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when and where and with what return immunity is complete, and any balance the copy was filed. In case of amend- remaining after payment of depositors is ment a copy of the amendment must be available, within statutory limitations, filed with the return for the taxable year for collection of tax due at any time. in which the amendment is made. However, taxes of the bank will be col

(b) Failure to file. Failure of a bank lectible rom segregated assets only to to file any required statement will be the extent that the bank has a legal or treated as indicating that the bank is not equitable interest therein. Assets as to entitled to immunity under the sec- which there has been a complete conveytion.**ji

ance for benefit of depositors, and the

bank has bona fide been divested of all $ 464.11 Termination of immunity. Immunity under the section is terminated legal and equitable interest, are not availwhenever, within the statutory period of able for collection of the bank's tax limitations as extended by the section, the liability. tax can be collected without diminishing the assets necessary for payment of depositors'

As to unsegregated assets of a bank claims, including claims of new depositors within paragraph (b), immunity termisecured during the period of Immunity from nates only as to taxes thereafter becomtax collection. For the immunity to end, ing due. When taxes are once immune the assets must be sufficient to cover any re- from collection, the immunity as to unmaining balance still due under the agreement and any outstanding additional de- segregated assets is absolute. But see posits made by the same or other depositors the second paragraph of $ 464.6 (a). subsequent to the agreement. In other words, the bar of the section, when once in

(b) General creditors. While the imforce, is terminated only as, and to the ex- munity from tax collection is for protectent that, collection may be made without tion of depositors, and not for benefit diminishing assets available for satisfaction of all outstanding depositors claims, regard- of general creditors, in some cases the less of when their deposits were made.

immunity will not end until the assets While the immunity from tax collection are sufficient to cover indebtedness of is for protection of depositors only, in some creditors generally. This situation will cases the immunity will not end until the exist where under applicable law the assets are sufficient to cover indebtedness of creditors generally. This situation will exist claims of general creditors are on a parwhere under applicable law the claims of ity with those of depositors, so that to general creditors are on a parity with those pay depositors in full it is necessary to of depositors, so that to pay depositors in full it is necessary to pay all creditors in full. pay all creditors in full. In determining the sufficiency of the assets

(c) Shareholder liability. In determinto satisfy the depositors' claims, share- ing the sufficiency of the assets to satisfy holders' liability to the extent collectible the depositors' claims, shareholders' liashall be treated as available assets. See bility to the extent collectible shall be § 464.9. Deposit Insurance payable to depositors shall not be treated as an asset

of treated as available assets. See § 464.9. the bank and shall be disregarded in de- (d) Deposit insurance. Deposit insurtermining the sufficiency of the assets to meet the claims of depositors.* †

ance payable to depositors shall not be

treated as an asset of the bank and shall (Preceding section, in small type, super: be disregarded in determining the sufseded by following section during period covered by this Supplement]

ficiency of the assets to meet the claims $ 464.11 Termination of immunity, of depositors. (a) General. In the case of a bank (e) Notice by bank. A bank within within subsection (a) immunity will end subsection (b), upon termination of imwhenever, and to the extent that, taxes munity with respect to (1) earnings, (2) may be assessed and collected, within segregated or transferred assets, or (3) the applicable limitation periods as ex- unsegregated assets, shall immediately tended by the section, without diminish-notify the collector for the district in ing the assets available and necessary which the taxpayer's returns were filed for payment of depositors. Immunity of of such termination of immunity. See a bank within paragraph (b) is termi- $ 464.10 (b). nated, as to segregated assets, whenever (f) Payment by bank. As immunity claims of depositors against such assets terminates with respect to any assets, it have been paid in full. See $ 464.5. As will be the duty of the bank, without to segregated assets, the termination of notice from the collector, to make pay

**For statutory and source citations, see note to $ 464.1 on page 2181.

sets. **


ment of taxes collectible from such as-, lected with the tax. When unsegregated

assets or earnings therefrom previously $ 464.12 Collection of tax after termina- immune become available for tax collection of immunity—(a) General. If assets tion, they will be available only for colin excess of those necessary for payment of outstanding deposits become available, such lection of taxes (including interest and excess assets shall be applied toward atis- other additions) becoming due after faction of accumulated outstanding taxes,

immunity ceases. See example in collectible under the section, and not barred by the

statute of limitations. But § 464.7 (c). $ 464.5. Where sufficient assets are avail

(b) Tax due before the effective date able, statutory interest shall be collected with the tax. Generally, unless the interests of the amendments. In the case of a of the United States will be jeopardized bank within subsection (a), the section thereby, it will be sufficient if the amount does not permit assessment or reassessavailable for payment of collectible taxes without diminishing assets necessary for ment or collection of tax abated or repayment of depositors, is determined and funded, if the abatement or refund was paid by the taxpayer each time a Federal income tax return is filed. However, assess- in accordance with the section prior to ments and collections may be made at such the amendments by the Revenue Acts of other times as the collector or Commissioner 1938 and 1939. shall find appropriate and necessary to protect the interests of the United States.

