not more than $10,000 or imprisoned not more than ten years, or both." (Section 80, Title 18, United States Code.) "Any person who willfully aids or assists in, or procures, counsels, or advises the preparation or presentation under, or in connection with any matter arising under, the internal revenue laws, of a false or fraudulent return, affidavit, claim, or document, shall (whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document) be guilty of a felony, and, upon conviction thereof, be fined not more than $10,000, or imprisoned for not more than five years, or both, together with the costs of prosecution." (Section 3793 (b) 1 of the Internal Revenue Code.) For gross misconduct the Commissioner may refuse to recognize any person as an attorney or agent in any particular case. Attempting to influence the conduct of any official or employee of the Bureau in any case or other proceeding pending before the Bureau by the use of threats, false accusations, duress, or by the offer of any special inducement or promise of advantage, or by the bestowing of gifts or favors upon officials or employees before whom an attorney or agent is appearing is considered grounds for disbarment from practice before the Treasury Department. "Whosoever shall promise, offer, or give, or cause or procure to be promised, offered, or given, any money or other thing of value, or shall make or tender any contract, undertaking, obligation, gratuity, or security for the payment of money, or for the delivery or conveyance of anything of value, to any officer of the United States, or to any person acting for or on behalf of the United States in any official function, with in tent to influence his decision or action on any question, matter, cause, or proceeding which may at any time be pending, or which may by law be brought before him in his official capacity, or in his place of trust or profit, or with intent to influence him to commit or aid in committing, or to collude in, or allow, any fraud, or make opportunity for the commission of any fraud, on the United States, or to induce him to do or omit to do any act in violation of his lawful duty, shall be fined not more than three times the amount of money or value of the thing so offered, promised, given, made, or tendered, or caused or procured to be so offered, promised, given, made or tendered, and imprisoned not more than three years." (Section 91, Title 18, United States Code.) EFFECT OF PREVIOUS CONNECTION WITH THE UNITED STATES GOVERNMENT XIV. No enrolled person or other person authorized to appear before the Treasury Department without enrollment shall represent a claimant before the Treasury Department in any matter to which such person, as officer or employee of the United States, gave personal consideration or as to the facts of which he gained knowledge while in the Government service. No former officer, clerk, or employee of the Treasury Department shall act as attorney or agent, or as the employee of an attorney or agent, within two years after the termination of such Treasury employment, in any matter pending in such Department during the period of his employment therein, unless he shall first obtain the written consent thereto of the Secretary of the Treasury, or his duly authorized representative. This consent will not be granted unless it appears (1) that the applicant was not, during the period of two years immediately preceding the date of application, employed in the particular departmental or field section in which was pending the matter to handle which consent is sought, provided that this requirement shall not apply to persons employed in an administrative capacity such as head of a unit, division, or section, or employed as a reviewer or conferee or in an advisory capacity, and (2) that employment as an agent or attorney is not prohibited by title 5, section 99, United States Code, or other law, or by the regulations of the Treasury Department. Such applicant shall be required to file an affidavit to the effect that he gave no personal consideration to such matter and had no knowledge of the facts involved in such matter while he was employed in the Department, and that he is not now associated with, and will not be associated with, any former employee who has gained knowledge of the case while employed by the Treasury Department, and that his employment is not prohibited by title 5, section 99, United States Code, or other law, or by the regulations of the Treasury Department. The statements contained in such affidavit shall not be sufficient if disproved by an examination of the files and records pertaining to the case. Applications for consent should be directed to the Committee on Practice on Form 901 and should state the former connection with the Department of the applicant and identify the matter in which the applicant