Seer 3776, Reports to Congress of refunds in excess of $500,

The Commissioner shall make report to Congress, at the beginning of each regular session by internal revenue districts and alphabetically arranged, of all disbursements in excess of $500 under section 8770 (a) (1) and (b).

Sec. 3776, I. R. C., supra, repealed by Sec. 10 (a), (Public Law 271) Act of Aug. 27, 1949.

Sec. 3777. Reports of refunds and credits in excess of $75,000 $200,000.

Sec. 3777. (a) By Commissioner to Joint Committee.-No refund or credit of any income, warprofits, excess-profits, estate, or gift tax in excess of $75,000 $200,000 shall be made until after the expiration of thirty days from the date upon which a report giving the name of the person to whom the refund or credit is to be made, the amount of such refund or credit, and a summary of the facts and the decision of the Commissioner is submitted to the Joint Committee on Internal Revenue Taxation.

Sec. 3777. (b) By Joint Committee to Congress. -A report to Congress shall be made annually by such committee of such refunds and credits, including the names of all persons and corporations to whom amounts are credited or payments are made, together with the amounts credited or paid to each.

Sec. 3777. (c) Tentative adjustments.-Any credit or refund allowed or made under section 3780 (b) or under Section 124 (k) shall be made without regard to the provisions of subsection (a). In any such case, if the credit or refund, reduced by any deficiency in such tax thereafter assessed and by deficiencies in any other tax resulting from adjustments reflected in the determination of the credit or refund, is in excess of $75,000 $200,000, there shall be submitted to such committee a report containing the matter specified in subsection (a) at such time after the making of the credit or refund as the Commissioner shall determine the correct amount of the tax.

Sec. 3777, I. R. C., amended by Sec. 4 (c), T. A. A. of 1945, approved July 31, 1945, by adding Sec. 3777 (c), I. R. C.

Second amendment

Sec. 3777 (c), I. R. C., was amended to read as above by Sec. 151, R. A. of 1945, approved Nov. 8, 1945. The only changes made by the latter amendment were to strike out the words "carry-back" from the heading and to insert after "section 3780 (b)" the words "or under section 124 (k)".

Third amendment

Sec. 3777, I. R. C., further amended by Sec. 10 (b), (Public Law 271), Act of Aug. 27, 1949, by striking out $75,000 and inserting in lieu thereof $200,000.

Sec. 3778. Cross reference.

For remission of tax against insolvent banks, see section 3798.

Sec. 3779. Extensions of time for payment of taxes by corporations expecting carry-backs.

Sec. 3779. (a) In general.-If a corporation, in any taxable year ending on or after September 30, 1945, files with the collector a statement, as provided in subsection (b), with respect to an expected net operating loss carry-back or unused excess profits credit carry-back from such taxable year, the time for payment of all or part of any tax imposed by chapter 1 or 2 for the taxable year immediately preceding such taxable year shall be extended, to the extent and subject to the conditions and limitations hereinafter provided in this section.

Sec. 3779. (b) Contents of statement.-The statement with respect to an expected carry-back referred to in subsection (a) of this section shall be sworn to in the manner prescribed by section 52 in the case of a return and shall be filed at such time and in such manner and form as the Commissioner, with the approval of the Secretary, may by regulations prescribe. Such statement shall set forth that the corporation expects to have a net operating loss carry-back, as provided in section 122 (b), or an unused excess profits credit carry-back, as provided in section 710 (c) (3), from the taxable year in which such statement is made, and shall set forth, in such detail and with such supporting data and explanation as such regulations shall require

(1) the estimated amount of the expected net operating loss or unused excess profits credit;

(2) the reasons, facts, and circumstances which cause the corporation to expect such net operating loss or unused excess profits credit;

(3) the amount of the reduction, attributable to the expected carry-back, in the aggregate of the taxes previously determined for all taxable years affected by the carry-back prior to the taxable year of the expected loss or unused credit; such taxes previously determined being ascertained in accord-' ance with the method prescribed in section 3801 (d); and such reduction being determined by applying the expected carry-back in the manner provided by law to the items on the basis of which such taxes were determined but such reduction being decreased by the amount of any credits under section 780 properly allocable to such reduction;

(4) the tax or taxes and the amount thereof the time for payment of which is to be extended; and

(5) such other information for the purpose of carrying out the provisions of this section as may be required by such regulations.

The collector shall, upon request, furnish a receipt for any statement filed, which shall set forth the date of such filing.