In the case of a bank within subsec(b) Tax due before the effective date of tion (b) the section does not permit asthe amendment. The section does not per- sessment or reassessment of collection, mit assessment or reassessment or collection from segregated or unsegregated assets, of tax properly abated or refunded pur- of tax refunded on or before May 28, suant to the section on or before May 28, 1938. Tax due on or before that date, and 1938, if the refund was in accordance not so abated or refunded, and still out with the section prior to the amendstanding on the said date, is within the pro- ments by the Revenue Acts of 1938 and visions of the amended section and collectibility is determinable in accordance with the

1939. amended section the same as in the case With the exceptions indicated by the of tax due after such date. tax due prior to the effective date of the preceding two paragraphs, tax due on amendment and then collectible under the or before May 28, 1938, and still outsection may not be assessed or collected standing on the said date, is within the thereafter if such assessment or collection provisions of the amended section and would be contrary to the section as amended. collectibility is determinable in accordSee $ 464.8. If the statutory period for assessment or

ance with the amended section the same collection had expired before the effective as in the case of tax due after such date. date of amendment, the section does not Accordingly, a tax due prior to the efrevive it. Accordingly, in such situation the fective date of the amendments and tax is not collectible under the amended section, regardless of the bank's financial then collectible under the section may condition.* †

not be assessed or collected thereafter (Preceding section, in small type, super- if such assessment or collection would be seded by following section during period cov- contrary to the section as amended. ered by this Supplement]

See § 464.8. $ 464.12 Collection of tax after ter- If the statutory period for assessment mination of immunity-(a) General. If, or collection had expired before the efin the case of a bank within paragraph | fective date of the amendments, the sec(b), segregated assets (including earnings tion does not revive it. Accordingly, in therefrom), in excess of those necessary such situation the tax is not collectible for payment of outstanding deposits be- under the amended section, regardless come available, such excess of segregated of other circumstances. **†† assets shall be applied toward satisfac

8 464.13 tion of accumulated outstanding taxes regulations do not relate to Social Security

Social Security taxes. These previously immune under the section, and taxes, since the immunity granted by the not barred by the statute of limitations. amended section does not apply to taxes imBut see 464.5. Where sufficient segre- posed by the Social Security Act.*+ gated assets or unsegregated assets are seded by following section during period cov

(Preceding section, in small type, superavailable, statutory interest shall be col- | ered by this Supplement)

**For statutory and source citations, see note to § 464.1 on page 2181.

§ 464.13 Social Security taxes. The lating to internal revenue to make regulations in this part do not relate to seizures. (Sec. 3, 53 Stat. 1292; 49 Social Security taxes, since the immu- U.S.C., Sup., 783) [T.D. 31, Bureau of nity granted by the amended section does Narcotics, Aug. 31, 1939; 4 F.R. 3840] not apply to taxes imposed by the Social Security Act.**tt

$ 466.2 Custody. The following offi

cers are hereby authorized and desig§ 464.14 Effective date of regulations. nated to hold in custody, awaiting dispoThe regulations in this part are effective sition pursuant to the provisions of the as of May 28, 1938, the effective date of said Act of Aug. 9, 1939, and any regulathe amendments made by section 818 of tions issued thereunder, vessels, vehicles, the Revenue Act of 1938, and section 406 and aircraft seized pursuant to the said of the Revenue Act of 1939. Treasury Act: Decision 4882, I.R.B. 1939–4, 11 is

(a) the narcotic district supervisor for hereby revoked as of the date of its the district in which the seizure is made, approval.***t

when the seizure is made in connection

with a violation involving a contraband PART 465–REGULATIONS PRE- article covered by section 1 (b) (1) of


