Title XIII (new section).-All tax assessments to be made within five years. Under the Revenue Act of 1918, section 3182 of the Revised Statutes covers capital stock tax assessments understated or omitted from any list and provides that they must be made within 15 months from the date of delivery to the collector of the list upon which the assessments of such tax are made or from which they are omitted. Subdivision (d) of section 250 of the Revenue Act of 1918 allows five years for assessment in the case of income and excess profits taxes, and it has been suggested that the same period of time should extend to the assessment of capital stock taxes and all other taxes not payable by stamp. It has been suggested that, due to the volume of work and the limited force of the Internal Revenue Bureau in the past, the capital stock tax audit has not been completed each year within the 15-month period, and that in order to avoid legal proceedings it has been necessary to request taxpayers to sign waivers of the statutory limitation and that the suggested extension of time would eliminate the necessity for such an unsatisfactory procedure. It has been suggested that this change could be accomplished by an amendment in substantially the following form; Amend the Revenue Act of 1918 by adding a new section as follows: SEC. 1337. That section 3182 of the Revised Statutes is hereby amended to read as follows: "SEC. 3182. The Commissioner of Internal Revenue is hereby authorized and required to make the inquiries, determinations, and assessments of all taxes and penalties imposed by this Title, or accruing under any former internal-revenue act, where such taxes had not been duly paid by stamp at the time and in the manner provided by law, and shall certify a list of such assessments when made to the proper collectors respectively, who shall proceed to collect and account for the taxes and penalties so certified. Whenever it is ascertained that any list which has been or shall be delivered to any collector, is imperfect or incomplete in consequence of the omission of the name of any person liable to tax, or in consequence of any omission, or understatement, or undervaluation, or false or fraudulent statement contained in any return made by any person liable to tax, the Commissioner of Internal Revenue may, at any time within 15 months five years from the time of the delivery of the list to the collector as aforesaid, enter on any monthly or special list the name of such person so omitted, together with the amount of tax for which he may have been or shall become liable, and also the name of any such person in respect to whose return, as aforesaid, there has been or shall be any omission, undervaluation, understatement, or false or fraudulent statement, together with the amount for which such person may be liable, above the amount for which he may have been or shall be assessed upon any return made as aforesaid; and he shall certify and return such list to the collector as required by law. And all provisions of law for the ascertainment of liability to any tax, or the assessment or collection thereof, shall be held to apply, so far as may be necessary, to the proceedings herein authorized and directed." Title XIII (new section). Amendments to Revenue Act of 1918 to be effective from date of approval of the new act. It has been suggested that any amendment to the Revenue Act of 1918 should be effective only from the date of the approval of the act amending the same, It has been suggested that this change could be accomplished by an amendment in substantially the following form: Amend the Revenue Act of 1918 by adding a new section as follows: SEC. 1338. That all amendments to the revenue act of 1918 made by this act shall be effective only from the date of approval of this act. [Part II containing a digest of the decisions of the United States Courts construing the internal-revenue laws from 1909 to 1918, both inclusive, is printed as a separate document.] CONTENTS. The text of such sections of the acts as have been construed by the courts are included. (Completed to Nov. 3, 1919.) The headnotes from the Federal Reporter, copyrighted by the West Publishing Co., and those from the official United States Supreme Court reports, copyrighted by the Banks Law Publishing Co., have been used in some cases, permission for such use having been granted by the respective publishers. 1. ACT OF AUGUST 5, 1909 (corporation excise tax). 2. ACT OF OCTOBER 3, 1913 (income tax)...... 3. ACT OF JANUARY 17, 1914 (opium manufacture)......... 4. ACT OF OCTOBER 22, 1914 (occupational and stamp taxes)..... 5. ACT OF DECEMBER 17, 1914 (opium-"Harrison Anti-Narcotic Act.")... 6. ACT OF SEPTEMBER 8, 1916 (income, estate, munition manufacturer's, and capital stock taxes). 7. ACT OF OCTOBER 3, 1917 (stamp taxes and income tax).. 8. ACT OF FEBRUARY 24, 1919 (income tax).. 9. INDEX Page. 9 53 $2 84 100 115 124 126 128 CASES DIGESTED. A. Abrast Realty Co. v. Maxwell (206 Fed. 333).. Pagr. 15, 51 Altheimer & Rawlings (Inc.) v. Allen, collector (248 Fed. 688; 248 U. S. 578).. 31, 40 American Chicle Co. v. United States (unreported). . . . . American Real Estate Co. v. Marshall (Ann. Rep. of Comm. Int. Rev. 1915, Anderson v. Morris & Essex R. Co. (216 Fed. 83) 97 31 84, 87 9, 10, 30, 31 10, 12, 23 23, 32, 52 Associated Pipe Line Co. v. United States (258 Fed. 800) .. Bellefontaine Bldg. & Loan Co. v. McMaken (216 Fed. 526).... Biwabik Mining Co., U. S. v. Blalock v. Georgia Ry. & Elec. Co. (228 Fed. 296; 246 Fed. 387). Boston Terminal Co. v. Gill (246 Fed. 664).......... Boston & P. R. Corp'n et al. v. Gill (257 Fed. 221). Brushaber v. Union Pacific Ry. Co. (240 U. S. 1). Bryant & May (Ltd.) v. Scott (226 Fed. 875). Butterick Co. v. United States (240 Fed. 539). 30, 39 9, 12, 22 22, 30, 31 51 56, 57 53, 54, 56, 64, 67, 76, 80 25 62 11, 48, 70, 71, 81 3 |