Sec. 1141. (a) Jurisdiction.-The courts of appeals shall have exclusive jurisdiction to review the decisions of the Tax Court, except as provided in Section 1254 of Title 28 of the United States Code, in the same manner and to the same extent as decisions of the district courts in civil actions tried without a jury; and the judgment of any such court shall be final, except that it shall be subject to review by the Supreme Court of the United States upon certiorari, in the manner provided in Section 1254 of Title 28 of the United States Code.

Sec. 1141 (a), I. R. C., was amended to read as above by P. L. 773, 80th Cong. and by Sec. 128, P. L. 72, 81st Cong.

Sec. 1141. (b) Venue.—

Sec. 1141. (b) (1) In general.-Except as provided in paragraph 2, such decisions may be reviewed by the Circuit Court of Appeals for the circuit in which is located the collector's office to which was made the return of the tax in respect of which the liability arises or, if no return was made, then by the United States Court of Appeals for the District of Columbia.

Sec. 1141. (b) (2) By agreement.-Notwithstanding the provisions of paragraph 1, such decisions may be reviewed by any Circuit Court of Appeals, or the United States Court of Appeals for the District of Columbia, which may be designated by the Commissioner and the taxpayer by stipulation in writing.

Sec. 1141. (b) (3) Application of subsection.— This subsection shall be applicable to all decisions of the Board rendered on and after May 10, 1934, and section 1002 of the Revenue Act of 1926, 44 Stat. 110, as in force prior to May 10, 1934, shall be applicable to such decisions rendered prior thereto, except that paragraph 2 of this subsection may be applied to any such decision rendered prior to May 10, 1934. Sec. 1141. (c) Powers.—

Sec. 1141. (c) (1) To affirm, modify, or reverse.Upon such review, such courts shall have power to affirm or, if the decision of the Board is not in accordance with law, to modify or to reverse the decision of the Board, with or without remanding the case for a rehearing, as justice may require.

Sec. 1141. (c) (2) To make rules.-Such courts are authorized to adopt rules for the filing of the petition for review, the preparation of the record for review, and the conduct of proceedings upon such review.

Sec. 1141. (c) (3) To require additional security.-Nothing in section 1145 shall be construed as relieving the petitioner from making or filing such undertakings as the court may require as a condition of or in connection with the review.

Sec. 1141. (c) (4) To impose damages.-The Circuit Court of Appeals, the United States Court of Appeals for the District of Columbia, and the Supreme Court shall have power to impose damages in any case where the decision of the Board is affirmed and it appears that the petition was filed merely for delay.

Sec. 1142. Petition for review. The decision of the Board rendered after February 26, 1926 (except as provided in subdivision (j) of section 283 and in subdivision (h) of section 318 of the Revenue Act of 1926, 44 Stat. 65, 83, relating to hearings before the Board prior to February 26, 1926) may be reviewed by a Circuit Court of Appeals, or the United States Court of Appeals for the District of Columbia, as provided in section 1141, if a petition for such review is filed by either the Commissioner or the taxpayer within three months after the decision is rendered, or, in the case of a decision rendered on or before June 6, 1932, within six months after the decision is rendered.

Sec. 1143. Change of Commissioner.

When the incumbent of the office of Commissioner changes, no substitution of the name of his successor shall be required in proceedings pending after May 10, 1934, before any appellate court reviewing the action of the Board.

Sec. 1144. Cross reference.

For authority of the Board to fix fees for transcripts of records, see section 1133.

Sec. 1145. Bond to stay assessment and collection.

Notwithstanding any provision of law imposing restrictions on the assessment and collection of deficiencies, the review under section 1142 shall not operate as a stay of assessment or collection of any portion of the amount of the deficiency determined by the Board unless a petition for review in respect of such portion is duly filed by the taxpayer, and then only if the taxpayer (1) on or before the time his petition for review is filed has filed with the Board a bond in a sum fixed by the Board not exficiency in respect of which the petition for review ceeding double the amount of the portion of the deis filed, and with surety approved by the Board, conditioned upon the payment of the deficiency as finally determined, together with any interest, additional amounts, or additions to the tax provided for by law, or (2) has filed a jeopardy bond under the income or estate tax laws. If as a result of a waiver of the restrictions on the assessment and collection of a deficiency any part of the amount determined by the Board is paid after the filing of the review bond, such bond shall, at the request of the taxpayer, be proportionately reduced.

