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(2) Aid or assistance.—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 return, affidavit, claim, or other document, which is fraudulent or is false as to any material matter, 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; or *******

shall be guilty of a felony and, upon conviction thereof, shall be fined not more than $5,000, or imprisoned not more than 3 years; or both, together with the costs of prosecution.

SEC. 7207. FRAUDULENT RETURNS, STATEMENTS, OR OTHER DOCUMENTS.

Any person who willfully delivers or discloses to the Secretary or his delegate any list, return, account, statement, or other document, known by him to be fraudulent or to be false as to any material matter, shall be fined not more than $1,000, or imprisoned not more than 1 year, or both.

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CHAPTER 78—DISCOVERY OF LIABILITY AND
ENFORCEMENT OF TITLE

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Sec. 7651. Administration and collection of taxes in possessions 395

Sec. 7655. Cross references 396

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SEC. 7651. ADMINISTRATION AND COLLECTION OF TAXES IN POSSESSIONS.

Except as otherwise provided in this subchapter and in sections 4705 (b), 4735, and 4762 (relating to taxes on narcotic drugs and marihuana), and except as otherwise provided in section 28 (a) of the Revised Organic Act of the Virgin Islands and section 30 or the Organic Act of Guam (relating to the covering of the proceeds of certain taxes into the treasuries of the Virgin Islands and Guam, respectively)—

(1) Applicability Op Administrative Provisions.—All provisions of the laws of the United States applicable to the assessment and collection of any tax imposed by this title or of any other liability arising under this title (including penalties) shall, in respect of such tax or liability, extend to and be applicable in any possession of the United States in the same manner and to the same extent as if such possession were a State, and as if the term "United States" when used in a geographical sense included such possession.

(2) Tax Imposed In Possession.—In the case of any tax which is imposed by this title in any possession of the United States—

(A) Internal Revenue Collections.—Such tax shall be collected under the direction of the Secretary or his delegate, and shall be paid into the Treasury of the United States as internal revenue collections; and

65368—-01——26

(B) Applicable Laws.—All provisions of the laws of the United States applicable to the administration, collection, and enforcement of such tax (including penalties) shall, in respect of such tax, extend to and be applicable in such possession of the United States in the same manner and to the same extent as if such possession were a State, and as if the term "United States" when used in a geographical sense included such possession.

(3) Otheh Laws Relating To Possessions.—This section shall apply notwithstanding any other provision of law relating to any possession of the United States.

(4) Canal Zone.—For purposes of this section, the term "possession of the United States" includes the Canal Zone.

(5) Virgin Islands.

(A) For purposes of this section, the reference in section 28 (a) of the Revised Organic Act of the Virgin Islands to "any tax specified in section 3811 of the Internal Revenue Code" shall be deemed to refer to any tax imposed by chapter 2 or by chapter 21.

(B) For purposes of this title, section 28 (a) of the Revised Organic Act of the Virgin Islands shall be effective as if such section had been enacted subsequent to the enactment of this title.

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SEC. 7655. CROSS REFERENCES.

(a) Imposition or Tax In Possessions.

For provisions imposing tax in possessions, see—

(1) Chapter 2, relating to self-employment tax;

(2) Chapter 21, relating to the tax under the Federal Insurance Contributions Act;

(3) Parts I and III of subchapter A of chapter 39, relating to taxes in respect of narcotic drugs;

(4) Parts II and III of subchapter A of chapter 39, relating to taxes in respect of marihuana;

(5) Subchapter A of chapter 37, relating to tax on sugar.

(b) Other Provisions.

For other provisions relating to possessions of the United States, see—

(1) Section 933, relating to income tax on residents of Puerto Rico;

(2) Section 6418 (b), relating to exportation of sugar to Puerto Rico.

CHAPTER 79—DEFINITIONS 64

Page Sec. 7701. Definitions 396

SEC. 7701. DEFINITIONS.

(a) When used in this title, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof—

(1) Person.—The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.

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(3) Corporation.—The term "corporation" includes associations, joint-stock companies, and insurance companies.

""This chapter has been compiled by the United States Department of Labor.

(4) Domestic.—The term "domestic" when applied to a corporation or partnership means created or organized in the United States or under the law of the United States or of any State or Territory.

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(7) Stock.—The term "stock" includes shares in an association, joint-stock company, or insurance company.

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(9) United States.—The term "United States" when used in a geographical sense includes only the States" and the District of Colunibia.

(10) State.—The term "State" shall be construed to include the District of Columbia," where such construction is necessary to carry out the provisions of this title.

(11) Secretabt.—The term "Secretary" means the Secretary of the Treasury.

CHAPTER 80—GENERAL RULES

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Sec. 7805. Rules and regulations 397

Sec. 7851. Applicability of revenue laws 397

Sec. 7852. Other applicable rules 398

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SEC. 7805. RULES AND REGULATIONS.

(a) Authorization.—Except where such authority is expressly given by this title to any person other than an officer or employee of the Treasury Department, the Secretary or his delegate shall prescribe all needful rules and regulations for the enforcement of this title, including all rules and regulations as may be necessary by reason of any alteration of law in relation to internal revenue.

