check is not paid by the bank on which it is drawn, the employer by whom such check has been tendered shall remain liable for the payment of the contribution and for all legal penalties and additions to the same extent as if such check had not been tendered.

[Board Order 50-219, 24 FR 10200, Dec. 17, 1959]

§ 345.11 When fractional part of cent may be disregarded.

In the payment of employers' contributions to the Board a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to 1 cent.

[Board Order 39-664, 4 FR 4372, Oct. 26, 1939]

§ 345.12 Adjustments.

(a) In general. Section 8(d) of the act provides that if more or less than the correct amount of employer's contribution is paid with respect to any compensation, proper adjustments with respect to the contribution shall be made, without interest, in subsequent contribution payments by the same employer, under regulations prescribed by the Board.

(b) Compensation adjustment. A compensation adjustment is the amount of any adjustment reported by an employer on Form BA-4 of the compensation of an individual employ

ee.

(c) Adjustment of contributions. (1) For employers reporting contributions quarterly, all adjustments of contributions based on compensation adjustments shall be accounted for by the employer on the contribution report for the same quarter in which the Form BA-4 reflecting the compensation adjustments is filed with the Board.

(2) For employers reporting contributions annually, the aggregate total of all adjustments of contributions based on compensation adjustments shall be accounted for by the employer on the contribution report for the same calendar year in which Forms BA-4 reflecting the compensation adjustments are filed with the Board.

(3) If less than the correct amount of contributions is paid for any previous calendar quarter or calendar year because of an error that does not constitute a compensation adjustment as defined in paragraph (b) of this section, the employer shall adjust the error by (i) reporting the additional amount due and payable by reason of the underpayment as additional contribution on his next report filed after discovery of the error and (ii) paying the amount thereof to the Board at the time such report is filed.

If more than the correct amount of contributions is paid for any previous calendar quarter or calendar year because of an error that does not constitute a compensation adjustment as defined in paragraph (b) of this section, the employer shall adjust the error by applying the excess payment as a credit against the contribution due on his next report filed after discovery of the error.

(d) Limitations on adjustments. No overpayment shall be adjusted under this section after the expiration of 3 years from the time the contribution report was required to be filed or 2 years from the time the contribution was paid, whichever of such periods expires the later, or if no contribution report was filed, 2 years from the time the contribution was paid. No underpayment shall be adjusted under this section after the receipt from the Board of formal notice and demand for payment based upon an assessment, but the entire amount assessed shall be paid to the Board pursuant to such notice and demand.

[Board Order 52-61, 17 FR 2305, Mar. 18, 1952, as amended by Board Order 60-114, 25 FR 7486, Aug. 9, 1960]

§ 345.13 Refunds.

(a) In general. Section 8(e) of the act provides that if more than the correct amount of the employer's contribution is paid with respect to any compensation and the overpayment cannot be adjusted, the amount of the overpayment shall be refunded in such manner and at such times (subject to the statute of limitations properly applicable thereto) as may be prescribed by regulations of the Board.

(b) When permitted. A claim for refund may be made only when the overpayments cannot be adjusted in accordance with the procedure set forth in § 345.12.

(c) Form of claim. A claim for refund shall be made on Form DC-3 in accordance with the instructions and regulations applicable thereto. The prescribed form may be obtained from the Board. There shall be set forth all grounds in detail and all facts alleged in support of the claim, including the amount and date of each payment to the Board of the contribution for which refund is claimed, the name and address of the employer who paid the contribution to the Board, and the period covered by the contribution report on which such contribution was reported.

(d) Claim by fiduciary. If any contribution is paid by or on behalf of an individual who thereafter dies and a claim for refund or credit is filed by a legal representative of the deceased, certified copies of the letters testamentary, letters of administration, or other similar evidence shall be annexed to the claim, to show the authority of the executor, administrator, or other fiduciary by whom the claim is filed. If an executor, administrator, guardian, trustee, receiver, or other fiduciary pays any contribution and thereafter a claim for refund or credit is filed by the same fiduciary, documentary evidence to establish the legal authority of the fiduciary need not accompany the claim, provided a statement is made in the claim showing that the contribution was paid by the fiduciary and that he is still acting. In such cases, if a refund or interest is to be paid, letters testamentary, letters of administration, or other evidence may be required to be submitted upon the receipt of a specific request therefor. If a claim is filed by a fiduciary or employer other than the one by whom the contribution was paid, the necessary documentary evidence shall accompany the claim. The claim form may be executed by an agent of the employer on whose behalf the claim is made, but in such case a power of attorney shall accompany the claim.

(e) Time limit. No refund shall be allowed after the expiration of 3 years from the time the contribution report was required to be filed or 2 years from the time the contribution was paid, whichever of such periods expires the later, or if no contribution report was filed, 2 years from the time the contribution was paid.

[Board Order 39-664, 4 FR 4372, Oct. 26, 1939, as amended by Board Order 51-254, 16 FR 8797, Aug. 30, 1951; Board Order 54-258, 19 FR 7265, Nov. 9, 1954; Board Order 60114, 25 FR 7486, Aug. 9, 1960]

§ 345.14 Assessment and collection of contributions or underpayments of contributions.

(a) If any employer's contribution is not paid to the Board when due or is not paid in full when due, the Board may, as the circumstances warrant, assess the contribution or the deficiency and interest and penalty, if any (whether or not the deficiency is adjustable as an underpayment).

(b) The amount of any such assessment will be collected, in accordance with the applicable provisions of law. If any employer liable to pay any contribution neglects or refuses to pay the same within ten days after notice and demand, the Board may collect such contribution with such interest and other additional amounts as are required by law, by distraint and sale in the manner provided by law. [Board Order 62-17, 27 FR 1416, Feb. 15, 1962]

§ 345.15 Jeopardy assessment.

