§ 2657 (e)

EXCISE TAX PROVISIONS

phorus matches and all raw material for the production of white phosphorus matches found in the factory and on the factory premises, or owned by him.

(f) OFFENSES NOT SPECIFICALLY COVERED.-If any manufacturer of white phosphorus matches, or any importer or exporter of matches, shall omit, neglect, or refuse to do or cause to be done any of the things required by law in carrying on or conducting his business, or shall do anything by this chapter prohibited, if there be no specific penalty or punishment imposed by any other provision of this chapter for the neglecting, omitting, or refusing to do, or for the doing or causing to be done, the thing required or prohibited, all the white phosphorus matches owned by him or in which he has any interest as owner shall be forfeited to the United States.

SEC. 2658. RECOVERY OF PENALTIES AND FORFEITURES.

All fines, penalties, and forfeitures imposed by this chapter may be recovered in any court of competent jurisdiction.

SEC. 2659. OTHER LAWS APPLICABLE.

(a) [STAMP PROVISIONS.-] All the provisions and penalties of law governing the engraving, issuing, sale, affixing, cancellation, accountability, effacement, destruction, and forgery of stamps provided for internal revenue shall apply to stamps provided for by this chapter.

(b) [OTHER PROVISIONS.-] All provisions and penalties of law relating to internal revenue, so far as applicable, shall extend to and include and apply to the taxes imposed by this chapter and to the articles upon which and to the persons upon whom they are imposed. SEC. 2660. REGULATIONS.

For authority of the Commissioner, with the approval of the Secretary, to make all needful regulations for the carrying into effect of this chapter, see section 3791 (a) (1).

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CHAPTER 25-FIREARMS

SUBCHAPTER A-PISTOLS AND REVOLVERS

SEC. 2700. TAX.

(a) RATE.-There shall be levied, assessed, collected, and paid upon pistols and revolvers sold or leased by the manufacturer, producer, or importer, a tax equivalent to 11 per centum of the price for which so sold or leased.

(b) EXEMPTIONS.

(1) SALES FOR USE OF STATES, ETC.-Pistols and revolvers sold for the use of any State, Territory of the United States, or political subdivision thereof, or the District of Columbia, shall be exempt from the tax imposed by subsection (a).

(2) TAXABLE UNDER SUBCHAPTER B.-The tax imposed by subsection (a) shall not apply to any firearm on which the tax provided by section 2720 of this chapter has been paid.

(3) CROSS REFERENCE.—

For exemption from tax in case of exportation, see section 2705. (c) COMPUTATION IN SPECIAL CASES.

For computation of tax in case of retail sales by wholesalers and in case of colorable sales, see section 2704.

SEC. 2701. RETURNS.

Every person liable for the tax imposed by section 2700 (a) shall make monthly returns under oath in duplicate to the collector for the district in which is located the principal place of business. Such returns shall contain such information and be made at such times and in such manner as the Commissioner, with the approval of the Secretary, may by regulations prescribe.

SEC. 2702. PAYMENT OF TAX.

(a) DATE OF PAYMENT.-The tax shall, without assessment by the Commissioner or notice from the collector, be due and payable to the collector for the district in which is located the principal place of business, at the time fixed in section 2701 for filing the return.

(b) DISCRETIONARY METHOD OF COLLECTION.

For discretionary method of collection, see section 2708.

SEC. 2703. ERRONEOUS PAYMENTS.

(a) IN GENERAL.-In the case of any overpayment or overcollection of the tax imposed by section 2700, the person making such overpayment or overcollection may take credit therefor against taxes due upon any monthly return, and shall make refund of any excessive amount collected by him upon proper application by the person entitled thereto..

(b) EXPORTS.

For refund of tax on pistols and revolvers exported, see section 2705.

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SEC. 2704. COMPUTATION OF TAX IN SPECIAL CASES.

(a) RETAIL SALES BY WHOLESALERS.-If any manufacturer, producer, or importer of pistols or revolvers customarily sells such articles both at wholesale and at retail, the tax in the case of any articles sold by him at retail shall be computed on the price for which like articles are sold by him at wholesale.

(b) COLORABLE SALES AND LEASES.

(1) TO AFFILIATED CORPORATIONS.-If any corporation which manufactures, produces, or imports pistols or revolvers sells or leases such articles to a corporation affiliated with it within the meaning of this paragraph, at less than the fair market price obtainable therefor, the tax thereon shall be computed on the basis of the price at which such articles are sold or leased by the corporation with which it is affiliated. For the purpose of this paragraph, two or more domestic corporations shall be deemed to be affiliated (1) if one corporation owns at least 95 per centum of the stock of the other or others, or (2) if at least 95 per centum of the stock of two or more corporations is owned by the same interests. As used in this paragraph, the term "stock" does not include nonvoting stock which is limited and preferred as to dividends.

(2) TO OTHERS.-If any person who manufactures, produces, or imports pistols or revolvers sells or leases such articles, whether through any agreement, arrangement, or understanding, or otherwise, at less than the fair market price obtainable therefor, either (1) in such manner as directly or indirectly to benefit such person or any person directly or indirectly interested in the business of such person, or (2) with intent to cause such benefit, the amount for which such articles are sold or leased shall be taken to be the amount which would have been received from the sale or lease of such articles if sold or leased at the fair market price.

SEC. 2705. EXPORTATION.

Under such rules and regulations as the Commissioner with the approval of the Secretary may prescribe, the tax imposed under section 2700 (a) shall not apply in respect of articles sold or leased for export or for shipment to a possession of the United States and in due course so exported or shipped. Under such rules and regulations the amount of any internal revenue tax erroneously or illegally collected in respect of such articles so exported or shipped may be refunded to the exporter or shipper of the articles, instead of to the manufacturer, if the manufacturer waives any claim for the amount so to be refunded.