Sec. 1146. Refund, credit, or abatement of amounts disallowed.

In cases where assessment or collection has not been stayed by the filing of a bond, then if the amount of the deficiency determined by the Board is disallowed in whole or in part by the court, the amount so disallowed shall be credited or refunded to the taxpayer, without the making of claim therefor, or, if collection has not been made, shall be abated.

Secs. 1100-1146, I. R. C., supra, pertaining to
Board of Tax Appeals, originated 1924 as Sec. 900,
R. A. of 1924, as amended by Sec. 1000-1005, R. A.
of 1926.

For any amendments prior to 1944, see

Sec. 1200. Tax.

Sec. 1200. (a) Domestic corporations.-For each year ending June 30, beginning with the year ending June 30, 1939, there shall be imposed upon every domestic corporation with respect to carrying on or doing business for any part of such year an excise tax of $1.25 for each $1,000 of the declared value of its capital stock.

Sec. 1200. (b) Foreign corporations. For each year ending June 30, beginning with the year ending June 30, 1939, there shall be imposed upon every foreign corporation with respect to carrying on or doing business in the United States for any part of such year an excise tax equivalent to $1.25 for each $1,000 of the declared value of capital employed in the transaction of its business in the United States.

Sec. 1201. Exemptions.

Sec. 1201. (a) The taxes imposed by section 1200 shall not apply

Sec. 1201. (a) (1) Corporations exempt from income tax.-To any corporation enumerated in section 101;

Sec. 1201. (a) (2) Insurance companies.-To any insurance company subject to the tax imposed by section 201, 204, or 207.

Sec. 1201. (b) Common trust funds.—

For exemption of common trust funds from the capital stock tax, see section 169 (b) of chapter 1.

Sec. 1202. Declared value.

Sec. 1202. (a) Declaration of value.-The declared value shall be the value as declared by the corporation in its return for the year (which declaration of value cannot be amended). The value declared by the corporation in its return shall be as of the close of its last income-tax taxable year ending with or prior to the close of the capital stock tax taxable year (or as of the date of organization in the case of corporation having no income-tax taxable year ending with or prior to the close of such declaration year).

Sec. 1202. (b) Credit for China Trade Act Corporations. For the purpose of the tax imposed by section 1200 there shall be allowed in the case of a corporation organized under the China Trade Act, 1922, 42 Stat. 849 (U. S. C., 1940 ed., title 15, ch. 4), as a credit against the declared value of its capital stock, an amount equal to the proportion of such declared value which the par value of the shares of

22 Sec. 201, R. A. of 145, reads as follows: Sec. 201. Repeal of capital stock tax.

stock of the corporation, owned on the last day of the taxable year by (1) persons resident in China, the United States, or possessions of the United States, and (2) individual citizens of the United States or China wherever resident, bears to the par value of the whole number of shares of stock of the corporation outstanding on such date. For the purposes of this subsection shares of stock of a corporation shall be considered to be owned by the person in whom the equitable right to the income from such shares is in good faith vested; and as used in this subsection the term "China" shall have the same meaning as when used in the China Trade Act, 1922. Sec. 1203. Returns.

Sec. 1203. (a) Requirement.-Every corporation liable for tax under section 1200 shall make a return under oath. Such return shall contain such information and be made in such manner as the Commissioner with the approval of the Secretary may by regulations prescribe.

Sec. 1203. (b) Time for filing.

Sec. 1203. (b) (1) General rule.-Such return shall be made within one month after the close of the year with respect to which such tax is imposed.

Sec. 1203. (b) (2) Extension of time.-The Commissioner may extend the time for making the returns, under such rules and regulations as he may prescribe with the approval of the Secretary, but no such extension shall be for more than sixty days. With respect to the years ended June 30, 1941, and June 30, 1942 the extension may be for not more than ninety days.

Sec. 1203. (c) Place for filing.-The return shall be made to the collector for the district in which is located the principal place of business of the corporation, or, if it has no principal place of business in the United States, then to the collector at Baltimore, Maryland.

Sec. 1204. Publicity of returns.

Returns required to be filed for the purpose of the tax imposed by section 1200 shall be open to inspection in the same manner, to the same extent, and subject to the same provisions of law, including penalties, as returns made under chapter 1, except that paragraph (2) of subsections (b) and (f) of section 55 shall not apply.