Sec. 3779. (c) Amount to which extension relates and installment payments.-The amount the time for payment of which may be extended under subsection (a) with respect to any tax shall not exceed the amount of such tax shown on the return, increased by any amount assessed as a deficiency (or as interest or additions to the tax) prior to the date of filing the statement and decreased by any amount paid or required to be paid prior to the date of such filing, and the total amount of the taxes the time for payment of which may be extended shall not exceed the amount stated under clause (3) of

subsection (b). For the purposes of this subsection, an amount shall not be considered as required to be paid unless shown on the return or assessed as a deficiency (or as interest or addition to the tax), and an amount assessed as a deficiency (or as interest or additions to the tax) shall be considered to be required to be paid prior to the date of filing of the statement if the tenth day after notice and demand for its payment occurs prior to such date. If an extension of time under this section relates to only a part of a tax, the time for payment of the remainder shall be considered to be the dates on which payments would have been required if such remainder had been the tax and the taxpayer had elected to pay the tax in four equal instalments as provided in section 56 (b).

Sec. 3779. (d) Period of extension.-The extension of time for payment provided in this section shall expire

(1) on the last day of the month in which falls the last date prescribed by law (including any extension of time granted the taxpayer) for the filing of the return for the taxable year of the expected net operating loss or unused excess profits credit, or (2) if an application for tentative carry-back adjustment provided in section 3780 with respect to such loss or unused credit is filed before the expiration of the period prescribed in clause (1), on the date on which notice is mailed by registered mail by the Commissioner to the taxpayer that such application is allowed or disallowed in whole or in part.

Sec. 3779. (e) Revised statements.-Each statement filed under subsection (a) with respect to any taxable year shall be in lieu of the last statement previously filed with respect to such year. If the amount the time for payment of which is extended under a statement filed is less than the amount under the last statement previously filed the extension of time shall be terminated as to the difference between the two amounts.

Sec. 3779. (f) Termination by Commissioner.The Commissioner is not required to make any examination of the statement, but he may make such examination thereof as he deems necessary and practicable. The Commissioner shall terminate the extension as to any part of the amount to which it relates which he deems should be terminated because, upon such examination, he believes that, as of the time such examination is made, all or any part of the statement clearly is in a material respect erroneous or unreasonable.

Sec. 3779. (g) Payments on termination.-If an extension of time is terminated under subsection (e) or (f) with respect to any amount, then

(1) no further extension of time shall be made under this section with respect to such amount, and (2) the time for payment of such amount shall be considered to be the dates on which payments would have been required if there had been no extension with respect to such amount and the taxpayer had elected to pay the tax in four equal instalments as provided in section 56 (b).

Sec. 3779. (h) Jeopardy.-If the Commissioner believes that collection of the amount to which an extension under this section relates is in jeopardy, he shall immediately terminate such extension and notice and demand shall be made by the collector for payment of such amount.

Sec. 3779. (i) Interest.—In the case of an amount the time for payment of which has been extended, there shall be collected as part of such amount interest from the dates on which payments would have been required if there had been no extension and the taxpayer had elected to pay the tax in four equal instalments as provided in section 56 (b)—

(1) upon so much of such amount as is satisfied under section 3780 (b) by applying or crediting thereto, within the period of extension, a decrease in tax determined in connection with an application under section 3780 (a), interest at the rate of 3 per centum per annum to the date of such satisfaction, except that on so much of such satisfied amount as is not in excess of the amount of the deficiencies assessed under section 3780 (b) and which is not so satisfied, the rate shall be 6 per centum per annum;

and

(2) upon the remainder of the amount the time for payment of which has been extended, interest at the rate of 6 per centum per annum to the date such amount is paid.

If the Commissioner determines that during the period of extension credit or refund of an overpayment has been allowed or made, or a deficiency assessed, affecting the amount to which the extension relates and that the taxpayer could not have taken such overpayment or deficiency into account in the statement or a revised statement, appropriate adjustment shall be made in the interest.

Sec. 3779, I. R. C., supra, added to I. R. C. by Sec. 4, T. A. A. of 1945, approved July 31, 1945. Sec. 3780. Tentative carry-back adjustments. Sec. 3780. (a) Application for adjustment.-A taxpayer may file an application for a tentative carry-back adjustment of the taxes for prior taxable years affected by a net operating loss carry-back, provided in section 122 (b), or an unused excess profits credit carry-back, provided in section 710 (c) (3), from any taxable year ending on or after September 30, 1945. The application shall be verified in the manner prescribed by section 51 or section 52 in the case of a return of such taxpayer, and shall be filed, on or after the date of filing of the return for the taxable year of the net operating loss or unused excess profits credit from which the carryback results and within a period of twelve months from the end of such taxable year, in the manner and form required by regulations prescribed by the Commissioner with the approval of the Secretary. The application shall set forth, in such detail and with such supporting data and explanation as such regulations shall require

