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when and where and with what return | immunity is complete, and any balance the copy was filed. In case of amendment a copy of the amendment must be filed with the return for the taxable year in which the amendment is made.

(b) Failure to file. Failure of a bank to file any required statement will be treated as indicating that the bank is not entitled to immunity under the section.**ii

remaining after payment of depositors is available, within statutory limitations, for collection of tax due at any time. However, taxes of the bank will be collectible from segregated assets only to the extent that the bank has a legal or equitable interest therein. Assets as to which there has been a complete conveyance for benefit of depositors, and the bank has bona fide been divested of all legal and equitable interest, are not available for collection of the bank's tax liability.

As to unsegregated assets of a bank within paragraph (b), immunity terminates only as to taxes thereafter becoming due. When taxes are once immune from collection, the immunity as to unsegregated assets is absolute. But see the second paragraph of § 464.6 (a).

§ 464.11 Termination of immunity. Immunity under the section is terminated whenever, within the statutory period of limitations as extended by the section, the tax can be collected without diminishing the assets necessary for payment of depositors' claims, including claims of new depositors secured during the period of immunity from tax collection. For the immunity to end, the assets must be sufficient to cover any remaining balance still due under the agreement and any outstanding additional deposits made by the same or other depositors 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 general creditors, in some cases the immunity will not end until the assets are sufficient to cover indebtedness of creditors generally. This situation will exist where under applicable law the claims of general creditors are on a parity with those of depositors, so that to pay depositors in full it is necessary to pay all creditors in full.

of all outstanding depositors' claims, regardless of when their deposits were made. While the immunity from tax collection is for protection of depositors only, in some cases the immunity will not end until the assets are sufficient to cover indebtedness of creditors generally. This situation will exist where under applicable law the claims of general creditors are on a parity with those of depositors, so that to pay depositors in full it is necessary to pay all creditors in full. (c) Shareholder liability. In determinIn determining the sufficiency of the assets to 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 Ibility 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 determining the sufficiency of the assets to meet the claims of depositors.*†

[Preceding section, in small type, superseded by following section during period covered by this Supplement]

(d) Deposit insurance. Deposit insurance payable to depositors shall not be treated as an asset of the bank and shall

be disregarded in determining the sufficiency of the assets to meet the claims of depositors.

§ 464.11 Termination of immunity— (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 for payment of depositors. Immunity of 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. will be the duty of the bank, without to segregated assets, the termination of | notice from the collector, to make pay

As

which the taxpayer's returns were filed of such termination of immunity. See

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

ment of taxes collectible from such as-lected with the tax. When unsegregated sets.**tt

§ 464.12 Collection of tax after termination of immunity-(a) General. If assets in excess of those necessary for payment of outstanding deposits become available, such excess assets shall be applied toward satisfaction of accumulated outstanding taxes, collectible under the section, and not barred

by the statute of limitations. But see

§ 464.5. Where sufficient assets are available, statutory interest shall be collected with the tax. Generally, unless the interests of the United States will be jeopardized thereby, it will be sufficient if the amount available for payment of collectible taxes without diminishing assets necessary for payment of depositors, is determined and paid by the taxpayer each time a Federal

income tax return is filed. However, assessments and collections may be made at such other times as the collector or Commissioner shall find appropriate and necessary to protect the interests of the United States.

(b) Tax due before the effective date of the amendment. The section does not permit assessment or reassessment or collection of tax properly abated or refunded pursuant to the section on or before May 28, 1938. Tax due on or before that date, and not so abated or refunded, and still outstanding on the said date, is within the provisions of the amended section and collectibility is determinable in accordance with the amended section the same as in the case

of tax due after such date. Accordingly, a tax due prior to the effective date of the amendment and then collectible under the section may not be assessed or collected thereafter if such assessment or collection would be contrary to the section as amended.

See § 464.8.

If the statutory period for assessment or collection had expired before the effective date of amendment, the section does not revive it. Accordingly, in such situation the tax is not collectible under the amended section, regardless of the bank's financial condition.*†

[Preceding section, in small type, superseded by following section during period covered by this Supplement]

assets or earnings therefrom previously immune become available for tax collection, they will be available only for collection of taxes (including interest and other additions) becoming due after immunity ceases. See example in $464.7 (c).

