(446.) Special tax-Banks. Internal-revenue ruling 440, TREASURY DECISIONS, to be applied to special-tax returns for the current year. No additional special tax on capital and surplus required by reason of increase of capital during the current year. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., December 11, 1901. SIR: In reply to the closing inquiry in your letter of the 7th instant, you are hereby advised that ruling 440 in TREASURY DECISIONS of December 5, 1901, to which you refer, is to be applied to special-tax returns made by banks for the current year and not to former years in cases of banks that have made return and paid special tax for those years. To the other and principal inquiry made in your letter, my reply is that where a bank has made return and paid special tax for the year beginning July 1, 1901, on its capital and surplus for the preceding fiscal year, it is not required to pay any further special tax for the current year by reason of an increase of its capital. Respectfully, J. W. YERKES, Commissioner. Mr. JAMES S. FRUIT, Collector Twenty-third District, Pittsburg, Pa. (447.) Compensation limit of gaugers, storekeepers, and storekeeper-and-gaugers appointed under civil service rule 6. [Int. Rev. Circular No. 614.] TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, To collectors of internal revenue : Washington, D. C., December 12, 1901. The attention of collectors is invited to the compensation limit in the case of gaugers, storekeepers, and storekeeper-and gaugers appointed under civil service rule 6. The compensation of officers so appointed and qualified must not exceed $3 per day or $500 for any fiscal year. Therefore, in all cases where an officer of this class has reached the compensation limit of $500, his assignment should be revoked and he should not be again assigned until the beginning of the next fiscal year. As collectors are responsible for moneys improperly disbursed, it is incumbent upon them to see that the limit of $3 per day and $500 per year is not exceeded. J. W. YERKES, Commissioner. (448.) Special tax-Gramophone exhibition. Where a gramophone exhibition is given in connection with temperance lectures by any person for his own pecuniary profit, he is required to pay special tax therefor. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., December 18, 1901. SIR: In reply to your letter of the 9th instant, you are hereby informed that in giving a small gramophone exhibition, as you state, in connection with your temperance lectures, charging an admission fee thereto, no matter how small it may be, for your own pecuniary profit, you are giving a public exhibition or show for money within the meaning of the seventh paragraph of section 2 of the act of March 2, 1901, and a separate special tax must be paid by you for each State in which you give this exhibition, reckoned from the first day of the month in which you begin to the 1st day of July following, at the rate of $10 for the year beginning July 1 in the calendar year. Respectfully, J. W. YERKES, Commissioner. Mr. E. K. THOMAS, Mountain Lake Park, Md. (449.) Legacy tax. Real estate mortgage indebtedness not a proper charge against the personal estate as regards the liability of the estate to legacy tax. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., December 16, 1901. SIR: Your letter of the 19th ultimo, giving a list of estates, some of which are liable to legacy taxes, while others are not liable to such taxes, and submitting four executed returns, Form 419, for decision as to whether the estates they report are liable to legacy taxes, was received. In reply, you are advised that but one of the four cases submittedthe estate of Harriet T. Richmond, deceased-appears to be liable to legacy tax. The appraised value of this estate is reported as $23,500; legal debts and expenses, $17,516.25, leaving a balance clear value of personal estate of less than $6,000. The reported debts, however, include two items aggregating $14,000 and interest accruing subsequent to death of testatrix. These two items represent mortgage indebtedness on certain real estate, and it is therefore held that they are not a proper charge against the personal estate as regards the liability of the estate to legacy tax. Form 419 in this case is returned herewith. Respectfully, Mr. W. FRANK KINNEY, J. W. YERKES, Commissioner. Collector of Internal Revenue, Hartford, Conn. (450.) Notification of indictment of internal-revenue officers. United States attorneys will notify the Commissioner of Internal Revenue when an indictment is found against any officer of internal revenue. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, To all United States attorneys: When an indictment is found against any officer of internal revenue, you are requested to notify this office by letter, as well as on Form 112, district attorney's report to Commissioner of commencement of proceedings. If the person holds the office of storekeeper or gauger, you will please also notify the collector of the proper district. J. W. YERKES, Commissioner. (451.) Bay rum. Bay rum brought from Porto Rico taxable as distilled spirits although labeled and intended for sale as a toilet preparation. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., December 18, 1901. SIR: This office is in receipt of a letter from A. S. Lascelles & Co., of your city, stating that they have received from Porto Rico a consignment of 6 cases of bay rum, containing 24 pint bottles each; that this rum is a medicinal (toilet) preparation; that its high price will not admit of further manipulation; and they ask whether the article so put up and labeled is subject to tax as distilled spirits. Under Treasury decision 404 of August 15 last, bay rum brought from Porto Rico is held to be liable to internal-revenue tax as distilled spirits; and under Treasury decision 430 such tax applies to all distilled spirits brought from Porto Rico in bottles. You will please advise Messrs. Lascelles & Co. to this effect, and also that the fact that the bay rum in question is labeled as a toilet article, and will be sold and used as such, does not exempt the spirits therein contained from the tax imposed. J. W. YERKES, Commissioner. Respectfully, Mr. L. J. SOUER, Collector Internal Revenue, New Orleans, La. (452.) Export bills of lading. Refund of tax paid on export bills of lading-Instructions as to making claims. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., December 27, 1901. GENTLEMEN: Replying more fully to yours of the 21st instant, you are informed that no special ruling has been made regarding the preparation and filing of claims for the refunding of amounts paid for stamps affixed to export bills of lading, other than the one of June 5, of which you have been furuished a copy, and which, in view of the fact that the United States Supreme Court has refused a rehearing in the case of Fairbanks v. United States, is now of no effect, except as to the last paragraph. Claims of this character should be made on Form 46, revised April, 1901, but in cases where the attorneys desire to prepare a form better adapted to this class of cases, claims prepared upon such forms will be received, provided that the form complies in size to the rules of the Department-that is, so as to fold 3 by 8 inches and have forms for the deputy collector's affidavit and the collector's certificate. Where possible, these claims should be accompanied by the bills of lading with the stamps affixed thereto, but in cases where the bills of lading can not be obtained the duplicate bills of lading should be presented to the collector for his examination and a statement made in the claim showing why the stamps can not be procured. Where neither the bills of lading nor the duplicates thereof can be submitted to the collector, the books of the claimant should be submitted to the collector in order that he may be able to verify the claim. It must be shown that the claimant paid for the stamps and whether the full face value was paid. Claims of this character should be presented to the collector of the district in which the claimant resides, and will be by him forwarded to this office. Under the act of May 12, 1900, claims of this character can not be considered unless presented within two years after the purchase of the stamps from the Government, but this office has recommended that the act of May 12, 1900, be amended so as to provide for the allowance of such claims if presented within two years after the amendment, or if affixed subsequent to that date within two years after the stamps were affixed. Respectfully, J. W. YERKES, Commissioner. Messrs. G. A. & W. B. KING, Washington, D. C. (453.) Notes of obligations-Circulation. The third clause of section 3408, Revised Statutes, taxing circulation of notes or obligations, is still in force; and sections 19 and 20, act of February 8, 1875, imposing a tax of 10 per cent on circulation of notes of other persons or associations than national banking associations, are also in force. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., December 28, 1901. GENTLEMEN: In reply to your letter of the 21st instant, which has been referred to this office, you are hereby advised that the third clause of section 3408 of the Revised Statutes, taxing the circulation of banks, is still in force and still applies to the circulation of notes of any person or corporation, foreign or domestic, doing business within the United States, except national banks. In addition to this, there is also the tax imposed by section 19 of the act of February 8, 1875 (18 Stat., 311), which reads: That every person, firm, association other than national bank associations, and every corporation, State bank, or State banking association, shall pay a tax of ten per centum on the amount of their own notes used for circulation and paid out by them. (See, also, section 20 of the same act.) Respectfully, J. W. YERKES, Commissioner. Messrs. BRANDIS, DUNBAR & NUTTER, Boston, Mass. (454.) Legacy tax. A legacy in Government bonds to a municipal corporation, the principal of which is to be invested and the income to be expended in the maintenance and improvement of the public park of a city, held taxable. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., December 30, 1901. To collectors of internal revenue and others concerned : The appended decision of the United States circuit court for the southern district of Ohio, western division, relative to legacy tax, is published for the information and guidance of all concerned. J. W. YERKES, Commissioner. |