SECTION 4286.-IMPOSITION OF TAX Whether, for purposes of the exemption extended by Revenue Ruling 296, a national of one of the member nations of the British Commonwealth of Nations employed by some other member nation of the Commonwealth of Nations is considered to be a national of the country of the diplomatic mission where employed. See Rev. Rul. 5961, page 15. SECTION 4301.-IMPOSITION OF TAX [ISSUANCE OF CAPITAL STOCK AND SIMILAR INTEREST] Whether, for purposes of the exemption extended by Revenue Ruling 296, a national of one of the member nations of the British Commonwealth of nations employed by some other member nation of the Commonwealth of Nations is considered to be a national of the country of the diplomatic mission where employed. See Rev. Rul. 59– 61, page 15. SECTION 4311.-IMPOSITION OF TAX [ISSUANCE OF CERTIFICATES OF INDEBTEDNESS] Whether, for the purposes of the exemption extended by Revenue Ruling 296, a national of one of the member nations of the British Commonwealth of Nations employed by some other member nation of the Commonwealth of Nations is considered to be a national of the country of the diplomatic mission where employed. See Rev. Rul. 59-61, page 15. SECTION 4321.-IMPOSITION OF TAX [SALES OR TRANSFERS OF CAPITAL STOCK AND SIMILAR INTERESTS] Whether, for the purposes of the exemption extended by Revenue Ruling 296, a national of one of the member nations of the British Commonwealth of Nations employed by some other member nation of the Commonwealth of Nations is considered to be a national of the country of the diplomatic mission where employed. See Rev. Rul. 59-61, page 15. SECTION 4331.-IMPOSITION OF TAX [SALES OR TRANSFERS OF CERTIFICATES OF INDEBTEDNESS] Whether, for the purposes of the exemption extended by Revenue Ruling 296, a national of one of the member nations of the British Commonwealth of Nations employed by some other member nation of the Commonwealth of Nations is considered to be a national of the country of the diplomatic mission where employed. See Rev. Rul. 59-61, page 15. SECTION 4361.-IMPOSITION OF TAX [CONVEYANCES] Whether, for the purposes of the exemption extended by Revenue Ruling 296, a national of one of the member nations of the British Commonwealth of Nations employed by some other member nation of the Commonwealth of Nations is considered to be a national of the country of the diplomatic mission where employed. See Rev. Rul. 59-61, page 15. SECTION 4371.-IMPOSITION OF TAX [POLICIES ISSUED BY FOREIGN INSURERS] Whether, for the purposes of the exemption extended by Revenue Ruling 296, a national of one of the member nations of the British Commonwealth of Nations employed by some other member nation of the Commonwealth of Nations is considered to be a national of the country of the diplomatic mission where employed. See Rev. Rul. 59-61, page 15. SECTION 6103.-PUBLICITY OF RETURNS AND LISTS OF TAXPAYERS 26 CFR 301.6103(a)-101: Inspection of returns by committees of Congress other than those enumerated in Section 6103 (d) of the Internal Revenue Code of 1954. (Also Part II, Section 55.) E.O. 108011 Amendment of Executive Order No. 10703, authorizing the inspection of certain tax returns. By virtue of the authority vested in me by sections 55 (a), 508, 603, 729 (a), and 1204 of the Internal Revenue Code of 1939 (53 Stat. 29, 111, 171; 54 Stat. 989, 1008; 55 Stat. 722; 26 U.S.C. 55 (a), 508, 603, 729(a) and 1204), and by section 6103(a) of the Internal Revenue Code of 1954 (68A Stat. 753; 26 U.S.C. 6103 (a)), Executive Order No. 10703 of March 17, 1957, [C.B. 1957-1, 438], entitled "Inspection of Income, Excess-Profits, Declared-Value, Excess-Profits, CapitalStock, Estate, and Gift Tax Returns by the Select Committee of the Senate Established by Senate Resolution 74, 85th Congress, to Investigate Improper Activities in Labor-Management Relations, and for Other Purposes," is hereby amended by striking out "for the years 1945 to 1957, inclusive, shall, during the Eighty-fifth Congress," and inserting in lieu thereof "for the years 1945 to 1959, inclusive, shall, during the Eighty-fifth Congress and as long as the Committee is authorized to act during the Eighty-sixth Congress,”. 