administer oaths, and any member of the Board may examine witnesses and require, by subpoena ordered by the Board or any division thereof and signed by the member, (1) the attendance and testimony of witnesses, and the production of all necessary returns, books, papers, documents, correspondence, and other evidence, from any place in the United States at any designated place of hearing, or (2) the taking of a deposition before any designated individual competent to administer oaths under this title. In the case of a deposition the testimony shall be reduced to writing by the individual taking the deposition or under his direction and shall then be subscribed by the deponent.

Sec. 1114. (b) Commissioners.-The Presiding Judge may from time to time by written order designate an attorney from the legal staff of the Court to act as a commissioner in a particular case. The commissioner so designated shall proceed under such rules and regulations as may be promulgated by the Court. The commissioner shall receive the same travel and subsistence allowances now or hereafter provided by law for commissioners of the Court of Claims.

Sec. 1114, I. R. C., supra, amended by Sec. 503, R.
A. of 1943, enacted on Feb. 25, 1944, by inserting
"(a) In General.-" immediately after heading of
Sec. 1114 and adding Sec. 1114 (b) supra.

Sec. 1115. Witness fees.

Sec. 1115. (a) Amount.-Any witness summoned or whose deposition is taken under section 1114 shall receive the same fees and mileage as witnesses in courts of the United States.

Sec. 1115. (b) Payment.-Such fees and mileage and the expenses of taking any such deposition shall be paid as follows:

Sec. 1115. (b) (1) Witnesses for Commissioner.— In the case of witnesses for the Commissioner, such payments shall be made by the Secretary out of any moneys appropriated for the collection of internalrevenue taxes, and may be made in advance.

Sec. 1115. (b) (2) Other witnesses.-In the case of any other witnesses, such payments shall be made, subject to rules prescribed by the Board, by the party at whose instance the witness appears or the deposition is taken.

Sec. 1116. Hearings.

Notice and opportunity to be heard upon any proceeding instituted before the Board shall be given to the taxpayer and the Commissioner. If an opportunity to be heard upon the proceeding is given before a division of the Board, neither the taxpayer nor the Commissioner shall be entitled to notice and opportunity to be heard before the Board upon review, except upon a specific order of the chairman. Hearings before the Board and its divisions shall be open to the public, and the testimony, and, if the Board so requires, the argument shall be stenographically reported. The Board is authorized to contract (by renewal of contract or otherwise) for the reporting of such hearings, and in such contract to fix the terms and conditions under which transcripts will be supplied by the contractor to the Board and to other persons and agencies.

Sec. 1117. Reports and decisions.

Sec. 1117. (a) Requirement.-A report upon any proceeding instituted before the Board and a decision thereon shall be made as quickly as practicable. The decision shall be made by a member in accordance with the report of the Board, and such decision so made shall, when entered, be the decision of the Board.

Sec. 1117. (b) Inclusion of findings of fact or opinions in report.-It shall be the duty of the Board and of each division to include in its report upon any proceeding its findings of fact or opinion or memorandum opinion. The Board shall report in writing all its findings of fact, opinions and memorandum opinions.

Sec. 1117. (c) Date of decision.-A decision of the Board (except a decision dismissing a proceeding for lack of jurisdiction) shall be held to be rendered upon the date that an order specifying the amount of the deficiency is entered in the records of the Board. If the Board dismisses a proceeding for reasons other than lack of jurisdiction and is unable from the record to determine the amount of the deficiency determined by the Commissioner, or if the Board dismisses a proceeding for lack of jurisdiction, an order to that effect shall be entered in the records of the Board, and the decision of the Board shall be held to be rendered upon the date of such entry.

Sec. 1117. (d) Effect of decision dismissing petition.-If a petition for a redetermination of a deficiency has been filed by the taxpayer, a decision of the Board dismissing the proceeding shall be considered as its decision that the deficiency is the amount determined by the Commissioner. An order specifying such amount shall be entered in the records of the Board unless the Board can not determine such amount from the record in the proceeding, or unless the dismissal is for lack of jurisdiction.

Sec. 1117. (e) Effect of decision that tax is barred by limitation.-If the assessment or collection of any tax is barred by any statute of limitations, the decision of the Board to that effect shall be considered as its decision that there is no deficiency in respect of such tax.