(b) the collector of internal revenue NOTE: Treasury Decisions 4884, 4885, 4886. for the district in which the seizure is 4887, 4889, and 4896 tentatively designated made, when the seizure is made in conunder Part 465 have been redesignated as nection with a violation involving a confollows: T.D. 4884, Chapter I (note); T.D. traband article covered by section 1 (b) 4885. Chapter (note); T.D. 4886, Part 310 (note); TD. 4887, Part 112 (note); 'T.D. 4889, (2) of the said Act, Chapter I (note); T.D. 4896, Chapter I (note). Provided, That in the case of any seizure

involving contraband articles covered by PART 466—SEIZURE, FORFEITURE, two or more of the subsections (b) (1),

AND DISPOSITION OF VESSELS, (b) (2) and (b) (3) of section 1 of the VEHICLES AND AIRCRAFT UNDER

said Act, custody shall be in the appro

priate officer (as above indicated in this THE ACT OF AUGUST 9, 1939

section or in the order relating to seiSec.

zures involving subsection (b) (3) of the 466.1 Officers who will make seizures.

branch of the Treasury service to which 466.2 Custody.

the seizing officer belongs. (Sec. 3, 53 466.3 Other duties.

Stat. 1292; 49 U.S.C., Sup., 783) [T.D. $ 466.1 Officers who will make sei- 31, Bureau of Narcotics, Aug. 31, 1939; zures. For the purpose of carrying out 4 F.R. 3841] the provisions of the Act of Congress

$ 466.3 Other duties. The respective approved August 9, 1939 (53 Stat. 1291; 49 U.S.C., Sup., 781–788), the following ignated to hold in custody seized vessels,

officers hereinbefore authorized and despersons are hereby authorized and des- vehicles, and aircraft under this Act are ignated to seize such vessels, vehicles, and aircraft as may be subject to seizure form such other duties with respect to

hereby authorized and designated to perby virtue of the provisions of the said seizures and forfeitures of vessels, veAct:

hicles, and aircraft under this Act, as (a) all officers engaged in the enforce- are imposed upon the collectors of cusment of the Federal narcotic drug laws toms and appraisers with respect to seiand the Marihuana Tax Act of 1937; zures and forfeitures of vessels and ve

hicles under the customs laws. (Sec. 4, (b) the Commissioner of Internal 53 Stat. 1292; 49 U.S.C., Sup., 784) Revenue, and all persons authorized by [T.D. 31, Bureau of Narcotics, Aug. 31, or pursuant to any provisions of law re- ) 1939; 4 F.R. 3841]





PART 601–RULES OF PRACTICE AND Rules of Practice, United States Processing PROCEDURE

Tax Board of Review, approved by Secretary of the Treasury, June 26, 1939, effective

July 1, 1939; 4 F.R. 2514. Sec. 601.1 Business hours.

$ 601.2 Admission to practice. Only 601.2 Admission to practice.

the following classes of individuals whom 601.3 Personal representation in lieu of the Board finds, upon consideration of counsel.

their applications, to be citizens of the 601.4 Form and style of papers. 601.5 Initiation of a proceeding; petition.

United States, of good moral character, 601.6 Fee for filing petition.

and to possess the requisite qualifications, 601.7 Designation of parties.

may be admitted to practice before the 601.8 Docket. 601.9 Service of papers.

Board: 601.10 Answer.

(a) Attorneys at law who are admitted 601.11 Joinder of issue.

to practice before the highest court of 601.12 Motions; general. 601.13 Amended and supplemental plead- any State, Territory, or the District of ings.

Columbia. 601.14 Pleadings; general.

(b) Certified public accountants duly 601.15 Extensions of time. 601.16 Dismissal.

qualified under the law of any State, Ter601.17 Substitution or withdrawal of coun- ritory, or the District of Columbia.

sel; notice of appearance. 601.18 Substitution of parties.

Corporations and firms will not be ad601.19 Notice of hearing.

mitted or recognized. 601.20 Burden of proof.

Applicants who are employed on a 601.21 Evidence,

full-time basis by a corporation, or by 601.22 Documentary evidence. 601.23 Stipulations.

an individual or partnership, engaged in 601.24 Submission without personal appear- a business or profession other than the

practice of law or certified public ac601.25 Oral arguments and briefs. 601.26 Transcripts of proceedings.

countancy and who do not maintain 601.27 Motions for rehearing.

offices apart from such employment with 601.28 Subpenas

their services available to the general 601.29 Depositions. 601.30 General provisions as to depositions.

public will not be eligible for admis601.31 Settlement.

sion to practice before the Board. 601.32 Fees.