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(c) Preparation And Distribution Of Regulations, Forms, Stamps, And Other Matters.—The Secretary or his delegate shall prepare and distribute all the instructions, regulations, directions, forms, blanks, stamps, and other matters pertaining to the assessment and collection of internal revenue.87

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SEC 7851. APPLICABILITY OF REVENUE LAWS. *

(a) General Rules.—Except as otherwise provided in any section of this title—

(1) Subtitle A.—

(A) Chapters 1,2,4, and 6 of this title shall apply only with respect to taxable years beginning after December 31, 1953, and ending after the date of enactment of this title, and with respect to such taxable years, diapers 1 (except sections 143

•P. L. 86-624, sec. 18 (1) struck out ", the Territory of Hawaii," effective as of August 21, 1959.

P. L. 86-70, sec. 22 (g) substituted "the Territory of Hawaii" for "the Territories of Alaska and Hawaii" effective as of January 3, 1959.

"P. L. 86-624, sec. 18 (j) struck out "the Territory of Hawaii and" effective as of August 21, 1959.

P. L. 86-70, sec. 22 (h) substituted "Territory of Hawaii" for "Territories" effective as of January 3, 1959.

"This subsection has been compiled by the United States Department of Labor.

and 144) and 2, and section 3801, of the Internal Revenue Code of 1939 are hereby repealed.

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(C) Any provision of subtitle A of this title the applicability of which is stated in terms of a specific date (occurring after December 31,1953), or in terms of taxable years ending after a specific date (occurring after December 31, 1953), shall apply to taxable years ending after such specific date. Each such provision shall, in the case of a taxable year subject to the Internal Revenue Code of 1939, be deemed to be included in the Internal Revenue Code of 1939, but shall be applicable only to taxable years ending after such specific date. The provisions of the Internal Revenue Code of 1939 superseded by provisions of subtitle A of this title the applicability of which is stated in terms of a specific date (occurring after December 31,1953) shall be deemed to be included in subtitle A of this title, but shall be applicable only to the period prior to the taking effect of the corresponding provision of subtitle A.

(3) Subtitle C.—^Subtitle C of this title shall apply only with respect to remuneration paid after December 31,1954, except that chapter 22 of such subtitle shall apply only with respect to remuneration paid after December 31,1954, which is for services performed after such date. Chapter 9 of the Internal Revenue Code of 1939 is hereby repealed with respect to remuneration paid after December 31,1954, except that subchapter B of such chapter (and subchapter E of such chapter to the extent it relates to subchapter B) shall remain in force and effect with respect to remuneration paid after December 31,1954, for services performed on or heforn such date. *******

(e) Reference To Other Provisions.—For the purpose of applying the Internal Revenue Code of 1939 or the Internal Revenue Code of 1954 to any period, any reference in either such code to another

grevision of the Internal Revenue Code of 1939 or the Internal evenue Code of 1954 which is not then applicable to such period shall be deemed a reference to the corresponding provision of the other code which is tKen applicable to such period.

SEC. 7852. OTHER APPLICABLE RULES.

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(b) Reference In Other Laws To Internal Revenue Code Of 1939.—Any reference in any other law of the United States or in any Executive order to any provision of the Internal Revenue Code of 1939 shall, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, be deemed also to refer to the corresponding provision of this title.

EXCERPTS FROM INTERNAL REVENUE CODE OF 1939 SEC. 1401. DEDUCTION OF TAX FROM WAGES.

(d) Special Refunds.

(3) Wages Received Aster 1000.—If by reason of an employee receiving wages from more than one employer during any calendar year alter the calendar year 1950, the wages received by him during such year exceed $3,600, the employee shall be entitled to a refund of any amount of tax, with respect to such wages, imposed by section 1400 and deducted from the employee's wages (wnether or not paid to the collector), which exceeds the tax with respect to the first $3,600 of such wages received. Refund under this section may be made in accordance with the provisions of law applicable in the case of erroneous or illegal collection of the tax; except that no such refund shall be made unless (A) the employee makes a claim, establishing his right thereto, after the calendar year in which the wages were received with respect to which refund of tax is claimed, and (B) such claim is made within two years after the calendar year in which such wages were received or, in the case of any agreement (or modification thereof) pursuant to section 218 of the Social Security Act which is effective as of a date more than two years prior to the date such agreement (or modification) was agreed to, within two years after the calendar year in which such agreement (or modification) was agreed to by the State and the Secretary of Health, Education, and Welfare. No interest shall be allowed or paid •with respect to any such refund.68 *******

SEC. 1410. RATE OF TAX.

In addition to other taxes, every employer shall pay an excise tax, with respect to having individuals in his employ, equal to the following percentages of the wages (as defined in section 1426 (a)) paid by him after December 31, 1936, with respect to employment (as defined in section 1426 (b)) after such date:

(1) With respect to wages paid during the calendar years 1939 to 1949, both inclusive, the rate shall be 1 per centum.

(2) With respect to wages paid during the calendar years 1950 to 1953, both inclusive, the rate shall be iy2 per centum.

(3) With respect to wages paid during the calendar j^ears 1954 to 1959, both inclusive, the rate shall be 2 per centum.

(4) With respect to wages paid during the calendar years 1960 to 1964, both inclusive, the rate shall be 2*4 per centum.

(5) With respect to wages paid during the calendar years 1965 to 1969, both inclusive, the rate shall be 3 per centum.

(6) With respect to wages paid after December 31, 1969, the rate shall be 314 per centum.

08 The concluding portion of the second sentence, after the word "received" was added by sec. 202 (a) (2) of the 1954 Amendments, effective, pursuant to susbectlon (d) of such section as of the date of enactment of the original sec. 1401 (d) (3) by the 1050 Amendments.

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