APPENDIX II

Statutory Provisions Not in the Internal Revenue Code but Relating to Internal Revenue

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Provisions Incorporated in the United States Code.'

TITLE 1.-GENERAL PROVISIONS'

1. WORDS DENOTING NUMBER, GENDER, AND SO FORTH. In determining the meaning of any Act or resolution of Congress, words importing the singular number may extend and be applied to several persons or things; words importing the plural number may include the singular; words importing the masculine gender may be applied to females; the words "insane person" and "lunatic" shall include every idiot, non compos, lunatic, and insane person; the word "person" may extend and be applied to partnerships and corporations, and the reference to any officer shall include any person authorized by law to perform the duties of such office, unless the context shows that such words were intended to be used in a more limited sense; and a requirement of an "oath" shall be deemed complied with by making affirmation in judicial form.

2. "COUNTY" AS INCLUDING "PARISH", AND SO FORTH.

The word "county" includes a parish, or any other equivalent subdivision of a State or Territory of the United States.

{3. "VESSEL" AS INCLUDING ALL MEANS OF WATER TRANSPORTATION.

The word "vessel" includes every description of water craft or other artificial contrivance used, or capable of being used, as a means of transportation on water. § 4. "VEHICLE" AS INCLUDING ALL MEANS OF LAND TRANSPORTATION. The word "vehicle" includes every description of carriage or other artificial contrivance used, or capable of being used, as a means of transportation on land. $5. "COMPANY" OR "ASSOCIATION" AS INCLUDING SUCCESSORS AND ASSIGNS. The word "company" or "association", when used in reference to a corporation, shall be deemed to embrace the words "successors and assigns of such company or association", in like manner as if these last-named words, or words of similar import, were expressed.

TITLE 5.-EXECUTIVE DEPARTMENTS AND GOVERNMENT OFFICERS AND EMPLOYEES

259. ACCOUNTS OF RECEIPTS OF INTERNAL REVENUE.

Separate accounts shall be kept at the Department of the Treasury of all moneys received from internal duties or taxes in each of the respective States, Territories, and collection districts, and of the amount of each species of duty and tax that shall accrue; so as to exhibit, as far as may be, the amount collected from each source of revenue, with the moneys paid as compensation and for allowances to the collectors and deputy collectors, inspectors, and other officers employed in each of the respective States, Territories, and collection districts. (R. S. §§ 239, 261; Feb. 18, 1875, c. 80, § 1, 18 Stat. 317; Aug. 7, 1946, c. 770, § 1 (48), 60 Stat. 870.)

$261. RULES FOR GOVERNMENT OF AGENTS REPRESENTING CLAIMANTS.

The Secretary of the Treasury may prescribe rules and regulations governing the recognition of agents, attorneys, or other persons representing claimants

The text is the text of the 1946 edition of the United States Code, except as otherwise indicated. Sections 1-5 are given in the form in which they were enacted into positive law by the act of July 30, 1947 (61 Stat. 633).

before his department, and may require of such persons, agents, and attorneys, before being recognized as representatives of claimants, that they shall show that they are of good character and in good repute, possessed of the necessary qualifications to enable them to render such claimants valuable service, and otherwise competent to advise and assist such claimants in the presentation of their cases. And such Secretary may after due notice and opportunity for hearing suspend, and disbar from further practice before his department any such person, agent, or attorney shown to be incompetent, disreputable, or who refuses to comply with the said rules and regulations, or who shall with intent to defraud, in any manner willfully and knowingly deceive, mislead, or threaten any claimant or prospective claimant, by word, circular, letter, or by advertisement. (July 7, 1884, c. 334, § 3, 23 Stat. 258.)

§ 326. DISCOVERY OF FRAUDS.

The General Counsel for the Department of the Treasury, under the direction of the Secretary of the Treasury, shall take cognizance of all frauds or attempted frauds upon the revenue, and shall exercise a general supervision over the measures for their prevention and detection, and for the prosecution of persons charged with the commission thereof. (R. S. § 376; May 10, 1934, c. 277, § 512 (b), 48 Stat. 759.)

TITLE 7.-AGRICULTURE

§ 56. ESTABLISHMENT OF COTTON STANDARDS; FURNISHING COPIES OF ESTABLISHED STANDARDS SOLD.

