tax. And the Commissioner of Internal Revenue, with the advice and consent of the Solicitor of Internal Revenue, is hereby directed to remit, abate, or pay back all such additional taxes in excess of $100 for any single year whenever in any case it appears to his satisfaction that the additional tax was assessed or imposed solely because of a neglect to make a return at the time or times specified in said act, and without any intention or design on the part of any officer of such corporation, etc., to hinder or delay the United States in the collection of the tax originally assessed."

"Claims for abatement or refunding under the provisions of the foregoing act shall be made on Forms 47 or 46, respectively, executed in the usual manner and filed with the collector of the district in which the claimant was assessed or paid its tax, to be by him entered on his record and certified to the Commissioner of Internal Revenue. Such claims should be accompanied by an affidavit of its president, vicepresident, or other principal officer, and its treasurer or assistant treasurer, stating specifically that the neglect to make the annual return of the claimant at the time required by law was without any intention or design on the part of any officer of such claimant to hinder or delay the United States in the collection of the tax

originally assessed, and setting forth in detail the cause or causes which produced the delay in filing the said annual return in the time and manner prescribed by law." 24 Treas. Decis. (1838).

In a communication dated December 5, 1911, 21 Treas. Decis. (1740), the Commissioner says that, when proceedings are instituted, the office suggests a civil action for the penalty instead of proceeding by indictment in a criminal action. "The amount of the penalty is to be determined by the court after a verdict for the plaintiff within the limits stated."

The Commissioner states in a communication dated May 1, 1913, 24 Treas. Decis. (1848):

"It is not the policy of this office to involve citizens in litigation for this offence without first giving them an opportunity to settle their controversies with the Government by compromise. However, where the delinquent corporation has been notified of its privilege to make an offer in compromise, but refuses or neglects, and has sufficient assets from which a judgment would be collectible, there is no option except to report it to the United States attorney, as the law requires. In reporting a case to the United States attorney, you will please give the location of the office of the corporation and the names and addresses of its officers, with your opinion

as to there being sufficient assets to make a judgment collectible. It is suggested that before recommending prosecution a deputy collector should be instructed to call upon the corporation to ascertain if it is now engaged in business, and the name of the party to be served with papers if suit is brought, and that it does not propose to make any overtures for settlement by way of compromise, or that the revenue agent of the division be requested to make the necessary investigation."

Instructions relative to offers in compromise are given in 20 Treas. Decis. (1698). Offers of less than $10 are too trivial. Same decision. Instructions as to compromise are also given in 20 Treas. Decis. (1692). The provisions as to the Commissioner of Internal Revenue, with the consent of the Secretary of the Treasury, compromising civil or criminal cases under the internal revenue laws, are found in U. S. Rev. Sts. § 3229. See also § 3469; Foster & Abbot, 228.

Where a civil action is brought to recover a penalty, the verdict must fix the amount, after which the only remedy (other than appeal) is an application for a compromise under U. S. Rev. Sts. §§ 3229, 3469. United States v. Acorn Roofing Co., 204 Fed. Rep. 157.

In a letter in 24 Treas. Decis. (1852), ad

dressed to a Collector of Internal Revenue, and dated May 29, 1913, the Commissioner says, "Relative to delinquent corporations in your district, which went out of existence during 1912, leaving no assets, after having transacted business during a portion of said year, you are advised that the former officers of such corporations can not be held individually liable for the penalty prescribed by law, nor are the individual funds or assets of stockholders available. If, however, a corporation has gone out of business, leaving assets which have been distributed among the stockholders, such assets are held to be available for collection of the tax (T. D. 1615), but not for the penalty. In this connection, your attention is called to T. D. 1710 and T. D. 1848, containing general instructions to collectors, in accordance with which you may, without asking for instructions from this office, eliminate from your delinquent list corporations which have done no business at all during the preceding calendar year, or which have gone out of business leaving no assets, or which, if still in business, have no assets from which judgment could be collected, or which, with their officers, can not be located after due investigation." See 20 Treas. Decis. (1673).

The penalty of from $1,000 to $10,000 for

failure to make return under the act of 1909 was held constitutional. United States v. Surprise, 25 Treas. Decis. (1864). The acceptance of a return by the Commissioner was held not a waiver of the penalty. Same case. Penalties for delay are a necessary incident to procuring revenue and should receive an impartial, if not a sympathetic, interpretation. Same case.

MEANING OF "STATE" OR "UNITED
STATES"

H. That the word "State" or "United States" when used in this section shall be construed to include any Territory, Alaska, the District of Columbia, Porto Rico, and the Philippine Islands, when such construction is necessary to carry out its provisions.