over which the United States Board of Tax Appeals has jurisdiction. These include income, estate, and gift taxes. Subtitle B contains the miscellaneous taxes. Subtitle C contains the temporary taxes. Subtitle D contains the general administrative provisions. Subtitle F contains provisions relating to the Joint Committee on Internal Revenue Taxation. Subtitle G contains provisions relating to the Joint Committee on Tax Evasion and Avoidance. The purpose of this arrangement is to make the subtitles as far as possible complete in themselves. For example, those interested solely in provisions relating to income, estate, or gift taxes need concern themselves only with subtitles A and D and thus may avoid confusing themselves with the provisions relating to tobacco, liquor, and other miscellaneous taxes, which are included in subtitle B. In subtitle D, all general administrative provisions have been collected. The chapter arrangement is based both upon the importance of the tax from a revenue standpoint and the number of persons affected. The plan for the arrangement of provisions in the income tax chapter follows the Revenue Act of 1936 and consists of the collection of the provisions under two classifications, general provisions and supplemental provisions. The general provisions are those which apply to the ordinary transactions of the ordinary classes of taxpayers. In the main, the supplemental provisions are those which apply to the extraordinary classes of taxpayers or to the extraordinary transactions of the ordinary classes of taxpayers. Special administrative provisions are included in the supplemental provisions. This same scheme is applied to the chapters on the estate and gift taxes. The chapter on the United States Board of Tax Appeals is included in subtitle A for the reason that the jurisdiction of the Board is confined to the taxes in that subtitle. Subtitle B contains the miscellaneous taxes, such as the employment taxes arising under the Social Security Act and the Railroad Retirement Act, the taxes on tobacco and liquor, admissions and dues, issues and transfers of stocks, issues of bonds, etc. The arrangement of these chapters gives prominence to matters of chief interest to the taxpayer; that is, liability to tax, rate, payment, and other obligations and duties imposed upon the taxpayer. The special administrative provisions follow and the penalty and forfeiture provisions are grouped together so as to be readily located. In subtitle C, the temporary taxes are included. Among those are the manufacturers' excise taxes, the tax on telegraph and telephone messages, and the tax on electrical energy, which by express provision of the law expire within the next few years. Subtitle D contains the administrative provisions of a general character. The arrangement of this subtitle follows the usual course of procedure in tax administration-that is, information, returns, assessment, collection, and refund. Subtitle E contains the provisions relating to personnel. The provisions relating to appointment, salary, powers, and duties of internal-revenue officials and employees are logically and systematically arranged. The code concludes with subtitles F and G, which contain the law relating to the Joint Committee on Internal Revenue Taxation and the Joint Committee on Tax Evasion and Avoidance. The appendix contains the more important statutes which do not relate exclusively to internal revenue, but which are applicable in the administration of the internal-revenue laws. It also contains a number of temporary provisions relating exclusively to internal revenue, as well as to certain treaties relating to taxation. In addition there are five tables. Table A shows the derivation of each section of the code. Table B is the converse of table A, showing where the statutes are incorporated into the code. Table C shows the derivation of the Revised Statutes relating to internal revenue. Table D cites the internal-revenue laws expressly repealed, together with the repealing statutes. Table E cites the express amendments to the Revised Statutes and Statutes at Large. PROVISIONS OF THE CONSTITUTION RELATING TO TAXATION Art. 1, sec. 2, cl. 3: "Representatives and direct taxes shall be apportioned among the several States which may be included within this Union, according to their respective numbers, which shall be determined by adding to the whole number of free persons, including those bound to service for a term of years, and excluding Indians not taxed, three-fifths of all other persons." 1 Art. 1, sec. 8, cl. 1: "The Congress shall have power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts, and excises shall be uniform throughout the United States." Art. 1, sec. 9, cl. 4: "No capitation or other direct tax shall be laid, unless in proportion to the census or enumeration herein before directed to be taken." Art. 1, sec. 9, cl. 5: "No tax or duty shall be laid on articles exported from any State." Art. 1, sec. 10, cl. 2: "No State shall, without the consent of the Congress, lay any imposts or duties on imports or exports, except what may be absolutely necessary for executing its inspection laws; and the net produce of all duties and imposts, laid by any State on imports or exports, shall be for the use of the Treasury of the United States; and all such laws shall be subject to the revision and control of the Congress." Am. art. XVI: "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration." The part of this clause relating to the mode of apportionment of Representatives among the several States was amended by the fourteenth amendment, section 2, and as to taxes on incomes, by the sixteenth amendment, which is quoted above. 26966-38-B XVII |