SEO. 4. WRITTEN EXAMINATION. .01 An applicant for special enrollment is required to take and pass a written examination given under the supervision of the Office of Director of Practice sufficiently comprehensive to test the applicant as to his knowledge of Federal tax laws and their application. .02 The examination will be a two-day written test conducted simultaneously at the office of each District Director of Internal Revenue on Wednesday and Thursday, June 24 and 25, 1959. .03 The general subjects to be covered and the time allotted to each are indicated below: June 24 Income taxation for Individuals, Partnerships, These sections of the test will cover basic prob- June 24 Part II of above... June 25 Tax Accounting--- This section will cover the practical aspects of June 25 Administration, Procedure and Ethics.... This section will require a knowledge of filing re- .04 The questions will consist of multiple choice, essay type, truefalse and practical problems in the above subjects. .01 The application (Form 23 revised March 1959) including the statement of education and experience should be filed in duplicate with the: Director of Practice on or before Friday, May 1, 1959. The application should be properly executed under oath or affirmation. .02 The application shall be accompanied by a check or money order in the amount of $25.00, payable to the "Treasurer of the United States". The fee will be retained by the United States whether or not the applicant is granted enrollment. (Cash is not acceptable.) 03. In submitting his application, the applicant shall indicate thereon the District Director's office at which he prefers to take the written examination. .04 The applicant shall also submit with his application two notification cards with his name and address filled in thereon. (Notification cards may be obtained with the application forms). One of the notification cards will be used to notify the applicant of the receipt of his application. The other will be used to notify the applicant of the exact time and place at which he should report for taking the written examination. SEC. 6. INITIAL SCREENING. .01 Those persons whose applications appear regular on their face may sit for the examination. If time permits, an applicant whose application does not appear regular on its face will be afforded an opportunity by correspondence or conference, to correct any deficiency in the application. .02 Applicants will be notified by mail on or before Monday, June 1, 1959, whether or not they will be permitted to take the written examination and of the exact time and place to report for taking the examination. .03 An investigation will be made as to the truth of the averments made in the application and as to the character of the applicant. A report of this investigation will be forwarded to the Director of Practice for consideration. .04 If the applicant passes the written examination and if the investigative report is favorable to the applicant, the applicant will be specially enrolled by the Director of Practice to practice as agent before the Internal Revenue Service and the Director of Practice will issue to the applicant a special enrollment card. SEC. 7. INQUIRIES. Inquiries from Service personnel regarding this matter should be addressed to the Audit Division (O: A). Other inquiries should be addressed to the District Director or to the Director of Practice (C: DP). THREE AND ONE-FOURTH PERCENT TREASURY NOTES OF SERIES B-1960; FOUR PERCENT TREASURY BONDS OF 1980 Announcement 59-20 Treasury Department Circulars Nos. 1019 and 1020, both dated January 12, 1959, 24 F.R. 397 and 898, called attention to the invitation of the Secretary of the Treasury for subscriptions for 314 percent Treasury Notes of Series B-1960 and 4 percent Treasury Bonds of 1980. Both the notes and the bonds will be bearer instruments with interest coupons attached. The notes will be issued in denominations of $1,000, $5,000, $10,000, $100,000, $1,000,000, $100,000,000 and $500,000,000. The bonds will be issued in denominations of $500, $1,000, $5,000, $10,000, $100,000 and $1,000,000. The books were open only on January 12, 1959, for receipt of subscriptions for the notes, and on January 12 and 13, 1959, for the bonds. Among other things, the circulars provided that: (a) The notes will be dated January 21, 1959, and will bear interest from that date at the rate of 34 percent per annum, payable on a semiannual basis on May 15 and November 15, 1959, and May 15, 1960, at which date they will mature. The bonds will be dated January 23, 1959, and will bear interest from that date at the rate of 4 percent per annum, payable on a semiannual basis on August 15, 1959, and thereafter on February 15 and August 15 in each year until the principal amount becomes payable. They will mature February 15, 1980. Neither issue will be subject to call for redemption prior to maturity. (b) The income derived from both the notes and the bonds is subject to all taxes imposed under the Internal Revenue Code of 1954. Both issues are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. (c) The notes and bonds will be acceptable to secure deposits of public moneys. The notes will not be acceptable in payment of taxes. The bonds may, upon the death of the owner, be redeemed at par plus accrued interest to the date of