The Secretary of Agriculture is authorized to establish from time to time standards for the classification of cotton by which its quality or value may be judged or determined for commercial purposes, which shall be known as the official cotton standards of the United States. Any such standard or change or replacement thereof shall become effective only on and after a date specified in the order of the Secretary of Agriculture establishing the same, which date shall be not less than one year after the date of such order: Provided, That the official cotton standards established, effective August 1, 1923, under the United States Cotton Futures Act, shall be at the same time the official cotton standards for the purpose of this chapter unless and until changed or replaced under this chapter. Whenever any standard or change or replacement thereof shall become effective under this chapter, it shall also, when so specified in the order of the Secretary of Agriculture, become effective for the purposes of the United States Cotton Futures Act, and supersede any inconsistent standard established under said Act. Whenever the official cotton standards of the United States established under this chapter shall be represented by practical forms, the Department of Agriculture shall furnish copies thereof, upon request, to any person, and the cost thereof, as determined by the Secretary of Agriculture, shall be paid by the person making the request. The Secretary of Agriculture may cause such copies to be certified under the seal of the Department of Agriculture and may attach such conditions to the purchase and use thereof, including provision for the inspection, condemnation, and exchange thereof by duly authorized representatives of the Department of Agriculture, as he may find to be necessary to the proper application of the official cotton standards of the United States. (Mar. 4, 1923, c. 288, § 6, 42 Stat. 1518.)

§ 505. ACCESS TO INTERNAL-REVENUE RECORDS.

The Secretary of Agriculture shall have access to the tobacco records of the Commissioner of Internal Revenue and of the several collectors of internal revenue for the purpose of obtaining lists of the persons subject to sections 501-508 of this title and for the purpose of aiding the collection of the information required by said sections, and the Commissioner of Internal Revenue and the several collectors of internal revenue shall cooperate with the Secretary of Agriculture in effectuating the provisions of said sections. (Jan. 14, 1929, c. 69, § 5, 45 Stat. 1080; Aug. 27, 1935, c. 749, § 3, 49 Stat. 894.)

§ 511d. DESIGNATION OF MARKETS; MANNER.

* * * The Secretary [of Agriculture] shall have access to the tobacco records of the Collector of Internal Revenue and of the several collectors of internal revenue for the purpose of obtaining the names and addresses of growers who sold tobacco on any auction market, and the Secretary [of Agriculture] shall determine from said records the eligibility of such grower to vote in such referendum, and no

grower shall be eligible to vote in more than one referendum. 1935, c. 623, § 5, 49 Stat. 732.)

TITLE 11.-BANKRUPTCY

(Aug. 23,

35. DEBTS NOT AFFECTED BY A DISCHARGE.

A discharge in bankruptcy shall release a bankrupt from all of his provable debts, whether allowable in full or in part, except such as (1) are due as a tax levied by the United States * * * (July 1, 1898, c. 541, § 17, 30 Stat. 550; June 22, 1938, c. 575, § 1, 52 Stat. 851.)

(j) Debts owning to the United States or any State or subdivision thereof as a penalty or forfeiture shall not be allowed, except for the amount of the pecuniary loss sustained by the act, transaction, or proceeding out of which the penalty or forfeiture arose, with reasonable and actual costs occasioned thereby and such interest as may have accrued thereon according to law.

(July 1, 1898, c. 541, § 57, 30 Stat. 560; June 22, 1938, c. 575, § 1, 52 Stat. 867.) §104. DEBTS WHICH HAVE PRIORITY.

