ished by a fine not exceeding one thousand dollars, or by imprisonment not exceeding one year, or both, at the discretion of the court. FAILURE TO MAKE TRUE RETURNS; FALSE RETURNS; APPLICABILITY OF GENERAL REVENUE LAWS; JURISDICTION TO COMPEL TESTIMONY AND PRODUCTION OF BOOKS, ETC. Eighth. If any of the corporations, joint stock companies or associations, or insurances companies, aforesaid, shall refuse or neglect to make a return at the time or times hereinbefore specified in each year, or shall render a false or fraudulent return, such corporation, joint stock company or association, or insurance company, shall be liable to a penalty of not less than one thousand dollars and not exceeding ten thousand dollars. Any person authorized by law to make, render, sign, or certify any return who makes false or fraudulent return, or statement, with intent to defeat or evade the assessment required by this section to be made, shall be guilty of a misdemeanor, and shall be fined not exceeding one thousand dollars or be imprisoned not exceeding one year, or both, at the discretion of the court, with the costs of prosecution. All laws relating to the collection, remission, and refund of internal-revenue taxes, so far as applicable to and not inconsistent with the provisions of this section, are hereby extended and made applicable to the tax imposed by this section. Jurisdiction is hereby conferred upon the circuit and district courts of the United States for the district within which any person summoned under this section to appear to testify or to produce books, as aforesaid, shall reside, to compel such attendance, production of books, and testimony by appropriate process. Remedy by suit against collector where taxes have been wrongfully collected is not made exclusive by provisions that all laws relating to collection, remission, and refund of taxes, so far as applicable, are extended to the corporation excise tax. The Court of Claims has jurisdiction over claims against the United States for refunding taxes paid under corporation excise tax law under duress and protest to the collector and by him turned over to the United States. (United States v. Emery, Bird, Thayer Realty Co., 237 U. S., 28; T. D. 2188.) Penalty for failure to make prescribed returns. (T. D. 1692.) Penalty prescribed is constitutional; acceptance of return by Commissioner is not a waiver of the penalty. (T. D. 1864.) Where corporations have gone out of business, leaving no assets, no proceedings to be instituted for penalty for failure to make return; assets distributed among stockholders available for collection of tax but not for penalty. (T. D. 1852.) REFUND OR ABATEMENT OF PENALTY TAXES Act of March 3, 1913 (37 Stat., 734). That any corporation, joint-stock company, association, or any insurance company subject to the special excise tax provided by section thirty-eight of the act of August fifth, nineteen hundred and nine, known as the special excise corporation-tax law, which has been or may be compelled to pay or become liable for any additional tax within the provisions of subsection five of said section thirty-eight, which additional tax has been or may hereafter be imposed for a neglect to file a return as provided in said corporation-tax law on or before the first of March of any year, may, within one year after the passage of this act or within one year after the date of notice of assessment where such notice is given after the passage of this act, make application to the Commissioner of Internal Revenue for a refund of such additional tax. And the Commissioner of Internal Revenue, with the advice and consent of the Solicitor of Internal Revenue, is hereby directed to remit, abate, or pay back all such additional taxes in excess of $100 for any single year whenever in any case it appears to his satisfaction that the additional tax was assessed or imposed solely because of a neglect to make a return at the time or times specified in said act, and without any intention or design on the part of any officer of such corporation, joint-stock company, association, or insurance company to hinder or delay the United States in the collection of the tax originally assessed. Claim for abatement or refund required to be made on Form 47 or 46, respectively; claims required to be accompanied by affidavit of corporation's president, vice president, or other principal officer, and its treasurer or assistant treasurer, stating that neglect to make return was without intent or design to hinder or delay the United States in collection of tax, etc. (T. D. 1838.) Sec. [Including Gift Tax imposed by the Revenue Act of 1924] CONCORDANCE WITH UNITED STATES CODE (Secs. 1091-1118, 1131-1136, U. S. C.) 845 858 864 870 871 872 The law upon which chapter 20, "Estate and Gift Tax," of the code is based will be found under the head of Prior Acts, Revenue Act of 1924, this chapter. The sequence of the code sections is the same as in Title III, Revenue Act of 1924, though the sequence of numbering is higher. Black-face numerals in the margin of the text indicate the section numbers of title 26,"Internal Revenue," of the code, unless otherwise stated. REVENUE TAX OF 1926 TITLE III.-ESTATE TAX2 Sec. 305. Tax payable one year after de- 319. Refund after filing petition with cedent's death. 306. Examination of returns. 307. Deficiency in tax. 308. Notice of deficiency; right of ap Board of Tax Appeals. 320. Penalties. 321. Estates administered at the United States Court for China. peal; jurisdiction of Board of 322. Section 301, Revenue Act of 1924, 309. Interest upon deficiency after 310. Limitation on assessment. rates under act of 1924, 323. Section 303 (a) and (b), act of 324. Amending section 319 of the act 325. Refund of overpayment under acts Addenda. Subsequent to the compilation of the matter herein contained, as of Apr. 1, 1927, the case of Nichols v. Coolidge (U. S. Sup. Ct., May 31, 1927) has been published as Treasury Decision 4072, affecting the attitude of the Bureau relative to transfers made by decedents in contemplation of or intended to take effect in possession or enjoyment at or after death. The regulations based upon the several revenue acts have been amended to give effect to this decision, which, it is held by the Bureau, precludes from estates subject to tax properties transferred prior to Sept. 8, 1916. Regulations 70. Terms con 'n.ed. "Executor." "Net estate." Month." ** Collector.