(3) for the offense of willfully aiding or assisting in, or procuring, counseling, or advising, the preparation or presentation under, or in connection with any matter arising under, the internal revenue laws, of a false or fraudulent return, affidavit, claim, or document (whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document).

For offenses arising under section 37 of the Criminal Code, March 4, 1909, 35 Stat. 1096 (U. S. C., Title 18, § 88),' where the object of the conspiracy is to attempt in any manner to evade or defeat any tax or the payment thereof, the period of limitation shall also be six years. The time during which the person committing any of the offenses above mentioned is absent from the district wherein the same is committed shall not be taken as any part of the time limited by law for the commencement of such proceedings. Where a complaint is instituted before a commissioner of the United States within the period above limited, the time shall be extended until the discharge of the grand jury at its next session within the district.

(c) CIVIL SUITS.

For period of limitation in respect of—

Suits for fines, penalties, and forfeitures, see section 1047 of the Revised Statutes (U. S. C., Title 28, § 791).2

Suits for erroneous refunds, see section 3746.

[For postponements by reason of war, see section 3804.

For suspension of running of statute until three years after termination of hostilities, see section 3287 of Title 18 of the United States Code (62 Stat. 828).]

SUBCHAPTER F-CLOSING AGREEMENTS AND

COMPROMISES

SEC. 3760. CLOSING AGREEMENTS.

(a) AUTHORIZATION.-The Commissioner (or any officer or employee of the Bureau of Internal Revenue, including the field service, authorized in writing by the Commissioner) is authorized to enter into an agreement in writing with any person relating to the liability of such person (or of the person or estate for whom he acts) in respect of any internal revenue tax for any taxable period.

(b) FINALITY.-If such agreement is approved by the Secretary, the Under Secretary, or an Assistant Secretary, within such time as may be stated in such agreement, or later agreed to, such agreement shall be final and conclusive, and, except upon a showing of fraud or malfeasance, or misrepresentation of a material fact—

(1) The case shall not be reopened as to the matters agreed upon or the agreement modified by any officer, employee, or agent of the United States, and

1 Section 37 of the Criminal Code has been superseded by section 371 of Title 18 of the United States Code (62 Stat. 701); see Appendix II.

R. S. 1047 has been superseded by section 2462 of Title 28 of the United States Code (62 Stat. 974); see Appendix II.

(2) In any suit, action, or proceeding, such agreement, or any determination, assessment, collection, payment, abatement, refund, or credit made in accordance therewith, shall not be annulled, modified, set aside, or disregarded.

SEC. 3761. COMPROMISES.

(a) AUTHORIZATION.-The Commissioner, with the approval of the Secretary, or of the Under Secretary, or of an Assistant Secretary,1 may compromise any civil or criminal case arising under the internal revenue laws prior to reference to the Department of Justice for prosecution or defense; and the Attorney General may compromise any such case after reference to the Department of Justice for prosecution or defense.

(b) RECORDS.-Whenever a compromise is made by the Commissioner in any case, there shall be placed on file in the office of the Commissioner the opinion of the General Counsel for the Department of the Treasury, or of the officer acting as such, with his reasons therefor, with a statement of—

(1) The amount of tax assessed.

(2) The amount of additional tax or penalty imposed by law in consequence of the neglect or deliquency of the person against whom the tax is assessed, and

(3) The amount actually paid in accordance with the terms of the compromise.

(c) CROSS REFERENCE.

For compromises after judgment, see R. S. 3469 (U. S. C., Title 31, § 194).

SEC. 3762, PENALTIES.

Any person who, in connection with any compromise under section 3761, or offer of such compromise, or in connection with any closing agreement under section 3760, or offer to enter into any such agreement, willfully—

(a) CONCEALMENT OF PROPERTY.-Conceals from any officer or employee of the United States any property belonging to the estate of a taxpayer or other person liable in respect of the tax, or

(b) WITHHOLDING, FALSIFYINg, and DestroYING RECORDS.— Receives, destroys, mutilates, or falsifies any book, document, or record, or makes under oath any false statement, relating to the estate or financial condition of the taxpayer or other person liable in respect of the tax

shall, upon conviction thereof, be fined not more than $10,000 or imprisoned for not more than one year, or both.

1 The words "of the Treasury" are omitted.

CHAPTER 37-ABATEMENTS, CREDITS, AND

REFUNDS

SEC. 3770. AUTHORITY TO MAKE ABATEMENTS, CREDITS, AND REFUNDS.

(a) TO TAXPAYERS.

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(1) ASSESSMENTS AND COLLECTIONS GENERALLY.-Except as otherwise provided by law in the case of the Commissioner, subject to regulations prescribed by the Secretary, is authorized to remit, refund, and pay back all taxes, erroneously or illegally assessed or collected, all penalties collected without authority, and all taxes that appear to be unjustly assessed or excessive in amount, or in any manner wrongfully collected.

(2) ASSESSMENTS AND COLLECTIONS AFTER LIMITATION PERIOD. Any tax (or any interest, penalty, additional amount, or addition to such tax) assessed or paid after the expiration of the period of limitation properly applicable thereto shall be considered an overpayment and shall be credited or refunded to the taxpayer if claim therefor is filed within the period of limitation for filing such claim.

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(3) DATE OF ALLOWANCE.-Where the Commissioner has signed a schedule of overassessments in respect of any internal revenue tax imposed by this title, the date on which he first signed such schedule shall be considered as the date of allowance of refund or credit in respect of such tax.

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(4) DELEGATION OF AUTHORITY ΤΟ COLLECTORS ΤΟ MAKE REFUNDS. The Commissioner is authorized to delegate, with the approval of the Secretary, to collectors any authority, duty, or function which the Commissioner is authorized or required to exercise or perform under paragraph (1), (2), or (3) of this subsection, where the amount involved (exclusive of interest, penalties, additions to the tax, and additional amounts) does not exceed $1,000.

