expense account of a deputy collector. When the employment of a driver is necessary, the expense will be allowed in the bill for livery. In every such case the necessity for a driver must be shown in the account of the deputy. Receipts taken by deputy collectors are often so incomplete as to be worthless as vouchers to an account. A receipt in addition to being dated must show when the expenses covered by it were incurred, and the nature and particular items of service; if for meals, indicate the same by their initial letters; if for livery, omuibus, or hack, state the distance traveled and the date. If a deputy visits more than one town a day, his diary report should make clear at which of the towns particular meals were taken and other expenses incurred; for example: December 16.-Smithville, B. 35 cents; to Cartersville, R. R. 22 miles, 60 cents; hack to brewery, 3 miles, 50 cents; examined cigar factory No. 10; street car fare, 5 cents; visited R. L. Ds. at Nos. 22, 33, and 143 Clark street; D., 50 cents. To Johnstown, R. R. 30 miles, 70 cents; street-car fare, 5 cents; visited First National Bank and found 17 checks unstamped; inspected the distillery of A. B. & Co. December 17.-S., L., and B., $1.25, voucher No. 1. side, 12 miles, to collect special tax as R. D. O.; D., to Johnstown; livery, $2.25, voucher No. 2. Went to Country 50 cents; returned As the bill for which voucher No. 1 was received (presumably after breakfast on the 17th) was in part for board on the 16th, the voucher should show that fact as: Received of $1.25 for S. and L. on the 16th, B. on the 17th. Collectors should instruct their division deputies carefully in regard to the making up of their expense accounts on Form 631. J. W. YERKES, Commissioner. (270.) Stamp tax on proxies or powers of attorney-Schedule A. Proxies or powers of attorney used to vote at meetings of building and loan associations, taxable.-Former rulings inconsistent revoked. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., January 26, 1901. SIR: Mr. Geo. W. Greer, of 463 West Forty-seventh street, New York, has written to this office asking to be advised if it is necessary to place a 10 cent revenue stamp on a proxy to vote at meetings of building and loan associations. Mr. Greer has been referred to you, and you will please inform him that a proxy, used to vote at meetings of building and loan associations for the election of officers only, requires a 10-cent stamp, but if used for any other purpose such instrument requires to be stamped at the rate of 25 cents as a power of attorney. Any former ruling inconsistent with this is hereby revoked. › Respectfully, J. W. YERKES, Commissioner. Mr. FERDINAND EIDMAN, Collector Third District, New York, N. Y. (271.) Stamp tax-Receipts used in withdrawing money. The use of unstamped receipts in withdrawing money from banks strictly confined to the depositor, and must be presented by him in person. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., January 31, 1901. SIR: I have to acknowledge the receipt of your letter of the 26th instant, and in reply you are advised that where a husband deposits money in a bank in his own name, and leaves instructions to allow his wife to withdraw any amount she may desire, she can not withdraw money from the account on a receipt without putting a 2-cent revenue stamp thereon. Where money is placed in the hands of an attorney to be loaned, and the attorney, for convenience in keeping the account, deposits it in a bank in the name of the principal, but with the understanding that he is to use it as his own, the attorney can not use a receipt for the purpose of withdrawing money so deposited in the name of his principal without putting a 2-cent stamp thereon. This office has always ruled that the privilege of withdrawing a bank deposit by receipt is strictly confined to the person in whose name the money is deposited, and such receipts must be presented by him to the bank personally. Respectfully, Mr. C. E. FERRIS, Winchester, Ind. (272.) J. W. YERKES, Commissioner. Reporting delinquent special-tax payers for assessment of taxes and revising The special attention of collectors is called to instructions on page 104, Regulations No. 1, prescribed October 29, 1900, which require that "All persons liable to pay a special tax who fail to pay the same prior to or during the calendar month in which the liability thereto is incurred must›› be reported on Form 23, with date of receipt of Form 11, or other application to pay tax, noted in column 7, Form 23." In some instances it appears, upon examination of the stubs of specialtax stamps issued, that the tax has been paid two or more months after the month in which the liability was incurred, and that the taxpayer has not been reported on Form 23, although the collector received Form 11, or other application to pay tax during the calendar month in which liability thereto was incurred. The failure on the part of collectors or their deputies, as the case may be, to report such taxes for assessment often endangers and causes delay in the collection thereof, and causes loss to the Government of the 5 per cent penalty and interest at the rate of 1 per cent per month, which only accrues for nonpayment within the time required by law of an assessed tax. It is often ascertained by correspondence that the person who files Form 11 and pays a special tax two or more months after such tax becomes due, and is apparently liable to the 50 per cent penalty, is not so liable, inasmuch as the liability to the tax so paid has been incurred on account of the increase of the business beyond the limit allowed by the stamp previously purchased. Each collector is urged to give the records of this class of special-tax payers such inspection, from time to time, as will enable him to discover when any one of them has so increased his business and to report each of such persons on the list for the month in which the increase occurs, stating on the list the full period of liability from commencement of business and giving the number of the special-tax stamp, if