(2) the amount of rebates, as defined in section 271 (b) (2), made. The amount of the tax-proviously determined shall be (A) the tax shown by the taxpayer upon his return for such taxable year, inereased by the amounts previously assessed (or-eelleeted without assessment) as deficiencies, and de ereased by the amounts previously abated, eredited, refunded, or otherwise repaid in respect of such tax; or (B) if no amount was shown as the tax by such taxpayer upon his return, or if no return was made by such taxpayer, then the amounts previously as sessed for collected without assessment) a defi ciencies, but such amounts previously assessed, or collected without assessment, shall be decreased by the amounts previously abated, eredited, refunded, or otherwise repaid in respect of such tax. There shall then be ascertained the decrease in tax previously determined which results solely from the application of paragraph (1) or paragraph (2) of subsection (a) to the prior taxable year. The amount so ascertained, together with any amounts collected as additions to the tax or interest, as a result of paragraph (1) or paragraph (2) of subsection (a) not having been applied to the prior taxable year shall be the amount by which such tax is decreased.

Sec. 3806. (b) (3) (4) Interest.-In determining the amount of the credit under this subsection no interest shall be allowed with respect to the amount ascertained under paragraph (1) or paragraph (2); except that if interest is charged by the United States or the agency thereof on account of the disallowance for any period before the date of the payment, repayment, or offset, the credit shall be increased by an amount equal to interest on the amount ascertained under either such paragraph at the same rate and for the period (prior to the date of the payment, repayment, or offset) as interest is so charged.

Sec. 3806. (c) Credit in lieu of other credit or refund.-If a credit is allowed under subsection (b) with respect to a prior taxable year no other credit or refund under the internal-revenue laws founded on the application of subsection (a) shall be made on account of the amount allowed with respect to such taxable year. If the amount allowable as a credit under subsection (b) exceeds the amount allowed under such subsection, the excess shall, for the purposes of the internal-revenue laws relating to credit or refund of tax, be treated as an overpayment for the prior taxable year which was made at the time the payment, repayment, or offset was made.

Sec. 3807. Period of limitations in case of related taxes under chapter 1 and chapter 2.Sec. 3807. (a) Definitions.-As used in this section

Sec. 3807. (a) (1) The term “tax previously determined" shall have the meaning assigned to such term by section 3801 (d).

Sec. 3807. (a) (2) The term "the same taxable year" shall include any taxable year which coincides in whole or in part with the taxable year for which the determination referred to in subsection (b) is made.

Sec. 3807. (b) Extension of period of limitations.—If—

Sec. 3807. (b) (1) under a determination in respect of a tax imposed by chapter 1 or chapter 2, a deficiency is assessed or a credit or refund of an overpayment is allowed, within the period of limitations properly applicable thereto, and

Sec. 3807. (b) (2) the application of the law or facts determined in the ascertainment of such deficiency or overpayment to any other such tax of the taxpayer under chapter 1 or chapter 2 for the same taxable year would result in an increase or decrease respect of such other tax, and in the amount of the tax previously determined in respect of such other tax, and

Sec. 3807. (b) (3) on any date prior to the expiration of one year from the assessment of a deficiency or the allowance of a credit or refund in respect of the tax referred to in paragraph (1), the assessment of a deficiency or the allowance of a credit or refund in respect of the tax referred to in paragraph (2) is prevented (except for the provisions of section 3801 or 734) by the operation (whether before, on, or after the date of enactment of the Revenue Act of 1943) of any law or rule of law other than this section and other than section 3761 (relating to compromises)

then upon such date the increase or decrease in the tax referred to in paragraph (2) shall be considered a deficiency or an overpayment, as the case may be. Such deficiency may be assessed and collected or such overpayment may be credited or refunded as if on the date the deficiency is assessed or the credits or refund allowed in respect of the tax referred to in paragraph (1) one year remained before the expiration of the periods of limitation upon assessment or filing claim for refund in respect of the tax referred to in paragraph (2) for the same taxable year.

