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ment and whether or not the attorney or agent knows of his own knowledge that the facts contained therein are true.

CONFERENCE TO BE PREARRANGED IX. Conferences with taxpayers or their representatives will not ordinarily be held without previous arrangement. Cases in which taxpayers or their representatives can submit some unusual reason for requesting an immediate conference without previous arrangement will be given consideration by Bureau officials charged with the arrangement of conferences, who may, if the circumstances warrant, make an exception to the rule.

In order that the case under consideration may be closed at one conference, if at all possible, the requirements of paragraph VIII of this circular to the effect that the brief submitted in advance of conference must meet all issues raised will be strictly enforced, and another conference will not be granted on the same case except to meet new issues raised by the Bureau in the course of the first conference which could not have been anticipated prior to such conference.

The Commissioner reserves the right to withhold making the above exceptions in any specific case.

If the power of attorney authorizes the attorney or agent to do one or both of the above acts and some other acts or acts, enrollment will be considered necessary, notwithstanding that the agent or attorney does not expect to use all of the power conferred upon him. SPECIFIC AUTHORITY REQUIRED IN VINSON ACT

CASES A power of attorney authorizing an attorney or agent to represent a taxpayer before the Bureau of Internal Revenue in connection with income tax matters will not be recognized by the Bureau as evidence of an attorney's or agent's authority to act as representative for a contractor or subcontractor in connection with excess profit liability under section 3 of the Vinson Act (48 Stat., 503), as amended, as applied to Navy contracts and contracts for aircraft for the Army, and to subcontracts made with respect to such contracts. In such cases a separate power of attorney must be secured specifically authorizing the attorney or agent to appear in behalf of his client.

RECOGNITION OF UNENROLLED EMPLOYEES OF

QUALIFIED ATTORNEYS OR AGENTS

LETTERS ARRANGING CONFERENCES TO ADVISE OF

REQUIREMENTS

X. Unenrolled employees of enrolled attorneys or agents will not be recognized in any matter by offices of the Bureau except for the purpose of filing papers or securing information as to the status of cases. Recognition for the latter purpose will be given only when the employee presents in each case written authority from his employer to act as the latter's substitute in obtaining the information desired regarding status and when the power of attorney of his employer in each case provides for the substitution of such employee. To facilitate recognition of such employees, it is requested that the employee present at the time of making inquiry concerning any case the receipt for the power of attorney issued to his employer by the taxpayer in that case and the receipt for the substitute power of attorney issued to him. (These receipts are furnished 1f requested when the powers of attorney are filed.)

XII. Letters arranging conferences will apprise the taxpayer or his representative of the requirements as to powers of attorney, the necessity of being enrolled to practice before the Department, and to whom he should apply for enrollment, unless it is known that the addressee is aware of the requirements. Owing to the expense involved, it will not be the practice, except in rare cases, to incorporate the above requirements in telegrams. Where sufficient time intervenes between the date of the telegram and the conference the telegram will be confirmed by letter and conference requirements stated.

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PRACTITIONERS MUST CONDUCT THEMSELVES IN

AN ETHICAL MANNER

POWERS OF ATTORNEY AND ENROLLMENT RE

QUIRED OF AGENTS AND ATTORNEYS HANDLING MATTERS BY CORRESPONDENCE

XI. Where recognition is desired through correspondence with the Department, enrollment and power of attorney requirements must be met by attorneys or agents even though no actual appearance is made before the Department. If a proper power of attorney is filed authorizing only one of the following acts by the attorney or agent, enrollment will not be required:

Authority to sign but not to prosecute any claim of the taxpayer.

Authority to inspect or receive copies of returns where Executive order or regulations permit such action by agent.

