sentatives [Conference] Report No. 1957, C.B. 1951-1, 995. These reports indicate that it was the intent of Congress to relieve farmers from the burden of the excise tax on gasoline used on their farms for farming purposes by providing for an annual payment directly to the owner, tenant, or operator of a farm. Accordingly, the words "any person other than" are construed to mean custom operators or other independent contractors performing services on a farm for the owner, tenant, or operator of the farm in connection with cultivating the soil or in connection with raising or harvesting agricultural or horticultural commodities. Under such circumstances, the owner, tenant, or operator of the farm would include in his claim for payment the gasoline used on his farm by the custom operator. Persons other than the owner, tenant, or operator of the farm would not be entitled to any payment, even though they might indicate that the benefits would be passed on to the owner, tenant, or operator of the farm.

In the instant case, the milling company purchased from the farmers the alfalfa crops which were growing in the fields. In the subsequent harvesting of its own crops, the milling company could not be considered as a custom operator performing services for the owner, tenant, or operator of the farm. Therefore, it is held that, under these circumstances, no payment under the provisions of section 6420 (a) of the Code is allowable either to the milling company or to the farmers. However, see section 6421 (a) of the Code, which provides that the ultimate purchaser of gasoline is entitled to a payment equal to one cent for each gallon of gasoline which is used otherwise than as fuel in a highway vehicle which (at the time of such use) is registered, or is required to be registered, for highway use under the law of any State or foreign country.

SECTION 6421.-GASOLINE USED FOR CERTAIN NONHIGHWAY PURPOSES OR BY LOCAL TRANSIT SYSTEMS Rev. Rul. 59-90

Where a timely filed Form 2240, Claim For Refund Of Federal Tax On Gasoline Used On A Farm, has been disallowed, such Form 2240 may be regarded and processed as a claim for a payment equal to one cent for each gallon of gasoline used for certain nonhighway purposes, provided the claimant is entitled to such payment, under the provisions of section 6421 (a) of the Internal Revenue Code of 1954.

Advice has been requested whether a timely filed Form 2240, Claim for Refund of Federal Tax on Gasoline Used on a Farm, may be regarded and processed as a claim for the payment provided by section 6421 (a) of the Internal Revenue Code of 1954, with respect to gasoline used for certain nonhighway purposes, under the circumstances described below.

A company filed a claim under the provisions of section 6420 (a) of the Code, on Form 2240 for a payment equivalent to the Federal excise tax on the gasoline used in a manner described by the claim. The claim was disallowed because the gasoline was not used on a farm for farming purposes within the meaning of that section. However, it was determined that the company was entitled to a payment, under

the provisions of section 6421 (a) of the Code, equal to one cent for each gallon of gasoline used in the manner described.

Under the provisions of section 6421 (a) of the Code, if gasoline is used otherwise than as a fuel in a highway vehicle (1) which, at the time of such use, is registered, or is required to be registered, for highway use under the laws of any State or foreign country, or (2) which, in the case of a highway vehicle owned by the United States, is used on the highway, the Secretary of the Treasury or his delegate shall pay (without interest) to the ultimate purchaser of such gasoline an amount equal to one cent for each gallon of gasoline so used. Section 6421 (c) of the Code provides that not more than one claim may be filed under subsection (a) by any person with respect to gasoline used during the one-year period ending on June 30th of any year. Also, no claim shall be allowed under this section with respect to any one-year period unless filed on or before September 30th of the year in which such one-year period ends. (Under the provisions of section 6420 (b) of the Code, relating to payments provided by section 6420 (a), the time for filing a claim and the period covered are the same as in section 6421 (c) of the Code.)

Ordinarily, the claim for the one-cent payment for each gallon of gasoline used for nonhighway purposes is filed on Form 843, Claim. However, since the Form 2240 was timely filed and the claimant is otherwise entitled to the payment provided by section 6421 (a) of the Code, it is held that such Form 2240 may be regarded and processed as a claim under the provisions of that section of the Code.

PART II

RULINGS AND DECISIONS UNDER THE INTERNAL REVENUE CODE OF 1939, THE FEDERAL FIREARMS ACT, AND OTHER PUBLIC LAWS

SUBPART A.-RULINGS AND DECISIONS UNDER THE INTERNAL REVENUE CODE OF 1939

Rulings and decisions published in Part II, Subpart A, of the Internal Revenue Bulletin are based on the applications of provisions of the Internal Revenue Code of 1939 and unless otherwise noted therein are published without consideration to any application of the provisions of the Internal Revenue Code of 1954, the Federal Firearms Act, or other public laws.

SECTION 22(a).-GROSS INCOME: GENERAL

DEFINITION

REGULATIONS 118, SECTION 39.22(a)-1. What

included in gross income.