any has been issued, and writing in column 7 of the assessment list the words "Increased tax." This should be done in order that a prompt settlement of the increased liability may be secured by assessment, or, if a stamp at a higher rate has been issued, that special correspondence as to the 50 per cent penalty apparently due may be obviated. Application for the redemption of any stamp previously issued for the same business will be favorably considered after the stamp at the increased rate has been issued. It is also often observed, from examination of statements on Form 166, that collectors report persons for prosecution for having done business requiring payment of a special tax without having paid the same, but fail to report them on Form 23 until specially instructed to do so by this office (even though the special taxes are assessable). In this connection, I have to say that if there is evidence to justify prosecution there is sufficient evidence to make an assessment. It might not be advisable to wait until a case is decided criminally in court before assessment is made, as it may then be too late to make an assessment, or the delinquent may have become irresponsible. A strict compliance with the regulations above mentioned will be required in the future. J. W. YERKES, Commissioner. Approved: L. J. GAGE, Secretary of the Treasury. (273.) Sale of seized and distrained property. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, To collectors of internal revenue : Washington, D. C., February 5, 1901. Collectors are cautioned against incurring unnecessary expenses for advertising in connection with seizures for violation of law or under distraint made under any section of the statutes. The notice of seizure or sale should not be published for more weeks than is required by the law under which the proceedings are conducted, and should be published but once in each week. Charges for more than one publication each week will be disallowed. Notices should be so carefully worded as to contain all the information required by the statutes and nothing more. It is frequently the case that one-half of the notices will consist of matter that is immaterial and should not form a part of the notice. No notice should be published in display type, but should be set in six-point (nonpareil) or other small type used for legal notices by the paper printing it. The matter should be set solid (without space between the lines), and in no case should an entire line be consumed for the name of the collector, another for his title, and another for the district, as is sometimes the case. Neither is it necessary to attach the signature of the deputy collector who may have charge of the matter, in addition to the signature of the collector. In distraint cases, when deputy collectors charge certain fees for mileage, the provision of the second paragraph, page 97, series 7, No. 2, should be carefully observed. The amount received by the deputy collector on account of the seizure must be deducted from the total of his expenses as rendered in Form 631, even though the amount received in connection with the seizure is greater than the actual expenses incurred and charged in his Form 632. The salary and expenses of a deputy collector are paid by the Government, and he is entitled to receive nothing additional thereto. Any amount received by him in excess of his salary and actual expenses accrues to the Government. Collectors should render accounts on Form 210 for all sales of personal property seized, whether under distraint or for violation of law. If sale is made under any other than section 3460, the number of the section should be substituted for 3460 where it appears in Form 210. All vouchers should be taken in the name of the disbursing officer (the collector) claiming credit for the disbursements, and not in the name of a deputy collector, although, if desirable, the receipt may state that the amount was received of the collector per deputy collector, giving his name. Collectors are enjoined not to permit unnecessary delays in making sales, and to guard against postponements of same beyond the time provided in the statutes. ROBT. WILLIAMS, Jr., Acting Commissioner. (274.) Legacy tax. Where a legatee became entitled to a legacy through the exercise of power of appointment subsequent to June 13, 1898, legacy tax is required to be paid. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., February 8, 1901. SIR: This office is in receipt of a letter from Remsen & Parsons, 69 Wall street, New York City, under date of the 4th instant (who have to day been referred to you), relative to legacy tax, in which they state: A died before the passage of the act, possessed of property and leaving a will by which he gave the property to B for life, and after B's death to such persons as B by his (B's) will should appoint. B died after the passage of the act, leaving a will in which he exercised the power of appointment given by the will of A-and appointed C to take the property which now goes to C; And ask Does the United States law impose a tax on what C receives through this appointment, or are we to regard the property on passing by virtue of the will of A which took effect before the passage of the United States revenue act? In reply, you will please advise them that, in the opinion of this office, the executor under the will of B is required to pay tax on the legacies passing by virtue of her power of appointment to the legatees mentioned therein, in view of the fact that their right to the possession and enjoyment of these legacies arose from the exercise by her of this power, and they became entitled thereto at the time when the act of June 13, 1898, was in effect imposing tax on legacies arising from personal property passing after the passage of this act, provided that the whole amount of the beneficial interest of any one legatee under the will of testator B exceeds in the aggregate the sum of $10,000. Respectfully, ROBT. WILLIAMS, Jr., Acting Commissioner. Mr. CHARLES H. TREAT, Collector Second District, New York, N. Y. |