(a) The debts to have priority, in advance of the payment of dividends to creditors, and to be paid in full out of bankrupt estates, and the order of payment, shall be (1) the actual and necessary costs and expenses of preserving the estate subsequent to filing the petition; the fees for the referees' salary fund and for the referees' expense fund; the filing fees paid by creditors in involuntary cases; where property of the bankrupt, transferred or concealed by him either before or after the filing of the petition, shall have been recovered for the benefit of the estate of the bankrupt by the efforts and at the cost and expense of one or more creditors, the reasonable costs and expenses of such recovery; the costs and expenses of administration, including the trustee's expenses in opposing the bankrupt's discharge, the fees, the mileage payable to witnesses as now or hereafter provided by the laws of the United States, and one reasonable attorney's fee, for the professional services actually rendered, irrespective of the number of attorneys employed, to the petitioning creditors in involuntary cases and to the bankrupt in voluntary and involuntary cases, as the court may allow; (2) wages, not to exceed $600 to each claimant, which have been earned within three months before the date of the commencement of the proceeding, due to workmen, servants, clerks, or traveling or city salesmen on salary or commission basis, whole or part time, whether or not selling exclusively for the bankrupt; (3) where the confirmation of an arrangement or wage-earner plan or the bankrupt's discharge has been refused, revoked, or set aside upon the objection and through the efforts and at the cost and expense of one or more creditors, or, where through the efforts and at the cost and expense of one or more creditors, evidence shall have been adduced resulting in the conviction of any person of an offense under this title, the reasonable costs and expenses of such creditors in obtaining such refusal, revocation, or setting aside, or in adducing such evidence; (4) taxes legally due and owing by the bankrupt to the United States or any State or any subdivision thereof: Provided, That no order shall be made for the payment of a tax assessed against any property of the bankrupt in excess of the value of the interest of the bankrupt estate therein as determined by the court: And provided further, That, in case any question arises as to the amount or legality of any taxes, such question shall be heard and determined by the court; and (5) debts owing to any person, including the United States, who by the laws of the United States in entitled to priority, and rent owing to a landlord who is entitled to priority by applicable State law: Provided, however, That such priority for rent to a landlord shall be restricted to the rent which is legally due and owing for the actual use and occupancy of the premises affected, and which accrued within three months before the date of bankruptcy.

(b) Debts contracted while a discharge is in force or after the confirmation of an arrangement shall, in the event of a revocation of the discharge or setting aside of the confirmation, have priority and be paid in full in advance of the payment of the debts which were provable in the bankruptcy or arrangement proceeding, as the case may be. (July 1, 1898, c. 541, § 64, 30 Stat. 563; June 22, 1938, c. 575, § 1, 52 Stat. 874; June 28, 1946, c. 512, § 12, 60 Stat. 330.)

1 So in original.

(b) The provisions of section 96 of this title to the contrary notwithstanding, * * * statutory liens for taxes and debts owing to the United States or any State or subdivision thereof, created or recognized by the laws of the United States or of any State, may be valid against the trustee, even though arising or perfected while the debtor is insolvent and within four months prior to the filing of the petition in bankruptcy or of the original petition under chapter 10, 11, 12, or 13 of this title, by or against him. Where by such laws such liens are required to be perfected and arise but are not perfected before bankruptcy, they may nevertheless be valid, if perfected within the time permitted by and in accordance with the requirements of such laws, except that if such laws require the liens to be perfected by the seizure of property, they shall instead be perfected by filing notice thereof with the court.

(c) Where not enforced by sale before the filing of a petition in bankruptcy or of an original petition under chapter 10, 11, 12, or 13 of this title, though valid under subdivision (b) of this section, statutory liens, including liens for taxes or debts owing to the United States or to any State or subdivision thereof, on personal property not accompanied by possession of such property, and liens whether statutory or not, of distress for rent shall be postponed in payment to the debts specified in clauses (1) and (2) of subdivision (a) of section 104 of this title, and except as against other liens, such liens for wages or for rent shall be restricted in the amount of their payment to the same extent as provided for wages and rent respectively in subdivision (a) of section 104 of this title.

(July 1, 1898, c. 541, § 67, 30 Stat. 564; June 22, 1938, c. 575, § 1, 52 Stat. 876-877.) $205. REORGANIZATION OF RAILROADS ENGAGED IN INTERSTATE COMMERCE.

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(m) "Railroad corporation" and "person" defined.

The term "railroad corporation" as used in this section means any common carrier by railroad engaged in the transportation of persons or property in interstate commerce, except a street, a suburban, or interurban electric railway which is not operated as a part of a general railroad system of transportation or which does not derive more than 50 per centum of its operating revenues from the transportation of freight in standard steam railroad freight equipment. Wherever used in this section the term "person" shall include an individual, corporation, partnership, association, joint-stock company, unincorporated organization, or a government or political subdivision thereof.

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(r) Separability clause.

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If any provision of this section, or the application thereof to any person or circumstances, is held invalid, the remainder of this section, or application of such provision to other persons or circumstances, shall not be affected thereby.

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(July 1, 1898, c. 541, § 77, as added Mar. 3, 1933, c. 204, § 1, 47 Stat. 1474, and amended Aug. 27, 1935, c. 774, 49 Stat. 911; June 26, 1936, c. 833, 49 Stat. 1969.)