Sec. 1205. Payment of tax.

Sec. 1205. (a) Time of payment.-The tax shall, without assessment by the Commissioner or notice

Effective with respect to years ending after June 30, 1945, chapter 6 (imposing the capital stock tax) is repealed.

from the collector, be due and payable to the collector before the expiration of the period for filing the return.

Sec. 1205. (b) Extension of time.-The Commissioner may extend the time for paying the taxes imposed by section 1200, under such rules and regulations as he may prescribe with the approval of the Secretary, but no such extension shall be for more than sixty days.

Sec. 1206. Addition to the tax in case of delinquency.

If the tax is not paid when due, there shall be

added as part of the tax interest at the rate of 6 per centum per annum from the time when the tax became due until paid.

Sec. 1207. Other laws applicable.

All provisions of law (including penalties) applicable in respect of the taxes imposed by section 2700 shall, insofar as not inconsistent with this chapter, be applicable in respect of the taxes imposed by section 1200.

Repeal of capital stock tax

Chapter 6, including Secs. 1200-1207, I. R. C., supra, repealed with respect to years ending after June 30, 1945, by Sec. 201, R. A. of 1945. See fn. 22 below Sec. 1200, supra.

Sec. 1250. Imposition of tax.

There shall be imposed upon the transfer of stock or securities by a citizen or resident of the United States, or by a domestic corporation or partnership, or by a trust which is not a foreign trust, to a foreign corporation as paid-in surplus or as a contribution to capital, or to a foreign trust, or to a foreign partnership, an excise tax equal to 272 per centum of the excess of (1) the value of the stock or securities so transferred over (2) its adjusted basis in the hands of the transferor as determined under section 113 of the Revenue Act of 1932, 47 Stat. 198.

Sec. 1251. Nontaxable transfers.

The tax imposed by section 1250 shall not apply— (a) if the transferee is an organization exempt from income tax under section 103 of the Revenue Act of 1932; or

(b) if prior to the transfer it has been established to the satisfaction of the Commissioner that such transfer is not in pursuance of a plan having as one of its principal purposes the avoidance of Federal income taxes.

Sec. 1252. Definition of "foreign trust."

A trust shall be considered a foreign trust within the meaning of this chapter if, assuming a subsequent sale by the trustee, outside the United States and for cash, of the property so transferred, the profit, if any, from such sale would not be included

in the gross income of the trust under Title I of the Revenue Act of 1932.

Sec. 1253. Payment and collection.

Sec. 1253. (a) The tax imposed by section 1250 shall, without assessment or notice and demand, be due and payable by the transferor at the time of the transfer, and shall be assessed, collected, and paid under regulations prescribed by the Commissioner with the approval of the Secretary.

Sec. 1253. (b) Under regulations prescribed by the Commissioner with the approval of the Secretary the tax may be abated, remitted, or refunded if after the transfer it has been established to the satisfaction of the Commissioner that such transfer was not in pursuance of a plan having as one of its principal purposes the avoidance of Federal income taxes.

Sec. 1253. (c) All administrative, special, or stamp provisions of law, including penalties and including the law relating to the assessment of taxes, so far as applicable, shall be extended to and made a part of this chapter.

Sec. 1254. Publicity of returns.

For provisions with respect to publicity of returns
under this chapter, see subsection (a) (2) of sec-
tion 55.

Secs. 1250-1254, I. R. C., supra, originated 1939
as Secs. 1250-1254, I. R. C.
For any amendments prior to 1944, see-
Ninth Edition, p. 1138.

Sec. 1300. Rate of tax.

There shall be levied and collected, for each taxable year beginning after December 31, 1938, a tax of one per centum on the gross annual income of all railroad corporations doing business in Alaska, on business done in Alaska.

Sec. 1301. Assessment and collection of tax. The tax imposed by section 1300 shall be computed and collected in the manner provided in section II of the act of October 3, 1913, c. 16, 38 Stat. 114, 174. The proceeds of such tax when collected shall be deposited into the Treasury as miscellaneous

receipts, and amounts equal thereto are (1) authorized to be appropriated annually from the general fund of the Treasury, (2) paid to the treasurer of Alaska, and (3) made applicable to general Territorial purposes. If the total of receipts for any fiscal year is greater than the amount appropriated for the payment of such receipts to the Alaskan government, such excess is authorized to be appropriated for the following fiscal year.