Sec. 3807. (c) Adjustment unaffected by other items, etc.-In determining whether an increase or decrease in the amount of the tax previously determined shall be considered to result from the application of the law or facts under a determination referred to in subsection (b) (1) changes shall be made in items which are the subject of such determination and in items which are affected thereby, and in no others. The amount which may be assessed or allowed as a credit or refund under subsection (b) shall not be diminished by any credit or set-off based upon any item which was not the subject of such determination or affected thereby. Such amount, if paid, shall not be recovered by a claim or suit for refund or suit for erroneous refund based upon any item which was not the subject of such determination or affected thereby, except in connection with a subsequent application of this section.

Sec. 3807. (d) Application to affiliated groups. -As used in subsection (b) the term "any other such tax of the taxpayer" shall, if the taxpayer was a member of an affiliated group, also include any other such tax of any other member of the group.

Sec. 3807, I. R. C., supra, added to I. R. C. by
Sec. 513 (a), R. A. of 1943. Sec. 513 (b) of said
Act makes amendment applicable to taxable years
beginning after Dec. 31, 1939.

Sec. 3808. Deferment of tax attributable to service pay for commissioned service and of tax attributable to pre-service earned income.

Sec. 3808. (a) Definitions.-As used in this section

Sec. 3808. (a) (1) Tax attributable to service pay.-The term "tax attributable to service pay"

means

(A) in the case of a war year for which the taxpayer had no gross income other than compensation for active service as a member of the military or naval forces of the United States, the tax imposed under chapter 1 for such year; or

(B) in the case of a war year for which the taxpayer had gross income in addition to compensation for active servivce as a member of the military or naval forces of the United States, the excess of the tax imposed under chapter 1 for such year over the tax that would have been imposed if such compensation had been excluded from gross income;

except that in the case of a commissioned officer (or a commissioned warrant officer) of the regular component of the Army, Navy, Marine Corps, or Coast Guard, such term shall not apply to any war year unless, at the time prescribed for the payment of the tax under chapter 1 for such year, a period of time was being disregarded under section 3804.

Sec. 3808. (a) (2) War year.-The term "war year"

(A) when used with respect to the tax attributable to service pay means any taxable year beginning after December 31, 1939, and before January 1, 1947; and

(B) when used with respect to the tax attributable to pre-service earned income means any taxable year beginning after December 31, 1939, but before January 1, 1942, and before the taxpayer entered upon active service as a member of the military or naval forces of the United States, but does not include any year unless part of the tax imposed by chapter 1 for such year became due and payable after the taxpayer entered upon such active service.

Sec. 3808. (a) (3) Tax attributable to pre-service earned income.-The term "tax attributable to pre-service earned income" means the excess of the tax imposed by chapter 1 for any war year over the tax that would have been imposed for such year if there had been excluded from the net income for such year the amount of the earned net income (as such term was defined in section 25 (a) (4) as in force with respect to such year, except that in computing such earned net income, compensation for active service in such forces shall be disregarded).

Sec. 3808. (a) (4) First installment date.-The term "first installment date" means May 15, 1946, in the case of taxpayers released from active duty in the military or naval forces of the United States prior to December 1, 1945; and in other cases June

15, 1947, or the fifteenth day of the sixth month which begins after the date of the taxpayer's release from active duty in such forces, whichever is the earlier; except that, if the first installment date with respect to any war year would otherwise occur earlier than the fifteenth day of the third month following the close of such year, the first installment date with respect to such year shall be the fifteenth day of such third month.

Sec. 3808. (b) Extension of time for payment.— Upon application with respect to any war year, made prior to the first installment date, and under regulations prescribed by the Commissioner with the approval of the Secretary

Sec. 3808. (b) (1) the time for payment of an amount of the tax under chapter 1 for such year which is equal to the tax attributable to service pay for such year and which has not been paid before the filing of such application; and

Sec. 3808. (b) (2) the time for the payment of an amount of the tax under chapter 1 for such year which is equal to the tax attributable to pre-service earned income for such year and which has not been paid before the filing of such application,

shall, in lieu of the time otherwise applicable, be as follows: one-twelfth thereof on the first installment date and an additional twelfth thereof every three months thereafter until such tax is paid.