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(5) CROSS REFERENCES.

For limitations on refunds and credits in case of

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Miscellaneous taxes, see section 3313.

[For restrictions on transfers and assignments of claims against the United States, see R. S. 3477 (31 U. S. C. 203).

For set-off of claims against amounts due the United States, see the act of March 3, 1875, as amended by section 13 of the act of March 3, 1933 (47 Stat. 1516; 31 U. S. C. 227).

For requirement of estimates of appropriations for refunds, see section 1317 of the Revenue Act of 1921 (31 U. S. C. 602).

For establishment of account designated "Refund of Moneys Erroneously Received and Covered," see section 18 of the Permanent Appropriations Repeal Act (48 Stat. 1231; 31 U. S. C. 725q).]

(c) RULE WHERE NO TAX LIABILITY.-An amount paid as tax shall not be considered not to constitute an overpayment solely by reason of the fact that there was no tax liability in respect of which such amount was paid.

SEC. 3771. INTEREST ON OVERPAYMENTS.

(a) RATE.-Interest shall be allowed and paid upon any overpayment in respect of any internal revenue tax at the rate of 6 per centum per annum.

(b) PERIOD.-Such interest shall be allowed and paid as follows: (1) CREDITS.-In the case of a credit, from the date of the overpayment to the due date of the amount against which the credit is taken, but if the amount against which the credit is taken is an additional assessment of a tax imposed by the Revenue Act of 1921, 42 Stat. 227, or any subsequent Revenue Act, then to the date of the assessment of that amount.

(2) REFUNDS.-In the case of a refund, from the date of the overpayment to a date preceding the date of the refund check by not more than 30 days, such date to be determined by the Commissioner, whether or not such refund check is accepted by the taxpayer after tender of such check to the taxpayer. The acceptance of such check shall be without prejudice to any right of the taxpayer to claim any additional overpayment and interest thereon.

(c) ADDITIONAL ASSESSMENT DEFINED.-AS used in this section the term "additional assessment" means a further assessment for a tax of the same character previously paid in part, and includes the assessment of a deficiency of any income or estate tax imposed by the Revenue Act of 1924, 43 Stat. 253, or by any subsequent revenue

act.

SEC. 3772. SUITS FOR REFUND.

(a) LIMITATIONS.

(1) CLAIM.-No suit or proceeding shall be maintained in any court for the recovery of any internal revenue tax alleged to have been erroneously or illegally assessed or collected, or of any penalty claimed to have been collected without authority, or of any sum alleged to have been excessive or in any manner wrongfully collected, until a claim for refund or credit has been duly filed with the Commissioner, according to the provisions of law in that regard, and the regulations of the Secretary established in pursuance thereof.

(2) TIME. No such suit or proceeding shall be begun before the expiration of six months from the date of filing such claim unless the Commissioner renders a decision thereon within that time, nor after the expiration of two years from the date of mailing by registered mail by the Commissioner to the taxpayer of a notice of the disallowance of the part of the claim to which such suit or proceeding relates.

(3) RECONSIDERATION AFTER MAILING OF NOTICE.-Any consideration, reconsideration, or action by the Commissioner with respect to such claim following the mailing of a notice by registered

mail of disallowance shall not operate to extend the period within which suit may be begun. This paragraph shall not operate * * * to prevent the suspension of the statute of limitations for filing suit under section 3774 (b) (2).

[For postponements by reason of war, see section 3804.] (b) PROTEST OR DURESS.-Such suit or proceeding may be maintained whether or not such tax, penalty, or sum has been paid under protest or duress.

(c) CROSS REFERENCES.

For provisions relating to claims for refund or credit filed with the Commissioner in respect of

* * *

Miscellaneous taxes, see section 3313.

[For duty of district attorneys to defend suits, see section 507 of Title 28 of the United States Code (62 Stat. 910).

For jurisdiction of district courts, see section 1346 of Title 28 of the United States Code (62 Stat. 933).

For payment by the Treasury of judgments against collectors or other officers, upon certificate of probable cause, see section 2006 of Title 28 of the United States Code (62 Stat. 960).]

(d) SUITS AGAINST COLLECTOR A BAR.-A suit against a collector (or former collector) or his personal representative for the recovery of any internal revenue tax alleged to have been erroneously or illegally assessed or collected, or of any penalty claimed to have been collected without authority, or of any sum alleged to have been excessive or in any manner wrongfully collected shall be treated as if the United States had been a party to such suit in applying the doctrine of res judicata in all suits instituted after June 15, 1942, in respect of any internal revenue tax

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SEC. 3774. REFUNDS AFTER PERIODS OF LIMITATION.

A refund of any portion of an internal revenue tax (or any interest, penalty, additional amount, or addition to such tax) shall be considered erroneous

(a) EXPIRATION OF PERIOD FOR FILING CLAIM.-If made after the expiration of the period of limitation for filing claim therefor, unless within such period claim was filed; or

(b) DISALLOWANCE OF CLAIM AND EXPIRATION OF PERIOD FOR FILING SUIT. In the case of a claim filed within the proper time and disallowed by the Commissioner, if the refund was made after the expiration of the period of limitation for filing suit, unless

(1) within such period suit was begun by the taxpayer, or (2) within such period, the taxpayer and the Commissioner agreed in writing to suspend the running of the statute of limitations for filing suit from the date of the agreement to the date of final decision in one or more named cases then pending before the courts. If such agreement has been entered into, the running of such statute of limitations shall be suspended in accordance with the terms of the agreement.

(c) CROSS REFERENCE.

For procedure by the United States to recover erroneous refunds, see section 3746.