Secs. 1300, 1301, I. R. C., supra, originated 1939 as Secs. 1300, 1301, I. R. C.

For any amendments prior to 1944, see-

Ninth Edition, p. 1139.

Sec. 1621. Definitions.23

As used in this subchapter

Sec. 1621. (a) Wages.-The term "wages" means all remuneration (other than fees paid to a public official) for services performed by an employee for his employer, including the cash value of all remuneration paid in any medium other than cash; except that such term shall not include remuneration paid

Sec. 1621. (a) (2) for agricultural labor (as defined in section 1426 (h)), or

Sec. 1621. (a) (3) for domestic service in a private home, local college club, or local chapter of a college fraternity or sorority, or

Sec. 1621. (a) (4) for casual labor not in the course of the employer's trade or business, or

Sec. 1621. (a) (5) for services by a citizen or resident of the United States for a foreign government or an international organization or for the government of the Commonwealth of the Philippines, or

Sec. 1621. (a) (6) for services performed by a nonresident alien individual, other than a resident of a contiguous country who enters and leaves the United States at frequent intervals, or

Sec. 1621. (a) (7) for such services, performed by a nonresident alien individual who is a resident of a contiguous country and who enters and leaves the United States at frequent intervals, as may be designated by regulations prescribed by the Commissioner with the approval of the Secretary, or

Sec. 1621. (a) (8) (A) for services for an employer (other than the United States or any agency thereof) performed by a citizen of the United States, if it is reasonable to believe that during the entire calendar year the employee will be a bona fide resident of a foreign country or countries, or

Sec. 1621. (a) (8) (B) for services for an employer performed within a possession of the United States by a citizen of the United States, if it is reasonable to believe that at least 80 per centum of the remuneration to be paid to the employee by such employer during the calendar year will be for such services, or

Sec. 1621. (a) (9) for services performed as a minister of the gospel.

Sec. 1621. (b) Payroll period.-The term "payroll period" means a period for which a payment of wages is ordinarily made to the employee by his employer, and the term "miscellaneous payroll period" means a payroll period other than a daily, weekly, biweekly, semimonthly, monthly, quarterly, semiannual, or annual payroll period.

23 Sections 1621 to 1632, inclusive, were in effect during 1949. From 1944 to 1949 there were a few amendments, including amendments of long Tax Tables. These amendments were not incorporated into this Edition, as the With

Sec. 1621. (c) Employee.-The term "employee" includes an officer, employee, or elected official of the United States, a State, Territory, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing. The term "employee" also includes an officer of a corporation.

Sec. 1621. (d) Employer.-The term "employer" means the person for whom an individual performs or performed any service, of whatever nature, as the employee of such person, except that—

Sec. 1621. (d) (1) if the person for whom the individual performs or performed the services does not have control of the payment of the wages for such services, the term "employer" (except for the purposes of subsection (a)) means the person having control of the payment of such wages; and

Sec. 1621. (d) (2) in the case of a person paying wages on behalf of a nonresident alien individual, foreign partnership, or foreign corporation, not engaged in trade or business within the United States, the term "employer" (except for the purposes of subsection (a)) means such person.

Sec. 1621. (e) Number of withholding exemptions claimed.-The term "number of withholding exemptions claimed" means the number of withholding exemptions claimed in a withholding exemption certificate in effect under section 1622 (h), except that if no such certificate is in effect, the number of withholding exemptions claimed shall be considered. to be zero.

Sec. 1622. Income tax collected at source. 23

Sec. 1622. (a) Requirement of withholding.— Every employer making payment of wages shall deduct and withhold upon such wages a tax equal to 15 per centum of the amount by which the wages exceed the number of withholding exemptions claimed multiplied by the amount of one such exemption as shown in subsection (b) (1).

Sec. 1622. (b) Withholding exemption.

Sec. 1622. (b) (1) The table referred to in subsection (a) is as follows:

Percentage method withholding table

Sec. 1622. (b) (2) If wages are paid with respect to a period which is not a payroll period, the withholding exemption allowable with respect to each payment of such wages shall be the exemption allowed for a miscellaneous payroll period containing a number of days (including Sundays and holidays) equal to the number of days in the period with respect to which such wages are paid.