(a) Whenever in the opinion of the Board it becomes necessary to protect the interests of the Government by effecting an immediate reporting and collection of an employer's contribution, the Board will assess the contribution whether or not the time otherwise prescribed by law for filing the contribution report and paying such contribution has expired, together with all penalties and interest thereon. Upon assessment, such contribution, penalty, and interest shall become immediately due and payable, and the Board shall thereupon issue immediately a notice and demand for payment of the contribution, penalty, and interest.

(b) The collection of the whole or any part of the amount of the jeopardy assessment may be stayed by filing with the Board a bond in an amount equal to the amount with respect to which the stay is desired, and with such sureties as the Board may deem necessary. Such bond shall be conditioned upon the payment of the amount (together with interest thereon) the collection of which is stayed, at the time at which, but for the jeopardy assessment, such amount would be due. In lieu of surety or sureties the employer may deposit with the Board bonds or notes of the United States, or bonds or notes fully guaranteed by the United States as to principal and interest, having a par value not less than the amount of the bond required to be furnished, together with an agreement authorizing the Board in case of default to collect or sell such bonds or notes so deposited. Upon refusal to pay, or failure to pay or give bond, the Board will immediately upon issuance of notice and demand for payment proceed to collect the contribution, penalty, and interest. If any employer liable to pay any contribution neglects or refuses to pay the same within ten days after notice and demand, the Board may collect such contribution with such interest and other additional amounts as are authorized by law, by distraint and sale in the manner provided by law.

[Board Order 62-17, 27 FR 1416, Feb. 15, 1962]

§ 345.16 Interest.

If the employer's contribution is not paid to the Board when due and is not adjusted under § 345.12, interest accrues at the rate of 1 percent per month, or fraction of a month. Interest on past due contributions from the due date thereof until the date paid will be assessed after payment of the contributions, and notice and demand made upon the employer for payment thereof, in any case in which payment of the contributions is made before assessment under § 345.14.

[Board Order 54-253, 19 FR 7266, Nov. 9, 1954]

§ 345.18 Liens.

If any employer required to pay a contribution neglects or refuses to pay the same after demand, the amounts (including any interest, penalties, additional amount, or additions to such contribution, together with any costs that may accrue in addition thereto) shall be a lien in favor of the United States upon all property and rights to property, whether real or personal, belonging to such employer.

[Board Order 39-664, 4 FR 4373. Oct. 26, 1939]

§ 345.19 Penalty for delinquent or false employers' contribution reports.

(a) Delinquent reports. (1) Unless the employer required to file a contribution report establishes to the satisfaction of the Board that a reasonable cause exists for the delinquency, the failure to file such contribution report on or before the due date shall cause a penalty to accrue of 5 percent of the amount of such contribution if the failure is for not more than one (1) month, with an additional 5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 25 percent in the aggregate.

(2) Every employer filing a contribution report after the due date shall securely attach to the report a signed statement explaining the reason for the delinquency. This declaration shall become a part of the contribution report and shall be subject to the same penalties for false or fraudulent statements as are described on the face of Form DC-1. Upon receipt of this declaration the Board shall determine whether a penalty for late filing shall be assessed against the employer.

(b) False reports. If a fraudulent employer's contribution report is made, the penalty is 50 percent of the underpayment.

(c) Penalty on net amount. For the purpose of paragraph (a) of this section the amount of contribution required to be shown on Form DC-1 shall be reduced by the amount of any part of the contribution which is paid on or before the date prescribed for the payment of the contribution and by the amount of any credit against

(a) Every employer subject to contributions for any calendar quarter shall, with respect to each such quarter, keep such permanent records as are necessary to establish the total amount of compensation paid to his employees, during each such quarter for services performed after June 30, 1939. The record should be in such form as to contain the information required to be shown on the quarterly contribution report. All records required by the regulations in this part shall be kept at a safe and convenient location accessible to inspection by the Board or any of its officers or employees thereto designated. Such records shall be at all times open for inspection by such officers or employees.

(b) Records required by the regulations in this part shall be maintained

§ 370.14 Posting notices to employees.

Regional directors of the Board shall arrange for the posting by employers of such notices to their employees as the Board may provide in order to inform such employees of their rights under the railroad retirement acts and the Railroad Unemployment Insurance Act. Such notices shall be so posted in such numbers and in such places as may be necessary to insure that they will be seen by the greatest number of employees.

(Sec. 12, 52 Stat. 1107, as amended (45 U.S.C. 362); Interprets or applies sec. 5, 52 Stat. 1099, as amended; 45 U.S.C. 355) [Board Order 39-737, 4 FR 4794, Dec. 8, 1939]

§ 370.15 Failure of employer to report base year compensation.

So long as an employer fails, for any reason, to report to the Board the compensation payable by such employer during the base year to an employee who is claiming benefits under the Railroad Unemployment Insurance Act, the amount of wages earned by such employee from such employer in the base year as shown on any statement of either of the following types shall be deemed to be the base year compensation of such employee from such employer for the purpose of paying benefits under the Railroad Unemployment Insurance Act, subject to adjustment of such benefits if the base year compensation as subsequently reported by the employer to the Board is different from the amount of wages shown on such statement:

(a) Statements, under oath or otherwise, signed by an official, or a duly authorized employee, of a Federal or State governmental agency, based on reports made to the agency by the employer.

(b) Statements, under oath or otherwise, signed by an officer, or a duly au

thorized employee, of the employer, or, if not so signed, on forms prepared by the employer.

(Sec. 12, 52 Stat. 1107, as amended (45 U.S.C. 362))

[13 FR 7738, Dec. 15, 1948]