Sec. 3808. (c) Suspension of period of limitation.-The running of the period of limitation provided in section 276 (c) (relating to the collection of the tax after assessment) in respect of any tax the time for the payment of which is prescribed under subsection (b), shall be suspended for the period beginning with the date of the filing of the application under such subsection and ending six months after the date prescribed therein for the payment of the last installment of such tax.

Sec. 3808. (d) Estimated tax.-If the taxpayer is eligible for the benefits of subsection (b) with respect to any war year

Sec. 3808. (d) (1) for the purposes of the application of section 58 with respect to such year, compensation for active service as a member of the military or naval forces of the United States may be disregarded in determining the gross income reasonably expected for such year, and in determining the estimated tax for such year; and

Sec. 3808. (d) (2) for the purposes of section 294 (d) the tax for such year shall be determined as if such compensation were excluded from gross income.

This subsection shall not apply with respect to a taxpayer for any war year who at the time prescribed for making the declaration of estimated tax for such year is a commissioned officer (or a commissioned warrant offier) of the regular component of the Army, Navy, Marine Corps, or Coast Guard.

Sec. 3808, I. R. C., supra, added to I. R. C. by
Sec. 142 (a), R. A. of 1945, approved Nov. 8, 1945.

Sec. 142 (b) of said Act reads as follows:

"(b) REFUND OF INTEREST PAID.-Any interest paid prior to the date of the enactment of this Act with respect to tax attributable to service pay for any war year, or with respect to tax attributable to pre-service earned income for any war year, shall be credited or refunded if claim therefor is filed with the Commissioner prior to January 1, 1947."

Sec. 3809. (a) Penalties.-Any person who willfully makes and subscribes any return, statement, or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter, shall be guilty of a felony, and, upon conviction thereof, shall be fined not more than $2,000 or imprisoned not more than five years, or both.

Sec. 3809. (b) Signature presumed correct.— The fact that an individual's name is signed to a return, statement, or other document shall be prima facie evidence for all purposes that the return, statement, or other document was actually signed by him.

Sec. 3809. (c) Verification in lieu of oath.—The Commissioner, under regulations prescribed by him with the approval of the Secretary, may require that any return, statement, or other document required to be filed under any provision of the internal revenue laws shall contain or be verified by a written declaration that it is made under the penalties of perjury, and such declaration shall be in lieu of any oath otherwise required.

Sec. 3809, I. R. C., supra, added to I. R. C. by
Sec. 4, (P. L. 271) Act of Aug. 27, 1949.

Sec. 3900. Appointment and salary. There shall be in the Department of the Treasury a Commissioner of Internal Revenue, who shall be appointed by the President, by and with the advice and consent of the Senate, and shall be entitled to a salary of $10,000 a year.

Sec. 3901. Powers and duties.

Sec. 3901. (a) Assessment and collection.-The Commissioner, under the direction of the Secre

tary

Sec. 3901. (a) (1) General superintendence.— Shall have general superintendence of the assessment and collection of all taxes imposed by any law providing internal revenue; and

Sec. 3901. (a) (2) Regulations, forms, stamps, and dies.-Shall prepare and distribute all the instructions, regulations, directions, forms, blanks, stamps, and other matters pertaining to the assessment and collection of internal revenue; and shall provide hydrometers, and proper and sufficient adhesive stamps and stamps or dies for expressing and denoting the several stamp taxes, or, in the case of

percentage taxes, the amount thereof; and alter and renew or replace such stamps from time to time, as occasion may require.

Sec. 3901. (a) (3) Estimate of expense.—The Commissioner shall estimate in detail by collection districts the expense of assessing and the expense of the collection of internal revenue.

Sec. 3901. (b) Detail of personnel from field service.

