(This Treasury decision is prescribed pursuant to sections 3452, 3460, and 3465 of the Internal Revenue Code (53 Stat. 420, 421, 422), as amended by section 209 of the Revenue Act of 1940, (Public, No. 656, 76th Cong. 3d. Sess.), sections 1850, 3411 and 3460 of such code (53 Stat. 205, 412, 421), as modified by section 210 of such revenue act, and sections 1855, 3450, and 3472 of such code (53 Stat. 206, 419, 423).) T. MOONEY, Approved July 18, 1940: JOHN L. SULLIVAN, Acting Commissioner of Internal Revenue. Acting Secretary of the Treasury. [Filed with the Division of the Federal Register July 22, 1940, 11:57 a. m.] (T. D. 4987) Tax on playing cards Increase of rate of tax under section 1807 of the Internal Revenue Code, as amended by the Revenue Act of 1940 TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C. To Collectors of Internal Revenue and Others Concerned: In order to conform Regulations 66 (part 305, title 26, Code of Federal Regulations), relating to the tax on playing cards under the Internal Revenue Code, to section 215 of the Revenue Act of 1940 (Public No. 656, Seventy-sixth Congress, Third Session), approved June 25, 1940, amending section 1807 of the Internal Revenue Code, such regulations, but only as prescribed and made applicable to the Internal Revenue Code by T. D. 4885, approved February 11, 1939 (part 465, subpart B of such title 26, 1939 Supp.), are amended as follows: Immediately prior to article 8 [section 305.8] there are substituted for the quotations of law shown, a heading and quotation of section 1807 of the Internal Revenue Code and a heading and quotation of section 215 of the Revenue Act of 1940, as follows: SECTION 1807 OF THE INTERNAL REVENUE CODE. SEC. 1807. PLAYING CARDS. Upon every pack of playing cards containing not more than fifty-four cards, manufactured or imported, and sold, or removed for consumption or sale, a tax of 10 cents per pack. This tax shall be in addition to any import duties imposed on such articles of foreign manufacture. SEC. 215. SECTION 215 OF THE REVENUE ACT OF 1940. PLAYING CARDS. Section 1807 of the Internal Revenue Code is amended by inserting "(a) GENERAL RULE.-" before the first paragraph and inserting at the end thereof the following new subsection: (b) DEFENSE TAX FOR FIVE YEARS.-In lieu of the rate of tax specified in subsection (a), the rate of tax for the period after June 30, 1940, and before July 1, 1945, shall be 11 cents. The first paragraph of article 8 is amended to read as follows: ART. 8. Tax on playing cards.—Prior to July 1, 1940 and after June 30, 1945, the rate of tax on playing cards is 10 cents per pack containing not more than 54 cards. For the period July 1, 1940 to June 30, 1945, inclusive, the rate of tax is 11 cents on each such pack. Each additional 54 cards or fraction thereof in a pack constitutes a new pack on which tax must be paid. For example, if a pack contains 120 cards it must be considered as constituting three packs, two packs of 54 cards and one pack of 12 cards, and each such pack is subject to tax at the rate in effect when liability is incurred. Immediately prior to article 19 [section 305.19] there are substituted for the quotations of law shown, a heading and quotation of section 1807 of the Internal Revenue Code and a heading and quotation of section 215 of the Revenue Act of 1940, as follows: SECTION 1807 OF THE INTERNAL REVENUE CODE SEC. 1807. PLAYING CARDS. Upon every pack of playing cards containing not more than fifty-four cards, manufactured or imported, and sold, or removed for consumption or sale, a tax of 10 cents per pack. This tax shall be in addition to any import duties imposed on such articles of foreign manufacture. SECTION 215 OF THE REVENUE ACT OF 1940 SEC. 215. PLAYING CARDS. Section 1807 of the Internal Revenue Code is amended by inserting "(a) GENERAL RULE.-" before the first paragraph and inserting at the end thereof the following new subsection: (b) DEFENSE TAX FOR FIVE YEARS.-In lieu of the rate of tax specified in subsection (a), the rate of tax for the period after June 30, 1940, and before July 1, 1945, shall be 11 cents. The first paragraph of article 19 is amended to read as follows: ART. 19. Imported playing cards.-(a) Liability to tax.-Prior to July 1, 1940 and after June 30, 1945, playing cards imported from foreign countries must be tax-paid at the rate of 10 cents per pack of not more than 54 cards. For the period July 1, 1940 to June 30, 1945, inclusive, the rate of tax is 11 cents on each such pack. Such tax is in addition to any import duty and must be paid by affixing the required stamps prior to release of the cards from customs custody. This Treasury decision is prescribed pursuant to section 1807 of the Internal Revenue Code, as amended by section 215 of the Revenue Act of 1940, and sections 1835 and 3791 of such code (53 Stat. 204, 467). T. MOONEY, Acting Commissioner of Internal Revenue. Approved July 18, 1940: JOHN L. SULLIVAN, Acting Secretary of the Treasury. [Filed with the Division of the Federal Register July 22, 1940, 11:58 a. m.] (T. D. 4988) Regulations 71, as amended, relating to stamp taxes, as made applicable to the Internal Revenue Code by T. D. 4885, amended TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C. To Collectors of Internal Revenue and Others Concerned: Sections 209 and 210 of the Revenue Act of 1940, Public No. 656, 76th Congress, 3d Session, approved June 25, 1940, provide, respectively: SEC. 209. CONTINUATION OF EXCISE TAXES. Sections 1801, 1802, * * * 3481 (b), and 3482 of the Internal Revenue Code are amended by striking out "1941" wherever appearing therein and inserting in lieu thereof "1945". SEC. 210. MISCELLANEOUS EXCISES. The Internal Revenue Code is amended by inserting at the end of chapter 9 the following new chapter: CHAPTER 9A-DEFENSE TAX FOR FIVE YEARS SEC. 1650. DEFENSE TAX FOR FIVE YEARS. (a) In lieu of the rates of tax specified in such of the sections of this title as are set forth in the following table, the rates applicable with respect to the period after June 30, 1940, and before July 1, 1945, shall be the rates set forth under the heading "Defense-Tax Rate": Pursuant to the above amendments, Regulations 71, approved July 16, 1932, as amended [part 111 of title 26, Code of Federal Regulations], but only as prescribed and made applicable to the Internal Revenue Code by T. D. 4885, approved February 31, 1939 [part 465, subpart 5, of title 26, Code of Federal Regulations, 1939 Sup.] are amended as follows: Article 2, as amended by T. D. 4920, approved August 10, 1939, [section 111.2 of such title 26, 1939 Sup.] is amended to read as follows.. Art. 2. Effective Period.-The stamp tax provisions of the Internal Revenue Code, as amended by the Revenue Act of 1939 and as further amended by the Revenue Act of 1940, are in full force and effect. The rates of tax imposed by sections 1801, 1802 (a), and 1802 (b) of the Internal Revenue Code, which would have been reduced on July 1, 1941, and the stamp taxes imposed by sections 3481 and 3482 of the Internal Revenue Code, which would have been repealed as of that date, will remain effective to and including June 30, 1945, subject, however, to the increase in rates provided for in section 210 of the Revenue Act of 1940, which apply to all the stamp taxes with respect to the period July 1, 1940 to June 30, 1945, inclusive. Article 26 [section 111.26] is amended as follows: (a) By inserting in paragraph (a) after the words "10 cents" the words "(11 cents on and after July 1, 1940 and prior to July 1, 1945).” (b) By inserting in paragraph (b) after the words "10 cents" the words "(11 cents on and after July 1, 1940 and prior to July 1, 1945)," and after the words "2 cents" the words "(3 cents on and after July 1, 1940 and prior to July 1, 1945)." Article 32 [section 111.32] is amended as follows: (a) By inserting in paragraphs (a) and (b) after the words "4 cents" wherever appearing therein the words "(5 cents on and after July 1, 1940 and prior to July 1, 1945).” (b) By inserting in paragraph (c) after the words "5 cents instead of 4 cents" the words "(6 cents instead of 5 cents on and after July 1, 1940 and prior to July 1, 1945).” Article 33 [section 111.33] is amended as follows: (a) By inserting in paragraph (b) after "$1" the words "($1.25 on and after July 1, 1940 and prior to July 1, 1945)." (b) By inserting in paragraph (c) after the words "80 cents" the words "($1 on and after July 1, 1940 and prior to July 1, 1945)." (c) By inserting in paragraph (d) after the words "5 cents instead of 4 cents" the words "(6 cents instead of 5 cents on and after July 1, 1940 and prior to July 1, 1945).” Article 69 [section 111.69] is amended by inserting after the words "3 cents" wherever appearing therein the words "(4 cents on and after July 1, 1940 and prior to July 1, 1945)," and by inserting after the words "33 cents" the words "(44 cents on and after July 1, 1940 and prior to July 1, 1945).” Article 121 [section 111.121] is amended by inserting after the words "4 cents" the words "(5 cents on and after July 1, 1940 and prior to July 1, 1945)." (This Treasury decision is issued under the authority contained in sections 1801, 1802, 1804, 1806, 3481, and 3482 of the Internal Revenue Code (53 Stat. 195, 196, 197, 199, 424, 425), as amended by sections 1 and 402 of the Revenue Act of 1939 (53 Stat. 862, 883) and as further amended by sections 209 and 210 of the Revenue Act of 1940 (Public No. 656, 76th Cong., 3d sess.), and section 3791 of the Internal Revenue Code (53 Stat. 467).) Approved July 18, 1940: JOHN L. SULLIVAN, T. MOONEY, Acting Commissioner of Internal Revenue. Acting Secretary of the Treasury. [Filed with the Division of the Federal Register, July 22, 1940, 11:58 a. m.] (T. D. 4989) Amending sections 19.55 (b)-2, 19.55 (b)-3, 19.55 (b)-4, and 19.55 (b)-5 o. Regulations 103, relating to the filing of copies of income returns by taxpayers and the inspection of such copies by an official, body, or commission, lawfully charged with the administration of a State tax law TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, To Collectors of Internal Revenue and Others Concerned: Paragraph 1. Regulations 103 [part 19, title 26, Code of Federal Regulations, 1940 Sup.] insofar as they prescribe rules relative to the filing of copies of income returns by taxpayers and the inspection of such copies by an official, body, or commission, lawfully charged with the administration of a State tax law, under section 55 (b) of the Internal Revenue Code, are hereby amended as follows: Par. 2. Section 19.55 (b)-2, section 19.55 (b)-3, and section 19.55 (b)-4 are amended by adding at the end of each of those sections a paragraph reading as follows: The provisions of this section shall not apply to taxable years beginning after December 31, 1939. Par. 3. The last sentence of the first paragraph of section 19.55 (b)-5 is amended to read as follows: When permission to inspect original returns is requested, the application of the governor of the State shall conform to the requirements specified in section 19.55 (b)-4 applying to copies of returns filed for taxable years beginning before January 1, 1940. |