SEC. 2706. ADDITION TO TAX IN CASE OF NONPAYMENT.

If the tax is not paid when due, there shall be added as part of the tax interest at the rate of 6 per centum per annum from the time when the tax became due until paid.

SEC. 2707. PENALTIES.

(a) [FAILURE TO PAY TAX, ETC.-CIVIL PENALTY.-] Any person who willfully fails to pay, collect, or truthfully account for and pay over the tax imposed by section 2700 (a), or willfully attempts in

any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty of the amount of the tax evaded, or not paid, collected, or accounted for and paid over, to be assessed and collected in the same manner as taxes are assessed and collected. No penalty shall be assessed under this subsection for any offense for which a penalty may be assessed under authority of section 3612.

(b) [FAILURE TO PAY TAX, ETC.-CRIMINAL PENALTY.—] Any person required under this subchapter to pay any tax, or required by law or regulations made under authority thereof to make a return, keep any records, or supply any information, for the purposes of the computation, assessment, or collection of any tax imposed by this subchapter, who willfully fails to pay such tax, make such returns, keep such records, or supply such information, at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof, be fined not more than $10,000, or imprisoned for not more than one year, or both, together with the costs of prosecution.

(c) [FAILURE TO COLLECT AND PAY OVER TAX, ETC.-] Any person required under this subchapter to collect, account for, and pay over any tax imposed by this subchapter, who willfully fails to collect or truthfully account for and pay over such tax, and any person who willfully attempts in any manner to evade or defeat any tax imposed by this subchapter or the payment thereof, shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, be fined not more than $10,000, or imprisoned for not more than five years, or both, together with the costs of prosecution.

(d) ["PERSON" DEFINED.] The term "person", as used in this section, includes an officer or employee of a corporation, or a member or employee of a partnership, who as such officer, employee, or member is under a duty to perform the act in respect of which the violation

occurs.

SEC. 2708. DISCRETIONARY METHOD ALLOWED COMMISSIONER FOR COLLECTING TAX.

Whether or not the method of collecting the tax imposed by section 2700 (a) is specifically provided in this subchapter, such tax may, under regulations prescribed by the Commissioner, with the approval of the Secretary, be collected by stamp, coupon, serial-numbered ticket, or such other reasonable device or method as may be necessary or helpful in securing a complete and prompt collection of the tax. All administrative and penalty provisions of subchapters A, B, and C of chapter 11, insofar as applicable, shall apply to the collection of any tax which the Commissioner determines or prescribes shall be collected in such manner.

SEC. 2709. RECORDS, STATEMENTS, AND RETURNS.

Every person liable to any tax imposed by this subchapter, or for the collection thereof, shall keep such records, render under oath such statements, make such returns, and comply with such rules and regulations, as the Commissioner, with the approval of the Secretary, may from time to time prescribe.

SEC. 2710. RULES AND REGULATIONS.

For authority of the Commissioner, with the approval of the Secretary, to prescribe and publish all needful rules and regulations for the enforcement of this chapter, see section 3791 (a) (1).

SEC. 2711. OTHER LAWS APPLICABLE.

All administrative, special, or stamp provisions of law, including the law relating to the assessment of taxes, so far as applicable, shall be extended to and made a part of this subchapter.

SEC. 2713. CROSS REFERENCES.

For general provisions relating to stamps, information and returns, assessment, collection, and refund, see chapters 28 [sections 3300 and following] and 34 to 37, inclusive [sections 3600 and following].

SUBCHAPTER B-MACHINE GUNS AND SHORT-BARRELLED FIREARMS

SEC. 2720. TAX.

(a) RATE.-There shall be levied, collected, and paid upon firearms transferred in the continental United States a tax at the rate of $200 for each firearm: Provided, That the transfer tax on any gun with two attached barrels, 12 inches or more in length, from which only a single discharge can be made from either barrel without manual reloading, or any gun designed to be held in one hand when fired and having a barrel 12 inches or more in length from which only a single discharge can be made without manual reloading, shall be at the rate of $1. The tax imposed by this section shall be in addition to any import duty imposed on such firearm.

(b) BY WHOM PAID.-Such tax shall be paid by the transferor. (c) How PAID.

(1) STAMPS.-Payment of the tax herein provided shall be represented by appropriate stamps to be provided by the Commissioner, with the approval of the Secretary.

(2) CROSS REFERENCE.

For assessment in case of omitted taxes payable by stamp, see sections 3311 and 3640.

(d) REGISTRATION AND SPECIAL TAX.

For requirements as to registration and special tax, see part VIII of subchapter A of chapter 27 [sections 3260 and following].

SEC. 2721. EXEMPTIONS.

(a) TRANSFERS EXEMPT.-This subchapter and part VIII of subchapter A of chapter 27 shall not apply to the transfer of firearms (1) to the United States Government, any State, Territory, or possession of the United States, or to any political subdivision thereof, or to the District of Columbia; (2) to any peace officer or any Federal officer designated by regulations of the Commissioner; (3) to the transfer of any firearm which is unserviceable and which is transferred as a curiosity or ornament.

(b) NOTICE OF EXEMPTION.-If the transfer of a firearm is exempted as provided in subsection (a), the person transferring such firearm shall notify the Commissioner of the name and address of the applicant [referred to in section 2723 (a)], the number or other mark identifying such firearm, and the date of its transfer, and shall