Sec. 3901. (b) (1) In general.-The Commissioner may order any officer or employee of the internal revenue service engaged in field work to duty with the Bureau of Internal Revenue in the District of Columbia, for such periods as the Secretary may prescribe, and to any designated post of duty outside the District of Columbia, upon the completion of such duty.

Sec. 3901. (b) (2) Revenue agents.-Nothing in section 6 of the Act of June 22, 1906, c. 3514, 34 Stat. 449 (U. S. C., Title 5, § 39) shall be construed to prevent the Commissioner from detailing one revenue agent for duty in his office.

Sec. 3915. Employment. There may be employed in the Bureau of Internal Revenue five deputy commissioners.

Sec. 3916. Duties.

Sec. 3916. (a) In general.-The Commissioner is

authorized to assign to deputy commissioners such duties as he may prescribe.

Sec. 3916. (b) To act as commissioner.-The Secretary may designate any deputy commissioner to act as Commissioner during the Commissioner's absence.

Sec. 3930. (a) There shall be in the Department of the Treasury the office of General Counsel for the Department of the Treasury (hereinafter in this chapter referred to as the "General Counsel"). The General Counsel shall be appointed by the President, by and with the advice and consent of the Senate, and shall receive compensation at the rate of $10,000 per annum. The General Counsel shall be the chief law officer of the Department, and shall perform such duties in respect of the legal activities thereof as may be prescribed by the Secretary or required by law.

Sec. 3930. (b) The General Counsel shall have such powers, duties, and functions as were formerly vested in and exercised by the offices of General Counsel for the Bureau of Internal Revenue, Assistant General Counsel for the Bureau of Internal Revenue, Solicitor of the Treasury, and Assistant Solicitor of the Treasury.

Sec. 3931. Assistant general counsel.—Appointment, salaries, and duties.

Sec. 3931. (a) The President is authorized to appoint, by and with the advice and consent of the Senate, an Assistant General Counsel for the Bureau of Internal Revenue and to fix his compensa

tion at a rate not in excess of $10,000 per annum. The Secretary may appoint and fix the duties of such other Assistant General Counsel (not to exceed five) and such other officers and employees as he may deem necessary to assist the General Counsel in the performance of his duties.

Sec. 3931. (b) The Secretary may designate one of the Assistant General Counsel to act as the General Counsel during the absence of the General Counsel. The General Counsel, with the approval of the Secretary, is authorized to delegate to any Assistant General Counsel any authority, duty, or function which the General Counsel is authorized or required to exercise or perform.

Sec. 3931. (c) The Assistant General Counsel appointed by the Secretary may be appointed and compensated without regard to the provisions of the Classification Act of 1923, as amended, and the Civil Service laws and shall receive compensation at such rate (not in excess of $10,000 per annum) as may be fixed by the Secretary.

Sec. 3932. Functions of department of justice unaffected.

Nothing in this chapter shall be construed to affect the duties, powers, or functions imposed upon, or vested in the Department of Justice, or any officer thereof, by law existing on May 10, 1934.

Sec. 5000. Authorization.

There shall be a joint congressional committee known as the Joint Committee on Internal Revenue Taxation (hereinafter in this subtitle referred to as the "Joint Committee").

Sec. 5001. (a) Number and selection.-The Joint Committee shall be composed of ten members as follows:

Sec. 5001. (a) (1) From Committee on Finance. -Five members who are members of the Committee on Finance of the Senate, three from the majority and two from the minority party, to be chosen by such Committee; and

Sec. 5001. (a) (2) From Committee on Ways and Means.-Five members who are members of the Committee on Ways and Means of the House of Representatives, three from the majority and two from the minority party, to be chosen by such Committee.

Sec. 5001. (b) Tenure of office.

Sec. 5001. (b) (1) General limitation.-No person shall continue to serve as a member of the Joint Committee after he has ceased to be a member of the Committee by which he was chosen, except that

Sec. 5001. (b) (2) Exception.-The members chosen by the Committee on Ways and Means who have been re-elected to the House of Representatives may continue to serve as members of the Joint Committee notwithstanding the expiration of the Congress.