(b) Tax due before the effective date of the amendments. In the case of a bank within subsection (a), the section does not permit assessment or reassessment or collection of tax abated or refunded, if the abatement or refund was in accordance with the section prior to the amendments by the Revenue Acts of 1938 and 1939.

In the case of a bank within subsection (b) the section does not permit assessment or reassessment of collection, from segregated or unsegregated assets, of tax refunded on or before May 28, 1938, if the refund was in accordance with the section prior to the amendments by the Revenue Acts of 1938 and 1939.

With the exceptions indicated by the preceding two paragraphs, tax due on or before May 28, 1938, and still outstanding on the said date, is within the provisions of the amended section and collectibility is determinable in accordance with the amended section the same as in the case of tax due after such date. Accordingly, a tax due prior to the effective date of the amendments and then collectible under the section may not be assessed or collected thereafter if such assessment or collection would be contrary to the section as amended. See § 464.8.

If the statutory period for assessment or collection had expired before the effective date of the amendments, the section does not revive it. Accordingly, in such situation the tax is not collectible under the amended section, regardless of other circumstances.**. .**tt

§ 464.12 Collection of tax after termination of immunity—(a) General. If, in the case of a bank within paragraph (b), segregated assets (including earnings therefrom), in excess of those necessary for payment of outstanding deposits become available, such excess of segregated assets shall be applied toward satisfaction of accumulated outstanding taxes previously immune under the section, and not barred by the statute of limitations. But see § 464.5. Where sufficient segre[Preceding section, in small type, supergated assets or unsegregated assets are seded by following section during period covavailable, statutory interest shall be col-ered by this Supplement]

§ 464.13 Social Security taxes. These regulations do not relate to Social Security taxes, since the immunity granted by the amended section does not apply to taxes imposed by the Social Security Act.*+

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

revenue

to make

53 Stat. 1292; 49 [T.D. 31, Bureau of

§ 464.13 Social Security taxes. The lating to internal regulations in this part do not relate to seizures. (Sec. 3, Social Security taxes, since the immu-U.S.C., Sup., 783) 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.**††

§ 466.2 Custody. The following officers are hereby authorized and desig

sition pursuant to the provisions of the said Act of Aug. 9, 1939, and any regulations issued thereunder, vessels, vehicles, and aircraft seized pursuant to the said Act:

§ 464.14 Effective date of regulations.nated to hold in custody, awaiting dispoThe regulations in this part are effective as of May 28, 1938, the effective date of the amendments made by section 818 of the Revenue Act of 1938, and section 406 of the Revenue Act of 1939. Treasury Decision 4882, I.R.B. 1939-4, 11 is hereby revoked as of the date of its approval.**††

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(a) the narcotic district supervisor for the district in which the seizure is made,

I when the seizure is made in connection with a violation involving a contraband article covered by section 1 (b) (1) of the said Act; and

(b) the collector of internal revenue

for the district in which the seizure is made, when the seizure is made in connection with a violation involving a contraband article covered by section 1 (b) (2) of the said Act,

Provided, That in the case of any seizure involving contraband articles covered by two or more of the subsections (b) (1), (b) (2) and (b) (3) of section 1 of the said Act, custody shall be in the appropriate officer (as above indicated in this section or in the order relating to seizures involving subsection (b) (3) of the branch of the Treasury service to which the seizing officer belongs. (Sec. 3, 53 Stat. 1292; 49 U.S.C., Sup., 783) [T.D. 31, Bureau of Narcotics, Aug. 31, 1939; 4 F.R. 3841]

§ 466.3 Other duties. The respective officers herein before authorized and designated to hold in custody seized vessels, vehicles, and aircraft under this Act are hereby authorized and designated to perform such other duties with respect to seizures and forfeitures of vessels, vehicles, and aircraft under this Act, as are imposed upon the collectors of customs and appraisers with respect to seizures and forfeitures of vessels and vehicles under the customs laws. (Sec. 4, 53 Stat. 1292; 49 U.S.C., Sup., 784) [T.D. 31, Bureau of Narcotics, Aug. 31, 1939; 4 F.R. 3841]

CHAPTER II-UNITED STATES PROCESSING TAX BOARD OF

REVIEW

DEPARTMENT OF THE TREASURY

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.

§ 601.2 Admission to practice. Only the following classes of individuals whom

Personal representation in lieu of the Board finds, upon consideration of

counsel.

Sec. 601.1 601.2

Business hours.

Admission to practice.

601.3

601.4

Form and style of papers.