(1) the amount of the net operating loss or unused excess profits credit;

(2) the amount of the tax previously determined for each prior taxable year affected by such carryback; the tax previously determined being ascer

tained in accordance with the method prescribed in section 3801 (d);

(3) the amount of increase or decrease in each such tax, attributable to such carry-back; such increase or decrease being determined by applying the carry-back in the manner provided by law to the items on the basis of which such taxes were determined. If an application under section 124 (j) for tentative adjustment of tax with respect to amortization has been previously filed but such adjustment has not been previously determined, then for the purposes of this section the assessments, applications, credits, and refunds provided for in section 124 (k) shall be considered as having previously been made upon the basis of such application under section 124 (j);

(4) the amount by which the aggregate of such decreases exceeds the aggregate of such increases;

(5) the unpaid amount of each such tax, not including any amount required to be shown under paragraph (6);

(6) the amount, with respect to each tax for the taxable year immediately preceding the taxable year of such loss or unused credit, as to which an extension of time for payment under section 3779 is in effect; and

(7) such other information for the purposes of carrying out the provisions of this section as may be required by such regulations.

An application under this subsection shall not constitute a claim for credit or refund.

Sec. 3780. (b) Allowance of adjustments.Within a period of ninety days from the date on which an application for a tentative carry-back adjustment is filed under subsection (a), or from the last day of the month in which falls the last date prescribed by law (including any extension of time granted the taxpayer) for filing the return for the taxable year of the net operating loss or unused excess profits credit from which such carry-back results, whichever is the later, the Commissioner shall make, to the extent he deems practicable in such period, a limited examination of the application, to discover omissions and errors of computation therein, and shall determine the amount of the increase or decrease in each tax attributable to such carryback upon the basis of the application and the examination, except that the Commissioner may disallow, without further action, any application which he finds contains errors of computation which he deems cannot be corrected by him within such ninety-day period or material omissions. Each such increase shall be deemed determined as a deficiency and shall be assessed, without regard to the restrictions on assessment in section 272. Each such decrease shall be applied against any unpaid amount

of the tax decreased (including any amount of such tax as to which an extension of time under section 3779 is in effect) and any remainder shall be credited

(1) against the deficiencies (and additions to the tax) assessed under this subsection,

(2) against any unsatisfied amount of any tax for the taxable year immediately preceding the taxable year of the net operating loss or unused excess profits credit the time for payment of which tax is extended under section 3779, and

any remainder shall, within such ninety-day period, be either credited against any income, war profits, or excess profits tax or instalment thereof then due from the taxpayer, or refunded to the taxpayer. The application, credit or refund of a decrease determined under this subsection shall be deemed a credit or refund of an overpayment within the meaning of sections 781 (b) and 3807 (b) (1).

Sec. 3780. (c) Assessment of erroneous allowances.-If the Commissioner determines that the amount applied, credited or refunded under subsection (b) is in excess of the overassessment attributable to the carry-back with respect to which such amount was applied, credited or refunded, he may assess the amount of the excess as a deficiency as if it were due to a mathematical error appearing on the face of the return, as provided in section 272 (f). Upon making such assessment, the Commissioner shall schedule as an overassessment the decrease in any other tax resulting from the adjustments reflected in the computation of the deficiency. Sec. 3780, I. R. C.. supra, added to I. R. C. by Sec. 4, T. A. A. of 1945, approved July 31, 1945.

Sec. 3781. Extension of time and tentative carry-back and amortization adjustments in the case of consolidated returns.

If the corporation seeking an extension of time under section 3779, a tentative carry-back adjustment under section 3780, or a tentative adjustment with respect to an amortization deduction under section 124 (j) and (k), made or was required to make a consolidated return, either for the taxable year within which the net operating loss or the unused excess profits credit arises or within which the election is made to terminate the amortization period, or for a preceding taxable year affected by such loss, credit, or election, the provisions of such sections shall apply only to such extent and subject to such conditions, limitations, and exceptions as the Commissioner, with the approval of the Secretary, may by regulations prescribe.

Sec. 3781, I. R. C., supra, added to I. R. C. by
Sec. 4, T. A. A. of 1945, approved July 31, 1945.

Sec. 3790.