506. IN GENERAL.

Chapter 10.-Corporate Reorganizations

For the purposes of this chapter, unless inconsistent with the context

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(3) "Corporation" shall mean a corporation, as defined in this title, which could be adjudged a bankrupt under this title, and any railroad corporation excepting a railroad corporation authorized to file a petition under section 205 of this title; * * * (July 1, 1898, c. 541, § 106, as added June 22, 1938, c. 575, § 1, 52 Stat. 883.)

§ 667. TAXES; EXEMPTION FROM STAMP TAXES.

The issuance, transfer, or exchange of securities, or the making or delivery of instruments of transfer under any plan confirmed under this chapter, shall be exempt from any stamp taxes now or hereafter imposed under the laws of the United States or of any State. (July 1, 1898, c. 541, § 267, as added June 22, 1938, c. 575, § 1, 52 Stat. 903.)

$669. SAME; PLAN TO AVOID TAXES; OBJECTION TO CONFIRMATION.

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Where it appears that a plan has for one of its principal purposes the avoidance of taxes, objection to its confirmation may be made on that ground by the Secretary of the Treasury, or, in the case of a State, by the corresponding official or other person so authorized. Such objections shall be heard and determined by the judge, independently of other objections which may be made to the confirmation of the plan, and, if the judge shall be satisfied that such purpose exists, he shall refuse to confirm the plan. (July 1, 1898, c. 541, § 269, as added June 22, 1938, c. 575, § 1, 52 Stat. 904.)

671. SAME; ASSESSMENT AND PAYMENT OR ACCEPTANCE OF PLAN BY TAXING

AGENCY.

Any provision in this chapter to the contrary notwithstanding, all taxes which may be found to be owing to the United States or any State from a debtor within one year from the date of the filing of a petition under this chapter and have not been assessed prior to the date of the confirmation of a plan under this chapter, and all taxes which may become owing to the United States or any State from a receiver or trustee of a debtor or from a debtor in possession, shall be assessed against, may be collected from, and shall be paid by the debtor or the corporation organized or made use of for effectuating a plan under this chapter: Provided, however, That the United States or any State may in writing accept the provisions of any plan dealing with the assumption, settlement, or payment of any such tax. (July 1, 1898, c. 541, § 271, as added June 22, 1938, c. 575, § 1, 52 Stat. 904.)

Chapter 13.-Wage Earners' Plans

1080. TAXES; PAYMENT; ACCEPTANCE OF ARRANGEMENT BY TAXING AGENCY. Any provision in this chapter to the contrary notwithstanding, all taxes which may be found to be owing to the United States or any State from a debtor within one year from the date of the filing of a petition under this chapter, and have not been assessed prior to the date of the confirmation of a plan under this chapter, and all taxes which may become owing to the United States or any State from a debtor shall be assessed against, may be collected from, and shall be paid by the debtor: Provided, however, That the United States or any State may in writing accept the provisions of any plan dealing with the assumption, settlement, cr payment of any such tax. (July 1, 1898, c. 541, § 680, as added June 22, 1938, c. 575, § 1, 52 Stat. 938.)

TITLE 12.-BANKS AND BANKING

484. LIMITATION ON VISITORIAL POWERS.

No bank shall be subject to any visitorial powers other than such as are authorized by law, or vested in the courts of justice or such as shall be or shall have been exercised or directed by Congress, or by either House thereof or by any Committee of Congress or of either House duly authorized. (R. S. § 5240; Feb. 19, 1875, c. 89, 18 Stat. 329; Dec. 23, 1913, c. 6, § 21, 38 Stat. 271.)

FEDERAL RESERVE BANKS

531. EXEMPTION FROM TAXATION.

Federal reserve banks, including the capital stock and surplus therein and the income derived therefrom, shall be exempt from Federal, State, and local taxation, except taxes upon real estate. (Dec. 23, 1913, c. 6, § 7, 38 Stat. 258; Mar. 3, 1919, c. 101, § 1, 40 Stat. 1314.)

[But see section 742a of title 31.]

NATIONAL BANK CIRCULATION

$541. TAX ON CIRCULATING NOTES GENERALLY.

In lieu of all existing taxes, every association shall pay to the Treasurer of the United States, in the months of January and July, a duty of one-half of 1 per centum each half year upon the average amount of its notes in circulation. (R. S. § 5214; Mar. 3, 1883, c. 121, § 1, 22 Stat. 488.)

$542. TAX ON CIRCULATING NOTES SECURED BY 2 PER CENTUM BONDS.

Every national banking association having on deposit, as provided by law, bonds of the United States bearing interest at the rate of 2 per centum per annum,