desires to appear. The applicant shall be promptly advised as to his privilege to appear in the particular matter, and this notice shall be filed by him in the record of the case. Nor shall any enrolled person knowingly (1) assist a person who has been employed by a client to represent him before the Treasury Department in connection with any matter to which such person gave personal consideration or as to the facts of which such person gained personal knowledge while in the Government service, or (2) accept assistance from any such person in connection with any such matter, or (3) share fees with any such person in connection with any such matter. INSTRUCTIONS FOR EXECUTION OF POWER OF AT- ing the affairs of a dissolved partnership must be signed by all of the former partners. In case some of the partners are dead, their legal representatives must sign in their stead. (See paragraph XVIII.) If however, under the laws of the particular State, the surviving partners at the time of the execution of the power of attorney have exclusive right to the control and possession of the firm's assets for the purpose of winding up its affairs, their signatures alone will be sufficient. only the surviving partners sign the power of attorney, a copy of the pertinent provisions of the State law under which they claim authority, exclusive of the legal representatives of the deceased partners, should be noted and citation given thereto. If XVI. Dissolved corporation. If a liquidating trustee, or trustee under dissolution, has been appointed, or if a trustee derives authority under a statute of the State in which the corporation was organized the power of attorney should be executed by such trustee. If there is more than one trustee, all must join unless it is established that less than all have authority to act in the premises. The power of attorney must be accompanied by a copy of the instrument under which the trustee derives his authority, properly authenticated, or if the authority is derived under a State statute, the statute should be cited and quoted, and an affidavit by a third party, setting forth the facts required by the statute as a precedent to the vesting of the authority in said trustee must be furnished. It must also appear in the case of any trustee that his authority has not been terminated. If there is no trustee, then a power of attorney executed before a notary public by a sufficient number of individuals to make up a representation of a majority in the voting stock of the corporation at the date of dissolution will be accepted for purposes of conference and correspondence relating to the tax liability in the particular case. Such instrument must show the total number of outstanding shares of voting stock at the date of dissolution and the number held by each signatory to the power of attorney. The instrument must also contain positive averments as to the nonexistence of any trustee, and the date of dissolution must appear. XVII. Insolvent taxpayer. A certificate from the court having jurisdiction over the insolvent should be furnished showing the appointment and qualification of the trustee or receiver, and it should appear that the authority has not terminated. In cases pending before a district court of the United States an authenticated copy of the order approving the bond of the trustee will meet this requirement. If an attorney has been appointed under authority of court for the trustee or receiver, a copy of the court order appointing such attorney (where he is to represent the trustee) should be furnished. If no attorney has been appointed, the trustee or receiver should execute the power of attorney, the acknowledgment or witness 728472-48-SUPP. X-BK. 3-92 ing thereof to be the same as in the case of an individual, and the above-described evidence showing the appointment of the trustee or receiver furnished therewith. If the trustee or receiver does not wish to appoint an attorney, he will be recognized upon establishing his authority in the manner above described. XVIII. Deceased taxpayer. The executor or administrator should execute the power of attorney, which must be accompanied by a short-form certificate (or authenticated copies of letters testamentary or letters of administration) showing that his authority is in full force and effect at the time such evidence is submitted. The executor or administrator will be recognized in his own right if he does not wish to appoint an attorney or agent, upon submission of the above-described court certificate, and such executor or administrator is not required to be enrolled to practice. In the event that the executor has been discharged and a trustee under the will is acting, the power of attorney must come from the trustee, and evidence of the discharge of the executor and of the appointment of the trustee must be submitted