XIII. Attorneys or agents representing taxpayers before the Bureau are expected at all times to conduct themselves in an ethical manner, and will be held strictly accountable for the withholding of known material information or for any deliberately false or misleading statement.

whoever shall knowingly and willfully falsify or conceal or cover up by any trick, scheme, or device a material fact, or make or cause to be made any false or fraudulent statements or representations, or make or use or cause to be made or used any false bill, receipt, voucher, soll, account, claim, certificate, affidavit, or deposition, knowing the same to contain any fraudulent or fictitious statement or entry, in any matter within the jurisdiction of any department or agency of the United States or of any corporation in which the United States of America is a stockholder shall be fined 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 intent 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.)

which he gained knowledge while in the Gofernment 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 terminstion 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 par. ticular departmental or field section in which was pending the matter to handle which con. sent 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 fille 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 associ. ated with, and will not be associated with, any former employee who has gained knowl. edge of the case while employed by the Treas. ury 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 amdavit shall not be suficient if disproved by an examina. tion of the files and records pertaining to the case. Applications for consent should be di. rected 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 filled 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 Treas. ury Department in connection with any mat. ter 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

TORNEY IN SPECIAL CASES WHICH MUST BE NET
IN ADDITION TO GENERAL REQUIREMENTS

XV. Dissolved partnership. A power of attorney to act with respect to matters invols

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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. If 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.

XVI. Dissolved corporation. If a. liquidating trustee, or trustee under dissolution, has been appointed, or if a trustee derives authority under à 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

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.

0. That it is or is not of record in any court.

c. The beneficiaries.

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said draft, warrant, or check. In no case shall the delivery of a final draft, warrant, or check to the client be delayed more than 60 days by reason of failure to fille such agree. ment. Deliveries of all checks in payment of refunds will be made by or through the office of the collector to whom the tax was paid.

REQUIREMENTS APPLICABLE TO FIELD OFFICES

XXII. The foregoing conference and practice requirements apply to all ofices in the Internal Revenue Service.

As to conference practice relative to taxes within the jurisdiction of The Tax Court, see also sections dealing specially with such taxes.

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 Requirements" 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 to taxes

was inserted in lieu thereof.

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, and that the trustee appointed thereby is still acting.

Self-serving affidavits by the trustee in this connection are not acceptable. In the event that the trustee appointed in the original trust instrument is no longer acting and has been replaced by another trustee, documentary evidence of the appointment of the new trustee must be submitted. In cases where there are more than one trustee appointed, all must join, unless it is shown that less than all have authority to act.

XXI. Checks in payment of refunds. The Bureau is not bound to deliver any check in payment of refund of internal-revenue taxes, penalties, or interest to a representative of any taxpayer acting under authority evidenced by a power of attorney. However, it will be the general policy of the Bureau to mall such checks in care of an enrolled attorney or agent who has filed power of attorney from the principal, specifically authorizing him to receive but not to indorse such check, provided that such power of attorney shall have been filed in sufficient time for the section or division preparing the certificate of overassessment to show thereon the mailing address as "care of" the attorney or agent. Where an attorney or agent has more than one address, request to mail the check to another address than is shown in the power of attorney will not be granted unless the address shown in the power of attorney Is no longer that of the attorney or agent. In the event that a power of attorney is filed specifically authorizing more than one attorney or agent to receive checks on the taxpayer's behalf, and such attorneys or agents have different addresses, the Bureau will not mall the check in care of any of the attorneys or agents named in the power of attorney but will mail the check direct to the taxpayer, unless a statement is furnished, signed by all of the attorneys or agents named in the power of attorney, requesting that the check be malled in care of one of their number. Furthermore, it will be the policy of the Bureau not to mail checks in payment of refunds to an attorney or agent who holds authority to receive such check by reason of a substitute power of attorney obtained from the attorney or agent designated by the taxpayer.

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

$ 601.2 Income and ercess profit 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.

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(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 filled 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 949A. 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 alrcraft 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 hasis, or (b) after the close of the contracting party's taxable year ending in 1948, in the case of a contracting party making Its income tax return on a flscal year basis.

"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 1042-0" 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 Staf.

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.

8 601.4 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.

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 filed.

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

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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. 6538, T.D. 5544, and T.D. 5551; in the fifth paragraph, T.D. 5529; in the sixth paragraph,

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