Sec. 1622. (b) (3) In any case in which wages are paid by an employer without regard to any payroll period or other period, the withholding exemption allowable with respect to each payment of such wages shall be the exemption allowed for a miscellaneous payroll period containing a number of days. equal to the number of days (including Sundays and holidays) which have elapsed since the date of the last payment of such wages by such employer during the calendar year, or the date of commencement of employment with such employer during such year, or January 1 of such year, whichever is the later.

Sec. 1622. (b) (4) In any case in which the period, or the time described in paragraph (3), in respect of any wages is less than one week, the Commissioner, under regulations prescribed by him with the approval of the Secretary, may authorize an employer, in computing the tax required to be deducted and withheld, to use the excess of the aggregate of the wages paid to the employee during the calendar week over the withholding exemption allowed by this subsection for a weekly payroll period.

Sec. 1622. (b) (5) In determining the amount to be deducted and withheld under this subsection, the wages may, at the election of the employer, be computed to the nearest dollar.

Sec. 1622. (c) Wage bracket withholding.—

Sec. 1622. (c) (1) At the election of the employer with respect to any employee, the employer shall deduct and withhold upon the wages paid to such employee a tax determined in accordance with the following tables, which shall be in lieu of the tax required to be deducted and withheld under subsection (a):

See fn. 23.

Sec. 1622. (c) (2) If wages are paid with respect to a period which is not a payroll period the amount to be deducted and withheld shall be that applicable in the case of a miscellaneous payroll period containing a number of days (including Sundays and holidays) equal to the number of days in the period with respect to which such wages are paid.

Sec. 1622. (c) (3) In any case in which wages are paid by an employer without regard to any payroll period or other period, the amount to be deducted and withheld shall be that applicable in the case of a miscellaneous payroll period containing a number of days equal to the number of days (including Sundays and holidays) which have elapsed since the date of the last payment of such wages by such employer during the calendar year, or the date of commencement of employment with such employer during such year, or January 1 of such year, whichever is the later.

Sec. 1622. (c) (4) In any case in which the period, or the time described in paragraph (3), in respect of any wages is less than one week, the Commissioner, under regulations prescribed by him with the approval of the Secretary, may authorize an employer to determine the amount to be deducted and withheld under the tables applicable in the case of a weekly payroll period, in which case the aggregate of the wages paid to the employee during the calendar week shall be considered the weekly wages.

Sec. 1622. (c) (5) If the wages exceed the highest wage bracket, in determining the amount to be deducted and withheld under this subsection, the wages may, at the election of the employer, be computed to the nearest dollar.

Sec. 1622. (d) Tax paid by recipient.-If the employer, in violation of the provisions of this subchapter, fails to deduct and withhold the tax under this subchapter, and thereafter the tax against which such tax may be credited is paid, the tax so required to be deducted and withheld shall not be collected from the employer; but this subsection shall in no case relieve the employer from liability for any penalties or additions to the tax otherwise applicable in respect of such failure to deduct and withhold.

Sec. 1622. (e) Nondeductibility of tax in computing net income.-The tax deducted and withheld under this subchapter shall not be allowed as a deduction either to the employer or to the recipient of the income in computing net income for the purpose of any tax on income imposed by Act of Con

gress.

Sec. 1622. (f) Refunds or credits.

Sec. 1622. (f) (1) Employers.-Where there has been an overpayment of tax under this subchapter, refund or credit shall be made to the employer only to the extent that the amount of such overpayment was not deducted and withheld under this subchapter by the employer.

Sec. 1622. (f) (2) Employees.-For refund or credit in cases of excessive withholding, see section 322 (a).

Sec. 1622. (g) Included and excluded wages.—If the remuneration paid by an employer to an employee for services performed during one-half or more of any payroll period of not more than thirtyone consecutive days constitutes wages, all the remuneration paid by such employer to such employee for such period shall be deemed to be wages; but if the remuneration paid by an employer to an employee for services performed during more than onehalf of any such payroll period does not constitute wages, then none of the remuneration paid by such employer to such employee for such period shall be deemed to be wages.

Sec. 1622. (h) Withholding exemptions.—

Sec. 1622. (h) (1) In general.-An employee receiving wages shall on any day be entitled to the following withholding exemptions:

(A) An exemption for himself.