Premiums by a corporation on an insurance contract on the life of an employee-shareholder. See Rev. Rul. 59-79, page 8.

SECTION 115 (a).-DISTRIBUTIONS BY CORPORATIONS: DEFINITION OF DIVIDEND

REGULATIONS 118, SECTION 39.115 (a)-1. Dividends.

Payment of premiums by a corporation on a life insurance contract on the life of an employee-shareholder. See Rev. Rul. 59-79, page 8.

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PART VI

ITEMS OF GENERAL INTEREST

TO APPLICANTS FOR SPECIAL ENROLLMENT TO PRACTICE AS AGENT BEFORE THE INTERNAL REVENUE SERVICE WHO DESIRE TO TAKE THE WRITTEN EXAMINATION WHICH WILL BE HELD ON JUNE 24 AND 25, 1959.

SECTION 1. PURPOSE.

Announcement 59-28

The purpose of this document is to prescribe standards and procedures with respect to applicants who seek special enrollment to practice as agents before the Internal Revenue Service pursuant to section 10.3 (e) of Department Circular No. 230, as revised, and who desire to take the June 1959 written examination.

SEC. 2. APPLICATION FORMS.

.01 Copies of the application forms (Form 23 revised March 1959) may be procured from the office of the Director of Practice or from the offices of District Directors of Internal Revenue.

.02 Applicants should study the application forms carefully as all directives must be met.

.03 Particular attention is directed to the requirement specified in Item No. 9 of the applicable Form 23 that the applicant shall set forth therein the extent and nature of his education and experience, with name and address of his employer (or previous employers), and a brief statement of the duties of each such employment with particular emphasis on the amount of time devoted to cost or general accounting or auditing work. Self-employed persons should give a brief statement of the nature of their work with particular emphasis the amount of time devoted to work which involved the knowledge and application of generally accepted commercial accounting and auditing principles, theory, or practice.

upon

.04 Applicants for enrollment should familiarize themselves with Department Circular No. 230, as revised 23 F.R. 9261, Internal Revenue Bulletin No. 1959-7, dated February 16, 1959, at page 6, and persons who have reason to believe that they do not meet the eligibility requirements of section 10.3 of that Department Circular or who have reason to believe that they are ineligible for enrollment under section 10.4 thereof, should not apply.

SEC. 3. PERSONS WHO MAY APPLY TO TAKE THE EXAMINATION.

.01. A person who has had at least 4 academic years of college and holds a bachelor degree from an accredited college or university

may make application to take the examination. Such applicant must show that he has completed the equivalent of at least 4 academic years of college and holds a baccalaureate degree (A.B., B.S., B.B.A., etc.) or higher degree (M.A., M.B.A., etc.) from an accredited college or university.

.02 A person who has had at least 4 years of accounting or other technical experience of a type satisfactory to the Director of Practice may also make application to take the examination. Such applicant must show that he is (i) an accountant engaged in rendering services of an accounting nature to the public on substantially a full time basis and that he has been so engaged for a period of the last 4 consecutive years, or (ii) that he is an accountant employed by a principal so engaged and has been so employed on substantially a full time basis for a period of the last 4 consecutive years, or (iii) that he is a person (not ineligble under section 10.4 (c) or (d) of Department Circular No. 230, as revised) who has had the equivalent (on substantially a full time basis) of at least 4 years of other technical experience of a type or types satisfactory to the Director of Practice. 03 Examples of the types of technical experience which will be considered satisfactory to the Director of Practice under subdivision (iii) of subsection .02, above, include, but are not limited to, experience:

(a) As a Federal or State bank examiner or savings and loan examiner:

(b) As an officer or employee of the Internal Revenue Service
engaged in applying, interpreting, or enforcing the internal
revenue laws (not otherwise eligible for special enrollment
pursuant to section 10.3 (f) of Department Circular No. 230,
as revised);

(c) As a State tax examiner or agent;
(d) As a cost or general accountant or an internal auditor for
a manufacturing, construction, transportation, merchandis-
ing, mercantile, or service or other business or commercial
enterprise, utility, or Governmental agency;

(e) As an office manager who supervises the work of account-
ants, auditors, or bookkeepers on a full time basis;

(f) As a cashier, internal auditor, or accountant of a financial institution, i.e., a bank, trust company, savings and loan association;

(g) As a self-employed person whose principal occupation was doing accounting work which required the knowledge of application of generally accepted commercial accounting principles, theory, or practice, or as an accountant employed by an accounting firm.

.04 Any education above high school level may be substituted for experience on the basis of one school year of resident study for 9 months of experience. One school year of study is considered to cover 30 semester hours or 45 quarter hours. Thus, a person with two years of higher education will be considered as having 18 months of qualifying experience.