payment, in payment of the Federal estate taxes due from the estate. EXTENSION TO BRITISH TERRITORIES OF THE INCOME TAX CONVENTION WITH THE UNITED KINGDOM Announcement 59-211 On August 19, 1957, the British Government gave notification to the United States Government of a desire that the application of the convention of April 16, 1945, between the United States and the Based on Department of State News Release No. 8, dated Jan. 2, 1959, and Department of State News Release No. 60, dated January 23, 1959. United Kingdom for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income [C.B. 1947-1, 209], as modified by supplementary protocols of June 6, 1946 [C.B. 1947-1, 217], May 25, 1954 [C.B. 1957-1, 665], and August 19, 1957 [L.R.B. 1958-49, 22], be extended to specified British overseas territories. That notification was given in accordance with Article XXII of the 1945 convention, as modified. On July 9, 1958, the United States Senate approved the proposed extension. On December 3, 1958, the United States Government, in accordance with the procedure prescribed in Article XXII, notified the British Government of United States acceptance of the British notification. The British notification and the United States acceptance constitute in effect an agreement between the United States and the United Kingdom for extending the application of the convention, as modified, to the specified British territories, subject to the modifications and with effect from the dates specified in the British notification. The extension will become operative between the United States and each of those territories when the particular territory completes such legislative or other internal measures as are necessary to give effect to the extension in such territory. According to information contained in notes of December 30, 1958, and January 19, 1959, from the British Embassy in Washington to the Department of State, the British territories named in column I of the table below have taken the last of the measures necessary to give full force and effect to the extension of the income tax convention of April 16, 1945, as modified, between the United States and the United Kingdom. The respective dates in 1958 on which the territories took those measures are indicated in column II of the table. Accordingly, the extension is effective (1) in the United States, with respect to United States tax, on and after January 1, 1959, and (2) in each of the territories with respect to tax for the year of assessment beginning on the date in 1959 indicated in column III of the table, and for subsequent years of assessment. EFFECTIVE DATE OF REVENUE RULING 58-620 EXTENDED 1 Announcement 59-24 The effective date of Revenue Ruling 58-620, I.R.B. 1958-52, 17, has been extended from February 1, 1959, to April 1, 1959. Revenue Ruling 58-620 concerns the manufacturers excise tax consequences of restoring unservicable automobile parts to useful condition under varying circumstances and, in effect, modified certain earlier Revenue Rulings concerning the same subject. The effective date of the Revenue Ruling has been extended to April 1, 1959, to enable manufacturers to accommodate their procedures to whatever changes were made necessary by the Revenue Ruling. The change in effective date will be reflected in the publication of Revenue Ruling 58-620 when it appears in Cumulative Bulletin 1958–2. ELECTION TO APPLY MORE FAVORABLE PERCENTAGE DEPLETION RATES ALLOWED CERTAIN MINE OWNERS AND OPERATORS 2 Announcement 59-25 An announcement published in Internal Revenue Bulletin 195841, 83 explained section 36 of the Technical Amendments Act of 1958, which permits certain mine owners and operators to elect under section 613(d) of the Internal Revenue Code of 1954 to apply the percentage depletion rates permitted by the 1954 Code to that portion of a taxable year ending after December 31, 1953, which is subject to the 1939 Code. Taxpayers should consider the proposed new definitions of certain minerals which were published in the Federal Register for February 10, 1959, 24 F.R. 975, before they decide whether or not to elect the 1954 Code rules. The proposed regulations under section 613 (b) of the 1954 Code were published in the Federal Register on November 3, 1956. Footnotes in section 1.613-2 (a) (2) of these proposed regulations provided that the 23-percent depletion rate would not apply to anorthosite "except for the production of alumina or aluminum compounds,' and also that with respect to ores of certain metals the 23-percent depletion rate would apply "only to the extent such metals are produced." Comments and suggestions were received with respect to the wording of the qualifying footnotes and, as a result thereof, they are being reconsidered in the review of the proposed regulations. In light of the above, taxpayers are reminded that in considering the election under section 613(d), the regulations under section 613(b) of the 1954 Code are in tentative form only, and they should consider the possibility of changes being made in the footnotes which would allow the 23-percent depletion rate for anorthosite to the extent alumina and aluminum compounds are extracted therefrom, and for the ores in question without requiring that metals be produced therefrom. Based on Technical Information Release 129, dated February 2, 1959. |