In the absence of fraud or mistake in mathematical calculation, the findings of facts in and the decision of the Commissioner upon (or in case the Secretary is authorized to approve the same, then after

such approval) the merits of any claim presented under or authorized by the internal revenue laws shall not, except as provided in chapter 5, be subject to review by any other administrative or accounting officer, employee, or agent of the United States. In the absence of fraud or mistake in mathematical

calculation, the allowance or nonallowance by the Commissioner, of interest on any credit or refund under the internal revenue laws shall not, except as provided in Chapter 5, be subject to review by any other administrative or accounting officer, employee, or agent of the United States.

Sec. 3791. Rules and regulations.

Sec. 3791. (a) Authorization.—

Sec. 3791. (a) (1) In general.-Except as provided in section 1928 (a), Cotton Futures, section 2599, Marihuana, section 2559, Narcotics, section 3176, Liquor, and section 1805, Silver, the Commissioner, with the approval of the Secretary, shall prescribe and publish all needful rules and regulations for the enforcement of this title.

Sec. 3791. (a) (2) In case of change in law.The Commissioner may make all such regulations, not otherwise provided for, as may have become necessary by reason of any alteration of law in relation to internal revenue.

Sec. 3791. (b) Retroactivity of regulations or rulings.-The Secretary, or the Commissioner with the approval of the Secretary, may prescribe the extent, if any, to which any ruling, regulation, or Treasury Decision, relating to the internal revenue laws, shall be applied without retroactive effect.

Sec. 3792. Expenses of detection and punishment of frauds.

The Commissioner, under regulations prescribed by him with the approval of the Secretary, is authorized to pay such sums, not exceeding in the aggregate the sum appropriated therefor, as he may deem necessary for detecting and bringing to trial and punishment persons guilty of violating the internal revenue laws, or conniving at the same, in cases where such expenses are not otherwise provided for by law.

Sec. 3792, I. R. C., supra, amended by Sec. 12, (Public Law 271) Act of Aug. 27, 1949.

Sec. 3793. (b) Fraudulent returns, affidavits, and claims.

Sec. 3793. (b) (1) Assistance in preparation or presentation.-Any person who willfully aids or assists in, or procures, counsels, or advises the preparation or presentation under, or in connection with any matter arising under, the internal revenue laws, of a false or fraudulent return, affidavit, claim, or document, shall (whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document) be guilty of a felony, and, upon conviction thereof, be fined not more than $10,000, or imprisoned for not more than five years, or both, together with the costs of prosecution.

Sec. 3793. (b) (2) Person defined.-The term "person" as used in this subsection includes an officer or employee of a corporation or a member or employee of a partnership, who as such officer, employee, or member is under a duty to perform the act in respect of which the violation occurs.

Sec. 3793. (c) Cross references.-
Sec. 3793. (c) (1) Penalties.—

For other penalties under this subtitle, see the
following sections:

Refusal to permit entry or examinations, 3601 (b);
Forcibly obstructing officers, 3601 (c);

Forcibly rescuing property, 3601 (c);

Failure to file return, 3612 (d) (1);

False or fraudulent return, 3612 (d) (2);
Nonpayment of tax, 3655 (b);

Failure to surrender property subject to distraint,
3710 (b);

Fraud in connection with closing agreements and compromises, 3763.

Sec. 3793. (c) (2) Forfeitures.

For other forfeitures under this subtitle, see the following:

Sales or removals in fraud of internal revenue laws, section 3720 (a);

Sales or removals with design to avoid payment of taxes, section 3720 (a).

Sec. 3794. Interest on delinquent taxes. Notwithstanding any provision of law to the contrary, interest accruing during any period of time after August 30, 1935, upon any internal-revenue tax (including amounts assessed or collected as a part thereof) not paid when due, shall be at the rate of 6 per centum per annum.

Sec. 3797. Defnitions.

Sec. 3797. (a) When used in this title, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof

Sec. 3797. (a) (1) Person.-The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, company, or corporation.

Sec. 3797. (a) (2) Partnership and partner.The term "partnership" includes a syndicate, group, pool, joint venture, or other unincorporated organization, through or by means of which any business, financial operation, or venture is carried on, and

which is not, within the meaning of this title, a trust or estate or a corporation; and the term “partner" includes a member in such a syndicate, group, pool, joint venture, or organization.

Sec. 3797. (a) (3) Corporation.-The term "corporation" includes associations, joint-stock companies, and insurance companies.

Sec. 3797. (a) (4) Domestic.-The term "domestic" when applied to a corporation or a partnership means created or organized in the United States or under the law of the United States or of any State or Territory.

Sec. 3797. (a) (5) Foreign.-The term "foreign" when applied to a corporation or partnership means a corporation or partnership which is not domestic.