124 F.R. 521. This order shall be effective as of noon on January 3, 1959. THE WHITE HOUSE, January 21, 1959. DWIGHT D. EISENHOWER. (Filed by the Division of the Federal Register on January 21, 1959, 1:15 p.m., and published in the issue of the Federal Register for January 23, 1959, 24 F.R. 521.) SECTION 6423.-CONDITIONS TO ALLOWANCE IN THE CASE OF ALCOHOL AND TOBACCO TAXES 26 CFR 296.1: Scope of regulations in this subpart. T.D. 63591 TITLE 26-INTERNAL REVENUE, 1954.—CHAPTER I, SUBCHAPTER E, PART 296.— MISCELLANEOUS REGULATIONS RELATING TO TOBACCO MATERIALS, TOBACCO PRODUCTS, AND CIGARETTE PAPERS AND TUBES Application of section 6423, Internal Revenue Code of 1954, as OFFICE OF COMMISSIONER OF INTERNAL REVENUE, To Officers and Employees of the Internal Revenue Service and Others On September 26, 1958, a notice of proposed rulemaking with respect to Subpart A of regulations designated as Part 296 of Title 26 Code of Federal Regulations was published in the Federal Register (23 F.R. 7485). The proposed regulations in Subpart A would implement the provisions of section 6423 of the Internal Revenue Code of 1954, as amended, which impose certain limitations on the refund or credit of tax paid or collected on articles taxed under chapter 52 of the Internal Revenue Code of 1954, as amended, or by any corresponding provision of prior internal revenue laws. In accordance with the notice, interested parties were afforded an opportunity to submit written data, views, or arguments pertaining thereto. No written comments were received within the period of 30 days prescribed. Accordingly, the regulations as so published are hereby adopted. Section 6423 of the Internal Revenue Code of 1954, as amended, reads as follows: SEC. 6423. CONDITIONS TO ALLOWANCE IN THE CASE OF (a) CONDITIONS.-No credit or refund shall be allowed or made, in pursuance of a court decision or otherwise, of any amount paid or collected as an alcohol or tobacco tax unless the claimant establishes (under regulations prescribed by the Secretary or his delegate) (1) that he bore the ultimate burden of the amount claimed; or (2) that he has unconditionally repaid the amount claimed to the person who bore the ultimate burden of such amount; or (3) that (A) the owner of the commodity furnished him the amount claimed for payment of the tax, (B) he has filed with the 124 F.R. 599. Secretary or his delegate the written consent of such owner to the allowance to the claimant of the credit or refund, and (C) such owner satisfies the requirements of paragraph (1) or (2). (b) FILING OF CLAIMS.-No credit or refund of any amount to which subsection (a) applies shall be allowed or made unless a claim therefor has been filed by the person who paid the amount claimed, and, except as hereinafter provided in this subsection, unless such claim is filed after April 30, 1958, and within the time prescribed by law, and in accordance with regulations prescribed by the Secretary or his delegate. All evidence relied upon in support of such claim shall be clearly set forth and submitted with the claim. Any claimant who has on or before April 30, 1958, filed a claim for any amount to which subsection (a) applies may, if such claim was not barred from allowance on April 30, 1958, file a superseding claim after April 30, 1958, and on or before April 30, 1959, conforming to the requirements of this section and covering the amount (or any part thereof) claimed in such prior claim. No claim filed before before May 1, 1958, for the credit or refund of any amount to which subsection (a) applies shall be held to constitute a claim for refund or credit within the meaning of, or for purposes of, section 7422 (a); except that any claimant who instituted a suit before June 15, 1957, for recovery of any amount to which subsection (a) applies shall not be barred by this subsection from the maintenance of such suit as to any amount claimed in such suit on such date if in such suit he establishes the conditions to allowance required under subsection (a) with respect to such amount. (c) PERIOD NOT EXTENDED.