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his right to sue for interest as incidental damages. Stewart v. Barnes, 153 U. S. 456.

A decision reported by the Commissioner of Internal Revenue in 1871, as to the refunding of certain taxes, to the Secretary of the Treasury for his advisement, under the Treasury Regulations then in force, was held not to be final. Stotesbury v. United States, 146 U. S. 196. See Dupasseur v. United States, 19 Ct. Cl. 1; Sybrandt v. United States, 19 Ct. Cl. 461. A corporation is not bound to produce its books to the assessor on an inquiry into the income of its stockholders. Re Chadwick, 1 Lowell, 439. Under the act of 1866, the lien of the income tax related back, upon demand, to the time when the tax was due, but only as to property belonging to the taxpayer when the demand was made. United States v. Pacific Railroad, 1 Fed. Rep. 97. As to the introduction in evidence of an assessment list, regular in form, making a prima facie case, see Western Express Co. v. United States, 141 Fed. Rep. 28.

The fact that an assessment had been paid did not bar a suit to recover an amount claimed to be due beyond the amount so assessed and paid. United States v. Little Miami R. Co., 1 Fed. Rep. 700.

It was held under the old law that when im

proper deductions had been made and knowingly allowed, the errors could not be corrected after the tax had been paid, and that when the fact of an understatement had been subsequently discovered, the amount so understated might be increased. 41 U. S. Rev. Journ. 98. This entire subject is ably treated in Foster & Abbot, chapter VIII, Remedies of Taxpayer.

By U. S. Rev. Sts. § 3229 it is provided that the Commissioner of Internal Revenue, with the consent of the Secretary of the Treasury, may compromise cases under the internal revenue laws instead of commencing suit; and, with the consent of the secretary and the recommendation of the Attorney General, may compromise any case after suit brought. But see Speer, 20.

WHEN ASSESSMENTS SHALL BE MADE AND PAID ADDITIONS IN CASE OF NON

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PAYMENT.

E. That all assessments shall be made by the Commissioner of Internal Revenue and all persons shall be notified of the amount for which they are respectively liable on or before the first day of June of each successive year, and said assess

ments shall be paid on or before the thirtieth day of June, except in cases of refusal or neglect to make such return and in cases of false or fraudulent returns, in which cases the Commissioner of Internal Revenue shall, upon the discovery thereof, at any time within three years after said return is due, make a return upon information obtained as above provided for in this section or by existing law, and the assessment made by the Commissioner of Internal Revenue thereon shall be paid by such person or persons immediately upon notification of the amount of such assessment; and to any sum or sums due and unpaid after the thirtieth day of June in any year, and for ten days after notice and demand thereof by the collector, there shall be added the sum of five per centum on the amount of tax unpaid, and interest at the rate of one per centum per month upon said tax from the time the same became due, except from the estates of insane, deceased, or insolvent persons.

The penalty was the same in the acts of 1867 and of 1870, the time of payment being changed. In the act of 1865 it was ten per cent without the clause as to interest. The words "notice and" were added by the act of 1865, which struck out the words "for thirty days," which followed "unpaid" in the third line in the act of 1864. The last part of this paragraph is nearly identical with § 30 of the act of 1894.

In 1871, in United States v. Dollar Savings Bank, 15 Int. Rev. Rec. 193, the court said that "the defendant was not reprehensibly in default, but that its refusal to pay the tax claimed was induced by the inconsistent action and the conflicting opinions of the Internal Revenue Department as to its liability, and its reasonable desire, therefore, to have this judicially determined. Under such circumstances interest ought not to be exacted."

The demand under the act of 1866 should state the amount of the tax and demand payment therefor. United States v. Pacific Railroad, 4 Dill. 71. See Magee v. Denton, 5 Blatch. 130. The method adopted in case of a state statute imposing a tax with interest at the rate of twelve per cent until paid is stated in Massachusetts v. Western Union Tel. Co., 145 U. S. 40.

DEDUCTION AND PAYMENT AT SOURCE OF NORMAL TAX.

All persons, firms, co-partnerships, companies, corporations, joint stock companies or associations, and insurance companies, in whatever capacity acting, including lessees or mortgagors of real or personal property, trustees acting in any trust capacity, executors, administrators, agents, receivers, conservators, employers, and all officers and employees of the United States having the control, receipt, custody, disposal, or payment of interest, rent, salaries, wages, premiums, annuities, compensation, remuneration, emoluments, or other fixed or determinable annual gains, profits, and income of another person, exceeding $3,000 for any taxable year, other than dividends on capital stock, or from the net earnings of corporations and jointstock companies or associations subject to like tax, who are required to make and render a return in behalf of another, as

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