Sec. 3797. (a) (6) Fiduciary.—The term "fiduciary" means a guardian, trustee, executor, administrator, receiver, conservator, or any person acting in any fiduciary capacity for any person.

Sec. 3797. (a) (7) Stock.-The term "stock" includes the share in an association, joint-stock company, or insurance company.

term

Sec. 3797. (a) (8) Shareholder.-The "shareholder" includes a member in an association, joint-stock company, or insurance company.

Sec. 3797. (a) (9) United States.-The term "United States" when used in a geographical sense includes only the States, the Territories of Alaska and Hawaii, and. District of Columbia.

Sec. 3797. (a) (10) State.-The word "State" shall be construed to include the Territories and the District of Columbia, where such construction is necessary to carry out provisions of this title.

Sec. 3797. (a) (11) Secretary.-The term "Secretary" means the Secretary of the Treasury.

Sec. 3797. (a) (12) Commissioner.-The term "Commissioner" means the Commissioner of Internal Revenue.

Sec. 3797. (a) (13) Collector.-The term "collector" means collector of internal revenue.

Sec. 3797. (a) (14) Taxpayer.-The term "taxpayer" means any person subject to a tax imposed by this title.

Sec. 3797. (a) (15) Military or naval forces of the United States.-The term "military or naval forces of the United States" includes the Marine Corps, the Coast Guard, the Army Nurse Corps, Female, the Women's Army Auxiliary Corps, the Navy Nurse Corps, Female, and the Women's Reserve branch of the Naval Reserve.

Sec. 3797. (a) (16) Withholding agent.-The term "withholding agent" means any person required to deduct and withhold any tax under the provisions of section 143 or 144.

Sec. 3797. (a) (17) Husband and wife.-As used in sections 22 (k), 23 (u), 95 (b) (2) (A), and 171, and the last sentence of section 401 (a) (2) 171, and the last sentence of section 25 (b) (3), if the

husband and wife therein referred to are divorced, wherever appropriate to the meaning of such sections, the term "wife" shall be read "former wife” and the term "husband" shall be read "former husband"; and if the payments described in such sections are made by or on behalf of the wife or former wife to the husband or former husband instead of vice versa, wherever appropriate to the meaning of such sections, the term "husband" shall be read "wife" and the term "wife" shall be read "husband."

Sec. 3797 (a) (17), I. R. C., supra, amended by Sec. 10 (1), I. I. T. A. of 1944, by omitting language in stricken-through type and adding language in italics. Sec. 2 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1943. Sec. 3797. (a) (18) International organization. -The term "international organization" means a public international organization entitled to enjoy privileges, exemptions, and immunities as an international organization under the International Organizations Immunities Act.

Sec. 3797, I. R. C., supra, amended by paragraph 4 (1), Public Law 291, Act of Dec. 29, 1945, by adding paragraph (a) (18), supra.

Sec. 3797. (b) Includes and including.—The terms "includes" and "including" when used in a definition contained in this title shall not be deemed to exclude other things otherwise within the meaning of the term defined.

Sec. 3797. (c) Cross references.

For other definitions, see the following:
Singular as including plural, R. S. 1 (U. S. C.,
Title 1, § 1).

Plural as including singular, R. S. 1 (U. S. C.,
Title 1, 1).

Masculine as including feminine, R. S. 1 (U. S. C.,
Title 1, § 1).

Officer, R. S. 1 (U. S. C., Title 1, § 1).

Oath as including affirmation, R. S. 1 (U. S. C.,
Title 1, § 1).

Company or association as including successors
and assigns, R. S. 5 (U. S. C., Title 1, § 5).

County as including parish, R. S. 2 (U. S. C., Title 1, § 2).

Vessel as including all means of water transportation, R. S. 3 (U. S. C., Title 1, § 3).

Vehicle as including all means of land transportation, R. S. 4 (U. S. C., Title 1, § 4).

Sec. 3800. Jurisdiction of district courts to issue orders, processes, and judgments.

The district courts of the United States at the instance of the United States shall have such jurisdiction to make and issue, both in actions at law and suits in equity, writs and orders of injunction, and of ne exeat republica, orders appointing receivers, and such other orders and process, and to render such judgments and decrees, granting in proper cases both legal and equitable relief together, as may be necessary or appropriate for the enforcement of the internal revenue laws. The remedies hereby provided are in addition to and not exclusive of any and all other remedies of the United States in such courts or otherwise to enforce such laws.

Sec. 3801. Mitigation of effect of limitation and other provisions in income tax cases.

Sec. 3801. (a) Definitions.-For the purpose of this section