with the power of attorney. In such cases, where the executor is discharged and the estate is distributed to the residuary legatees, the power of attorney must come from the residuary legatee or legatees, and be accompanied by a statement from the court certifying to the discharge of the executor and naming the residuary legatees and indicating the proper share to which each is entitled. In the event that the decedent died intestate and the administrator had been discharged or none was ever appointed, the power of attorney must come from the distributees and be accompanied by evidence of the discharge of the administrator, if one had been appointed, and affidavits and such other evidence as can be adduced tending to show the relationship to the deceased of the signatories to the power of attorney and the right of each of them to the respective shares claimed under the law of the domicile of the deceased. XIX. Guardians and other fiduciaries appointed by a court of record. The power of attorney should be executed by the fiduciary and must be accompanied by a court certifcate or court order showing that such fiduclary has been appointed and that his appointment has not been terminated. XX. Trustee under deed, declaration, etc. Powers of attorney must be executed by the trustee and be accompanied by documentary evidence of the authority of the trustee to act. Such evidence may be either a copy of the trust instrument, properly certified, or a certified copy of extracts from the trust instrument, showing a. Date of instrument. b. That it is or is not of record in any court. c. The beneficiaries. Page 4321 Title 26-Internal Revenue d. The appointment of the trustee, the authority granted, and such other information as may be necessary to show that such authority extends to Federal tax matters. e. That the trust has not been terminated, Self-serving affidavits by the trustee in this XXI. Checks in payment of refunds. The Where there is a contest between members of a dissolved firm or between two or more attorneys or agents acting under the same power of attorney as to which one is entitled to prosecute a matter pending before the Bureau or to receive a draft, warrant, or check, the client only shall thereafter be recognized, unless the members or survivors of the dissolved firm, or the contesting attorneys or agents, file an agreement signed by all designating which of them shall be entitled to prosecute such matter or to receive the Page 4322 CODIFICATION: § 601.1 (d) (4) was amended in the following respects by Statement, Acting Secretary of the Treasury, Feb. 10, 1947, 12 F.R. 950: 1. The text set forth above, beginning "Such Conference and Practice Require ments" and including paragraph XXII, was added immediately preceding the final sen tence. 2. The final sentence was deleted and the undesignated paragraph set forth above beginning "As to conference practice relative was inserted in lieu to taxes thereof. and excess profit § 601.2 Income taxes. (c) Examination of returns and determination of correct liability. (1) General. In any case in which the closing action in the field is agreed to by the taxpayer, but is disapproved upon post review in Washington, and the internal revenue agent in charge and the taxpayer or his representative are unable to reach an agreement with respect to the issue, the taxpayer or his representative may, if he so desires, be granted a hearing in the office of the internal revenue agent_in charge before a representative of the Income Tax Unit in Washington. (g) Description of forms. Form 949. Annual report of profit on Navy contracts. This form of report is required under the provisions of the Vinson Act, as amended, to be filed by every contracting party completing within its taxable year a Navy contract or subcontract for the construction or manufacture of any completed Naval vessel or aircraft or any portion thereof entered into (a) after December 31, 1945, in the case of a contracting party making its income tax return on the calendar year basis, or (b) after the close of the contracting party's taxable year ending in 1946, in the case of a contracting party making its income tax return on a fiscal year basis. Form 949-A. Annual report of profit on Army contracts. This form of report is required under the provisions of the Vinson Act, as amended, to be filed by every contractor or subcontractor completing within its taxable year an Army contract for the construction or manufacture of any completed Army aircraft or any portion thereof, entered into (a) after December 31, 1945, in the case of a contracting party making its income tax return on the calendar year basis, or (b) after the close of the contracting party's taxable year ending in 1946, in the case of a contracting party making Its income tax return on a fiscal year basis. * Form 