Sec. 1117. (f) Findings of fact as evidence.The findings of the Board made in connection with any decision prior to February 26, 1926 shall, notwithstanding the enactment of the Revenue Act of 1926, 44 Stat. 9, continue to be prima facie evidence of the facts therein stated.

Sec. 1117. (g) Proceeding frivolous.-Whenever it appears to the Board that proceedings before it have been instituted by the taxpayer merely for delay, damages, in an amount not in excess of $500 shall be awarded to the United States by the Board in its decision. Damages so awarded shall be assessed at the same time as the deficiency and shall be paid upon notice and demand from the collector, and shall be collected as a part of the tax.

Sec. 1117. (h) Cross references.—

(1) For special provisions relating to reports of divisions, see section 1118.

(2) For publication of reports, see section 1121. Sec. 1118. Provisions of special application to divisions.

Sec. 1118. (a) Hearings, determinations, and reports.-A division shall hear, and make a determination upon, any proceeding instituted before the Board and any motion in connection therewith, assigned to such division by the chairman, and shall make a report of any such determination which constitutes its final disposition of the proceeding.

Sec. 1118. (b) Effect of action by a division.— The report of the division shall become the report of the Board within 30 days after such report by the division, unless within such period the chairman has directed that such report shall be reviewed by the Board. Any preliminary action by a division which does not form the basis for the entry of the final decision shall not be subject to review by the Board except in accordance with such rules as the Board may prescribe. The report of a division shall not be a part of the record in any case in which the chairman directs that such report shall be reviewed by the Board.

Sec. 1119. Provisions of special application to transferees.

Sec. 1119. (a) Burden of proof.-In proceedings before the Board the burden of proof shall be upon the Commissioner to show that a petitioner is liable as a transferee of property of a taxpayer, but not to show that the taxpayer was liable for the tax.

Sec. 1119. (b) Evidence.-Upon application to the Board, a transferee of property of a taxpayer shall be entitled, under rules prescribed by the Board, to a preliminary examination of books, papers, documents, correspondence, and other evidence of the taxpayer or a preceding transferee of the taxpayer's property, if the transferee making the application is a petitioner before the Board for the redetermination of his liability in respect of the tax (including interest, penalties, additional amounts, and additions to the tax provided by law) imposed upon the taxpayer. Upon such application the Board may require by subpoena, ordered by the Board or any division thereof and signed by a member, the production of all such books, papers, documents, correspondence, and other evidence within the United States the production of which, in the opinion of the Board or division thereof, is necessary to enable the transferee to ascertain the liability of the taxpayer or preceding transferee and will not result in undue hardship to the taxpayer or preceding transferee. Such examination shall be had at such time and place as may be designated in the subpoena.

Sec. 1120. Publicity of proceedings.

All reports of the Board and all evidence received by the Board and its divisions, including a transcript of the stenographic report of the hearings, shall be public records open to the inspection of the public; except that after the decision of the Board in any proceeding has become final the Board may, upon motion of the taxpayer or the Commissioner, permit the withdrawal by the party entitled thereto of originals of books, documents, and records, and of models, diagrams, and other exhibits, introduced in evidence before the Board or any division; or the Board may, on its own motion, make such other disposition thereof as it deems advisable.

Sec. 1121. Publication of reports.

The Board shall provide for the publication of its reports at the Government Printing Office in such form and manner as may be best adapted for public information and use, and such authorized publication shall be competent evidence of the reports of the Board therein contained in all courts of the United States and of the several States without any further proof or authentication thereof. Such reports shall be subject to sale in the same manner and upon the same terms as other public documents.

PART III-MISCELLANEOUS PROVISIONS

Sec. 1130. Employees.

Sec. 1130. (a) Appointment and compensation. -The Board is authorized in accordance with the civil service laws to appoint, and in accordance with the Classification Act of 1923, 42 Stat. 1488 (U. S. C., Title 5, § 13) as amended to fix the compensation

of, such employees as may be necessary efficiently to execute the functions vested in the Board.

Sec. 1130. (b) Expenses for travel and subsistence. The employees of the Board shall receive their necessary traveling expenses, and expenses for subsistence while traveling on duty and away from their designated stations, as provided in the Subsistence Expense Act of 1926, 44 Stat. 688 (U. S. C., Title 5, c. 16).