Sec. 5001. (c) Vacancies.-A vacancy in the Joint Committee

Sec. 5001. (c) (1) Effect.-Shall not affect the power of the remaining members to execute the functions of the Joint Committee; and

Sec. 5001. (c) (2) Manner of filling.-Shall be filled in the same manner as the original selection, except that

(A) ADJOURNMENT OR RECESS OF CONGRESS.-In case of a vacancy during an adjournment or recess of Congress for a period of more than two weeks, the members of the Joint Committee who are members of the Committee entitled to fill such vacancy may designate a member of such Committee to serve until his successor is chosen by such Committee; and

(B) EXPIRATION OF CONGRESS.-In the case of a vacanacy after the expiration of a Congress which would be filled by the Committee on Ways and Means, the members of such Committee who are continuing to serve as members of the Joint Committee may designate a person who, immediately prior to such expiration, was a member of such

Committee and who is re-elected to the House of Representatives, to, serve until his successor is chosen by such Committee.

Sec. 5001. (d) Allowances.-The members shall serve without compensation in addition to that received for their services as members of Congress; but they shall be reimbursed for travel, subsistence, and other necessary expenses incurred by them in the performance of the duties vested in the Joint Committee, other than expenses in connection with meetings of the Joint Committee held in the District of Columbia during such times as the Congress is in session.

Sec. 5002. Election of chairman and vicechairman.

The Joint Committee shall elect a chairman and vice-chairman from among its members.

Sec. 5003. Appointment and compensation of staff.

The Joint Committee shall have power to appoint and fix the compensation of a clerk and such experts and clerical, stenographic, and other assistants as it deems advisable.

Sec. 5004. Payment of expenses.

The expenses of the Joint Committee shall be paid one-half from the contingent fund of the Senate and one-half from the contingent fund of the House of Representatives, upon vouchers signed by the chairman or the vice-chairman.

Sec. 5010. Powers.

Sec. 5010. (a) To obtain data and inspect income returns.

For powers of the Joint Committee to obtain and inspect income returns, see section 55 (d).

Sec. 5010. (b) Relating to hearings and sessions.-The Joint Committee, or any subcommittee thereof, is authorized

Sec. 5010. (b) (1) To hold.-To hold hearings and to sit and act at such places and times;

Sec. 5010. (b) (2) To require attendance of witnesses and production of books. To require by subpoena (to be issued under the signature of the chairman or vice-chairman) or otherwise, the attendance of such witnesses and the production of such books, papers, and documents;

Sec. 5010. (b) (3) To administer oaths.-To administer such oaths; and

Sec. 5010. (b) (4) To take testimony.—To take such testimony; as it deems advisable.

Sec. 5010. (c) To procure printing and binding. -The Joint Committee, or any subcommittee thereof is authorized to have such printing and binding done as it deems advisable.

Sec. 5010. (d) To make expenditures.—

Sec. 5010. (d) (1) General authority.-The Joint Committee, or any subcommittee thereof, is authorized to make such expenditures as it deems advisable.

Sec. 5010. (d) (2) Limitation.-The cost of stenographic services in reporting such hearings as the Joint Committee may hold shall not be in excess of 25 cents per hundred words.

Sec. 5011. Duties.

It shall be the duty of the Joint Committee-
Sec. 5011. (a) Investigation.—

Sec. 5011. (a) (1) Operation and effects of law. To investigate the operation and effects of the Federal system of internal revenue taxes;

Sec. 5011. (a) (2) Administration.—To investigate the administration of such taxes by the Bureau of Internal Revenue or any executive department, establishment, or agency, charged with their administration; and

Sec. 5011. (a) (3) Other investigations.-To make such other investigations in respect of such system of taxes as the Joint Committee may deem

necessary.

Sec. 5011. (b) Simplification of law.—

Sec. 5011. (b) (1) Investigation of methods.— To investigate measures and methods for the simpli