** SEC. 300. When used in this title (a) The term "executor" means the executor or administrator of the decedent, or, if there is no executor or administrator appointed, qualified, and acting within the United States, then any person in actual or constructive possession of any property of the decedent; (b) The term "net estate" means the net estate as determined under the provisions of section 303; (c) The term "month" means calendar month; and (d) The term "collector" means the collector of internal revenue of the district in which was the domicile of the decedent at the time of his death, or, if there was no such domicile in the United States, then the collector of the district in which is situated the part of the gross estate of the decedent in the United States, or, if such part of the gross estate is situated in more than one district, then the collector of internal revenue of such district as may be designated by the Commissioner. Tax levied on SEC. 301. (a) In lieu of the tax imposed by Title III transfers of estates of the Revenue Act of 1924, a tax equal to the sum of the following percentages of the value of the net estate (determined as provided in section 303) is hereby imposed upon the transfer of the net estate of every decedent dying after the enactment of this act, whether a resident or nonresident of the United States: hereafter. Rates. 1 per centum of the amount of the net estate not in excess of $50,000; 2 per centum of the amount by which the net estate exceeds $50,000 and does not exceed $100,000; 3 per centum of the amount by which the net estate exceeds $100,000 and does not exceed $200,000; 4 per centum of the amount by which the net estate exceeds $200,000 and does not exceed $400,000; 5 per centum of the amount by which the net estate exceeds $400,000 and does not exceed $600,000; 6 per centum of the amount by which the net estate exceeds $600,000 and does not exceed $800,000; 7 per centum of the amount by which the net estate exceeds $800,000 and does not exceed $1,000,000; 8 per centum of the amount by which the net estate exceeds $1,000,000 and does not exceed $1,500,000; 9 per centum of the amount by which the net estate exceeds $1,500,000 and does not exceed $2,000,000; 10 per centum of the amount by which the net estate exceeds $2,000,000 and does not exceed $2,500,000; 11 per centum of the amount by which the net estate exceeds $2,500,000 and does not exceed $3,000,000; 12 per centum of the amount by which the net estate exceeds $3,000,000 and does not exceed $3,500,000; 13 per centum of the amount by which the net estate exceeds $3,500,000 and does not exceed $4,000,000; 14 per centum of the amount by which the net estate exceeds $4,000,000 and does not exceed $5,000,000; 15 per centum of the amount by which the net estate exceeds $5,000,000 and does not exceed $6,000,000; 16 per centum of the amount by which the net estate exceeds $6,000,000 and does not exceed $7,000,000; 17 per centum of the amount by which the net estate exceeds $7,000,000 and does not exceed $8,000,000; 18 per centum of the amount by which the net estate exceeds $8,000,000 and does not exceed $9,000,000; 19 per centum of the amount by which the net estate exceeds $9,000,000 and does not exceed $10,000,000; 20 per centum of the amount by which the net estate exceeds $10,000,000. for estate, etc., (b) The tax imposed by this section shall be credited with the amount of any estate, inheritance, legacy, or taxes of States, succession taxes actually paid to any State or Territory etc. or the District of Columbia, in respect of any property included in the gross estate. The credit allowed by this subdivision shall not exceed 80 per centum of the tax imposed by this section, and shall include only such taxes as were actually paid and credit therefor claimed within three years after the filing of the return required by section 304. Maximum. cluded. SEC. 302. The value of the gross estate of the decedent shall be determined by including the value at the time Property inof his death of all property, real or personal, tangible or intangible, wherever situated (a) To the extent of the interest therein of the decedent at the time of his death; (b) To the extent of any interest therein of the surviving spouse, existing at the time of the decedent's death as dower, curtesy, or by virtue of a statute creating an estate in lieu of dower or curtesy; Decedent's in terest therein. Dower or curte sy interests. contemplation of years hereafter, (c) To the extent of any interest therein of which the Transfers in decedent has at any time made a transfer, by trust or death. otherwise, in contemplation of or intended to take effect in possession or enjoyment at or after his death, except in case of a bona fide sale for an adequate and full consideration in money or money's worth. Where within Within two two years prior to his death but after the enactment of of over $5,000. this act and without such a consideration the decedent has made a transfer or transfers, by trust or otherwise, of any of his property, or an interest therein, not admitted or shown to have been made in contemplation of or intended to take effect in possession or enjoyment at or after his death, and the value or aggregate value, at the time of such death, of the property or interest so transferred to any one person is in excess of $5,000, then, to the extent of such excess, such transfer or transfers shall be deemed and held to have been made in contemplation of death within the meaning of this title. Any transfer of a material part of his property in the nature Transfers prior of a final disposition or distribution thereof, made by the hitherto. decedent within two years prior to his death but prior to |