Sec. 1131. Expenditures.

The Board is authorized to make such expenditures (including expenditures for personal services and rent at the seat of Government and elsewhere, and for law books, books of reference, and periodicals), as may be necessary efficiently to execute the functions vested in the Board. All expenditures of the Board shall be allowed and paid, out of any moneys appropriated for the purposes of the Board,

upon presentation of itemized vouchers therefor signed by the chairman.

Sec. 1132. Disposition of fees.

All fees received by the Board shall be covered into the Treasury as miscellaneous receipts. Section 3709 of the Revised Statutes (U. S. C., Title 41, § 5) shall not be construed to apply to any purchase or service rendered for the Board when the aggregate amount involved does not exceed the sum of $25.

Sec. 1133. Fee for transcript of record.

The Board is authorized to fix a fee, not in excess of the fee fixed by law to be charged and collected therefor by the clerks of the district courts, for comparing, or for preparing and comparing, a transcript of the record, or for copying any record, entry, or other paper and the comparison and certification thereof.

Sec. 1140. Date when Board decision becomes final.

The decision of the Board shall become final

Sec. 1140. (a) Petition for review not filed on time.-Upon the expiration of the time allowed for filing a petition for review, if no such petition has been duly filed within such time; or

Sec. 1140. (b) Decision affirmed or petition for review dismissed.—

Sec. 1140. (b) (1) Petition for certiorari not filed on time.-Upon the expiration of the time allowed for filing a petition for certiorari, if the decision of the Board has been affirmed or the petition for review dismissed by the Circuit Court of Appeals and no petition for certiorari has been duly filed; or

Sec. 1140. (b) (2) Petition for certiorari denied.-Upon the denial of a petition for certiorari, if the decision of the Board has been affirmed or the petition for review dismissed by the Circuit Court of Appeals; or

Sec. 1140. (b) (3) After mandate of Supreme Court.-Upon the expiration of 30 days from the date of issuance of the mandate of the Supreme Court, if such Court directs that the decision of the Board be affirmed or the petition for review dismissed.

Sec. 1140. (c) Decision modified or reversed.

Sec. 1140. (c) (1) Upon mandate of Supreme Court. If the Supreme Court directs that the decision of the Board be modified or reversed, the decision of the Board rendered in accordance with the mandate of the Supreme Court shall become final upon the expiration of 30 days from the time it was rendered, unless within such 30 days either the Commissioner or the taxpayer has instituted proceedings to have such decision corrected to accord with the mandate, in which event the decision of the Board shall become final when so corrected.

Sec. 1140. (c) (2) Upon mandate of the Circuit Court of Appeals.-If the decision of the Board is modified or reversed by the Circuit Court of Appeals, and if (1) the time allowed for filing a petition for certiorari has expired and no such petition has been duly filed, or (2) the petition for certiorari has been denied, or (3) the decision of the Court has been affirmed by the Supreme Court, then the decision of the Board rendered in accordance with the mandate of the Circuit Court of Appeals shall become final on the expiration of 30 days from the time such decision of the Board was rendered, unless within such 30 days either the Commissioner or the taxpayer has instituted proceedings to have such decision corrected so that it will accord with the mandate, in which event the decision of the Board shall become final when so corrected.

Sec. 1140. (d) Rehearing.—If the Supreme Court orders a rehearing; or if the case is remanded by the Circuit Court of Appeals to the Board for a rehearing, and if (1) the time allowed for filing a petition for certiorari has expired, and no such petition has been duly filed, or (2) the petition for certiorari has been denied, or (3) the decision of the Court has been affirmed by the Supreme Court, then the decision of the Board rendered upon such rehearing shall become final in the same manner as though no prior decision of the Board had been rendered.

Sec. 1140. (e) Definitions.-As used in this section

Sec. 1140. (e) (1) Circuit Court of Appeals.The term "Circuit Court of Appeals" includes the United States Court of Appeals for the District of Columbia;

Sec. 1140. (e) (2) Mandate.-The term "mandate," in case a mandate has been recalled prior to the expiration of 30 days from the date of issuance thereof, means the final mandate.

Sec. 1141. Courts of review.