-Any suit or proceeding, with respect to any amount to which subsection (a) applies, which is barred on April 30, 1958, shall remain barred. No claim for credit or refund of any such amount which is barred from allowance on April 30, 1958, shall be allowed after such date in any amount. (d) APPLICATION OF SECTION.-This section shall apply only if the credit or refund is claimed on the grounds that an amount of alcohol or tobacco tax was assessed or collected erroneously, illegally, without authority, or in any manner wrongfully, or on the grounds that such amount was excessive. This section shall not apply to (1) any claim for drawback, (2) any claim made in accordance with any law expressly providing for credit or refund where a commodity is withdrawn from the market, returned to bond, or lost or destroyed, and (3) any amount claimed with respect to a commodity which has been lost, where a suit or proceeding was instituted before June 15, 1957. (e) MEANING OF TERMS.-For purposes of this section— (1) ALCOHOL OR TOBACCO TAX.-The term "alcolhol or tobacco tax" means (A) any tax imposed by chapter 51 (other than part II of subchapter A, relating to occupational taxes) or by chapter 52 or by any corresponding provision of prior internal revenue laws, and (B) in the case of any commodity of a kind subject to a tax described in subparagraph (A), any tax equal to any such tax, any additional tax, or any floor stocks tax. (2) TAX.-The term "tax" includes a tax and an exaction denominated a "tax", and any penalty, addition to tax, additional amount, or interest applicable to any such tax. (3) ULTIMATE BURDEN.-The claimant shall be treated as having borne the ultimate burden of an amount of an alcohol or tobacco tax for purposes of subsection (a) (1), and the owner referred to in subsection (a)(3) shall be treated as having borne such burden for purposes of such subsection, only if— (A) he has not, directly or indirectly, been relieved of such burden or shifted such burden to any other person, (B) no understanding or agreement exists for any such relief or shifting, and (C) if he has neither sold nor contracted to sell the commodities involved in such claim, he agrees that there will be no such relief or shifting, and furnishes such bond as the Secretary or his delegate may require to insure faithful compliance with his agreement. In order to implement the Internal Revenue Code of 1954, as amended, with respect to the above provisions of law, 26 CFR Part 296, "Miscellaneous Regulations Relating to Tobacco Materials, Tobacco Products, and Cigarette Papers and Tubes," is promulgated. Subpart A.-Application of Section 6423, Internal Revenue Code of 1954, as Amended, To Refund or Credit of Tax on Tobacco Materials, Tobacco Products, and Cigarette Papers and Tubes. 296.5 Conditions to allowance of credit or refund. 296.6 Requirements for persons intending to file claim. 296.12 Deposit of securities in lieu of corporate surety. 296.13 Authority to approve bonds. 296.14 Termination of liability. 296.15 Release of pledged securities. 296.16 Penalties. PENALTIES Subpart A.-Application of Section 6423, Internal Revenue Code of 1954, as Amended, To Refund or Credit of Tax on Tobacco Materials, Tobacco Products, and Cigarette Papers and Tubes. GENERAL 8296.1 SCOPE OF REGULATIONS IN THIS SUBPART.-The regulations in this subpart relate to the limitations imposed by section 6423, I.R.C., on the refund or credit of tax paid or collected in respect to any article of a kind subject to a tax imposed by chapter 52, I.R.C., or by any corresponding provision of prior internal revenue laws. § 296.2 MEANING OF TERMS.-When used in this subpart, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meaning ascribed in this section. Article. The commodity in respect to which the amount claimed was paid or collected as a tax. Assistant regional commissioner.-An assistant regional commissioner (alcohol and tobacco tax) who is responsible to, and functions. under the direction and supervision of, a regional commissioner of internal revenue. Claimant. Any person who files a claim for a refund or credit of tax under this subpart. |