1042-C. Annual return of income tax withheld from French addressees. This return (in duplicate) is required to be made by all United States withholding agents who have paid to persons whose addresses of record are in France any fixed or determinable annual or periodical income. There shall be reported on this return, not only items of income listed on Form 1042, but also items of interest listed on quarterly returns, Form 1012, including items of interest where the liability for withholding is only 2 percent. Form 1042-D. Annual return of income tax withheld from United Kingdom addressees. This return (in duplicate) is required to be made by all United States withholding agents who have paid to residents of the United Kingdom or corporations managed and controlled in the United Kingdom any fixed or determinable annual or periodical income. There shall be reported on this return not only items of income listed on Form 1042, but also items of income exempt from tax under the United StatesUnited Kingdom income tax Convention. However, items of interest need not be listed where Form 1001-UK (in duplicate), or substitute Form 1001-UK (in duplicate), has been filled. CODIFICATION: § 601.2 was amended in the following respects during the period covered by this Supplement: 1. Section 601.2 was amended as follows by Statement, Acting Secretary of the Treasury, Apr. 18, 1947, 12 F.R. 2560: a. In the third paragraph of paragraph (a) citing Regulations 111, T.D. 5546 was incorporated by reference. b. In the third sentence of paragraph (b) (4) the word "receipt" was changed to "statement". c. In the first sentence of the third paragraph of paragraph (c) (1) the word "receipt" was changed to "statement". d. In the last sentence of the first paragraph of paragraph (d) the word "receipt" was changed to "statement". e. In paragraph (g) the words "or for furnishing copies to State Governments, etc." were deleted from the paragraph headed "Form W-2b", the paragraphs headed "Form 949" and "Form 949-A" set forth above were added immediately after the paragraph headed "Form 936", and the paragraphs headed "Form 1042-C" and "Form 1042-D" set forth above were added immediately after the paragraph headed "Form 1042-B". 2. The parenthetical matter in the last paragraph of paragraph (c) (1) was amended to read "(see § 601.1 (d) (4))", by Statement, Acting Secretary of the Treasury, Feb. 10, 1947, 12 F.R. 953. 3. The undesignated paragraph set forth above was added at the end of paragraph (c) (1) by Statement, Acting Secretary of the Treasury, Aug. 12, 1947, 12 F.R. 5485. § 601.3 Technical Staff. CODIFICATION: In § 601.3 (b) the first sentence following the first quotation was amended to read "In general the practice and conference procedure before the Technical Staff is governed by Treasury Department Circular 230 (31 CFR Part 10), and the Bureau of Internal Revenue Conference and Practice Requirements (see § 601.1 (d) (4))", by Statement, Acting Secretary of the Treasury, Feb. 10, 1947, 12 F.R. 953. § 601.4 Estate and gift taxes. * (c) Examination of estate and gift tax returns and determination of correct tax liability. If a field determination to which the taxpayer has agreed is disapproved upon post review in Washington and the taxpayer or his representative and the internal revenue agent in charge are unable to reach an agreement with respect to the issue, the taxpayer or his representative may, if he so desires, be granted a hearing in the office of the internal revenue agent in charge before a representative of the Miscellaneous Tax Unit in Washington. CODIFICATION: The undesignated paragraph set forth above was inserted immediately preceding the last paragraph of § 601.4 (c) by Statement, Acting Secretary of the Treasury, Aug. 12, 1947, 12 F.R. 5485. § 601.8 Alcohol Tax Unit procedure. CODIFICATION: In § 601.8 (a) (3) Treasury Decision 5535 was incorporated by reference in the second paragraph, Sept. 12, 1946, 11 F. R. 10112. The following Treasury Decisions were incorporated by reference by Statement, Acting Secretary of the Treasury, May 16, 1947, 12 F.R. 3220: In the second paragraph, T.D. 5550; in the fourth paragraph, T.D. 5538, T.D. 5544, and T.D. 5551; in the fifth paragraph, T.D. 5529; in the sixth paragraph, T.D. 5540 and T.D. 5543; in the seventh paragraph, T.D. 5528; in the ninth paragraph, T.D. 5527; in the tenth paragraph, T.D. 5541; in the twelfth paragraph, T.D. 5542; in the nineteenth paragraph, T.D. 5537; and in the twenty-first paragraph, T.D. 5539. § 601.11 Excess Profits Tax Council; Appellate functions and procedures un der section 722 of the Internal Revenue Code. CODIFICATION: In § 601.11 (a) the parenthetical matter in the last sentence of the second paragraph was amended to read "(see § 601.1 (d) (4))" by Statement, Acting Secretary of the Treasury, Feb. 10, 1947, 12 FR 953. |