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Initiation of a proceeding; petition.

Designation of parties.

601.11 Joinder of issue.

601.12 Motions; general.

their applications, to be citizens of the United States, of good moral character, and to possess the requisite qualifications, may be admitted to practice before the Board:

(a) Attorneys at law who are admitted to practice before the highest court of

601.13 Amended and supplemental plead- any State, Territory, or the District of

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601.24 Submission without personal appear- a business or profession other than the

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practice of law or certified public accountancy and who do not maintain offices apart from such employment with their services available to the general

General provisions as to depositions. public will not be eligible for admis

Settlement.

601.32 Fees.

601.33 Fees and mileage.

sion to practice before the Board. Each application for admission to

601.34 Computation of time; Sundays and practice shall be filed with the Board

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§ 601.1 Business hours. The office of the Board at Washington, D. C., will be open each business day, excepting Saturdays, from 9 o'clock a. m. to 4:30 o'clock p. m., and on Saturdays from 9 o'clock a. m. to 1:00 o'clock p. m.*†

§§ 601.1 to 601.35, inclusive, issued under the authority contained in sec. 906 (d), 49 Stat. 1749; 7 U.S.C., Sup., 648 (d).

tIn §§ 601.1 to 601.35, inclusive, the numbers to the right of the decimal point correspond with the respective rule numbers in

on the form provided therefor. Forms will be furnished upon request to the Board. The application shall be accompanied by a certificate of the clerk of the court in which the applicant is admitted to practice to the effect that he standing, or a certificate by the proper has been so admitted and is in good State, Territorial, or District authority to the effect that the applicant is a certified public accountant in good standing, duly qualified, and entitled to practice in such State, Territory, or the District of Columbia. Each applicant shall

take the oath on the form provided by the Board.

A register will be maintained by the Board, in which will be entered the names of all who have been admitted to practice.

The Board may, in its discretion, but only after affording an opportunity to be heard, deny admission to, suspend, or disbar any one of the foregoing who, it finds, does not possess the requisite qualifications, or is lacking in character, integrity, or proper professional conduct.

The Board may require any practitioner before it to furnish a statement under oath of the terms and circumstances of his employment in any proceeding. *†

§ 601.3 Personal representation in lieu of counsel. Any individual petitioner or member of a petitioner partnership may appear for himself or such partnership upon adequate identification to the Board. A petitioner corporation may be represented by a bona fide and duly authorized officer of the corporation upon permission granted, in its discretion, by the Board or the presiding officer.*†

§ 601.4 Form and style of papers. All papers filed with the Board shall be either printed or typewritten on plain white paper. If typewritten they shall be on one side of the paper, which shall be 82 inches wide and 11 inches long, and fastened only on the left side; originals shall be on paper weighing not less than 16 pounds to the ream; copies shall be legible, but may be on any weight paper; citations shall be underscored. If printed, they shall be in 10- or 12-point type, on good unglazed paper, 5% inches wide by 9 inches long with inside margin not less than 1 inch wide, and with double-leaded text and single-leaded quotations; citations shall be in italics. Except when otherwise provided in this part, a signed original and four clear, conformed copies of all papers shall be filed. Whenever any paper is filed in more than one proceeding, as a motion to consolidate proceedings or in proceedings already consolidated, one additional copy shall be filed for each additional proceeding.

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(b) Proper allegations showing jurisdiction in the Board.

(c) A statement of the amount of the claim for refund disallowed by the Commissioner, a description of the processing tax or taxes involved, and, as nearly as may be computed, the amount thereof in controversy.

(d) Clear and concise assignments, individually numbered, of each and every error which the petitioner alleges to have been committed by the Commissioner in the disallowance, in whole or in part, of the claim for refund.

(e) Clear and concise statements, individually numbered, of the facts upon which the petitioner relies as sustaining the assignments of error.

(f) A designation of the place where the petitioner desires a hearing, which place may be either in (1) Washington, D. C., (2) the collection district in which is located the petitioner's principal place of business, or (3) any place which may have been designated by the Commissioner and the petitioner by written stipulation. (A copy of such stipulation must be attached.)

(g) A prayer, setting forth the relief sought by the petitioner.

(h) The signature of the petitioner or that of his counsel. The signature of counsel shall be in individual and not in

The proper caption shall be placed on firm name. The petition of a fiduciary all papers filed.*+ shall be signed by counsel or by one or

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