Each application for admission to 601.33 Fees and mileage. 601.34 Computation of time; Sundays and practice shall be filed with the Board holidays.

on the form provided therefor. Forms 601.35 Effective date.

will be furnished upon request to the $ 601.1 Business hours. The office of Board. The application shall be accomthe Board at Washington, D. C., will be panied by a certificate of the clerk of open each business day, excepting Satur- the court in which the applicant is addays, from 9 o'clock a. m. to 4:30 o'clock has been so admitted and is in good

mitted to practice to the effect that he p. m., and on Saturdays from 9 o'clock standing, or a certificate by the proper a. m. to 1:00 o'clock p. m.*ť

State, Territorial, or District authority *$$ 601.1 to 601.35, inclusive, issued under to the effect that the applicant is a certhe authority contained in sec. 906 (d), 49 tified public accountant in good standStat. 1749; 7 U.S.C., Sup., 648 (d). +In $$ 601.1 to 601.35, inclusive, the num

ing, duly qualified, and entitled to pracbers to the right of the decimal point corre- tice in such State, Territory, or the Disspond with the respective rule numbers in Itrict of Columbia. Each applicant shall




take the oath on the form provided by $ 601.5 Initiation of a proceeding; pethe Board.

tition. A proceeding shall be initiated A register will be maintained by the by the filing of a petition with the Board Board, in which will be entered the at Washington, D. C. The petition shall names of all who have been admitted to be complete in itself so as fully to inform practice.

the Board of the issues to be presented.

It shall contain: The Board may, in its discretion, but only after affording an opportunity to be (a) A caption in the following form: heard, deny admission to, suspend, or UNITED STATES PROCESSING TAX BOARD OF disbar any one of the foregoing who, it

REVIEW finds, does not possess the requisite qualifications, or is lacking in character,

PETITIONER, integrity, or proper professional conduct.

Docket No. The Board may require any practi


REVENUE, RESPONDENT tioner before it to furnish a statement under oath of the terms and circum- (The respondent shall be the Commisstances of his employment in any pro- sioner of Internal Revenue, and the name ceeding. *t

of the incumbent of that office shall not

appear in the caption of the petition.) $ 601.3 Personal representation in lieu of counsel. Any individual petitioner or member of a petitioner partnership may appear for himself or such partnership diction in the Board.

(b) Proper allegations showing jurisupon adequate identification to the Board. A petitioner corporation may be

(c) A statement of the amount of the represented by a bona fide and duly au- claim for refund disallowed by the Comthorized officer of the corporation upon missioner, a description of the processing permission granted, in its discretion, by tax or taxes involved, and, as nearly as the Board or the presiding officer.**

may be computed, the amount thereof

in controversy. $ 601.4 Form and style of papers. All papers filed with the Board shall be either individually numbered, of each and every

(d) Clear and concise assignments, printed or typewritten on plain white paper. If typewritten they shall be on have been committed by the Commis

error which the petitioner alleges to one side of the paper, which shall be 842 sioner in the disallowance, in whole or inches wide and 11 inches long, and fastened only on the left side; originals shall in part, of the claim for refund. be on paper weighing not less than 16

(e) Clear and concise statements, inpounds to the ream; copies shall be legi- dividually numbered, of the facts upon ble, but may be on any weight paper; which the petitioner relies as sustaining citations shall be underscored. If the assignments of error. printed, they shall be in 10- or 12-point (f) A designation of the place where type, on good unglazed paper, 578 inches the petitioner desires a hearing, which wide by 9 inches long with inside margin place may be either in (1) Washington, not less than 1 inch wide, and with D. C., (2) the collection district in which double-leaded text and single-leaded is located the petitioner's principal place quotations; citations shall be in italics. of business, or (3) any place which may

Except when otherwise provided in have been designated by the Commisthis part, a signed original and four sioner and the petitioner by written clear, conformed copies of all papers stipulation. (A copy of such stipulation shall be filed. Whenever any paper is must be attached.) filed in more than one proceeding, as a (g) A prayer, setting forth the relief motion to consolidate proceedings or in sought by the petitioner. proceedings already consolidated, one

(h) The signature of the petitioner additional copy shall be filed for each

or that of his counsel. The signature of additional proceeding.

counsel shall be in individual and not in The proper caption shall be placed on firm name. The petition of a fiduciary all papers filled.* †

shall be signed by counsel or by one or

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