CHAPTER 70.-JEOPARDY, BANKRUPTCY AND RECEIVERSHIPS SUBCHAPTER A.-JEOPARDY PART II-JEOPARDY ASSESSMENTS SECTION 6861.-JEOPARDY ASSESSMENTS OF INCOME, ESTATE, AND GIFT TAXES 26 CFR 301.6861-1: Jeopardy assessments of income, estate, and gift taxes. Amended regulations authorizing directors of the regional service centers to abate certain jeopardy assessments. See T.D. 6585, page 290. CHAPTER 74.-CLOSING AGREEMENTS AND COMPROMISES SECTION 7122.-COMPROMISES 26 CFR 301.7122-1: Compromises. Procedure for submission and handling of offers in compromise with respect to tobacco products, cigarette papers and tubes, and firearms. See Rev. Proc. 62-11, page 440. CHAPTER 75.-CRIMES, OTHER OFFENSES, AND SUBCHAPTER A.-CRIMES PART I.-GENERAL PROVISIONS SECTION 7209.-UNAUTHORIZED USE OR SALE 26 CFR 47.7209: Statutory provisions; unauthorized use or sale of stamps. Regulations under the Internal Revenue Code of 1954 relating to the unauthorized use or sale of documentary stamps. See T.D. 6589, page 228. CHAPTER MISCELLANEOUS PROVISIONS ENTRY-EXEMPTION FROM TAX OF DOMESTIC PICES BTE HASED FOR THE UNITED STATES 15 F3 5-1. W drawal of filled cheese ani ang maris from factories, free of 1 raz for use of the United States. Whether manufacturers of playing cards may ship cards, free of the excise tax, to representatives of the United States Veterans Adminiration for gratuitous distribution to members of the Armed Forces of the United States who are patients in hospitals and institutions operated by the governments of the several States and the District of Columbia. See Rev. Rul. 62-18, page 276. SECTION 7514.-AUTHORITY TO PRESCRIBE OR MODIFY SEALS 26 CFR 301.7514-1: Seals of office. Amended regulations establishing an oficial seal of office for the Dietor of Atlanta Regional Service Center, Atlanta, Georgia. See 12.6385, page 290. CHAPTER 78.-DISCOVERY OF LIABILITY AND SUBCHAPTER B.-GENERAL POWERS AND DUTIES SECTION 7622.-AUTHORITY TO ADMINISTER OATHS AND CERTIFY 26 CFR 301.7622-1: Authority to administer oaths and certify. Amended regulations authorizing directors of regional service centers to administer oaths and certify. See Dr. 6585, page 290. CHAPTER 79-DEFINITIONS SECTION FIGURACIONS 26 CFR 301.7701-9: Secretary or vs želegson, Amended regulations authorizing Pwers regional service centers to perform delegated movies 20 e Secretary. See T.D. 6585, page 290. 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. SUBTITLE A.-TAXES SUBJECT TO THE JURISDICTION OF THE BOARD OF TAX APPEALS CHAPTER 1.-INCOME TAX SUBCHAPTER B.-GENERAL PROVISIONS SECTION 23 (1).—DEDUCTIONS FROM GROSS INCOME: DEPRECIATION REGULATIONS 111, SECTION 29.23 (1)-1: Rev. Rul. 62-59 1 The Internal Revenue Service will follow the decision of the United States Court of Appeals for the First Circuit in Boston & Maine Railroad v. Commissioner, 206 Fed. (2d) 617 (1953). The Court held that the retirement method of accounting was a form of depreciation accounting and came under section 23(1) of the Internal Revenue Code of 1939, rather than section 23(f).) 1 Where a taxpayer has consistently employed the retirement method of accounting and has maintained continuously a regular and consistent practice of handling retirements, the opinion of the Court here 1 Based on Technical Information Release 373, dated March 27, 1962. with respect to the time of deduction will be followed in the absence of indications of bad faith or abuse. SECTION 23 (m). DEDUCTIONS FROM GROSS INCOME: DEPLETION REGULATIONS 111, SECTION 29.23 (m)-1: Depletion of mines, oil and gas wells, other natural de- ments. Extent to which the reduction in size of stone will be considered an ordinary treatment process for purposes of computing gross income from the property. See Rev. Rul. 62-5, page 88. REGULATIONS 118, SECTION 39.23 (m)-1: Depletion of mines, oil and gas wells, other natural deposits, and timber; depreciation of improve ments. Extent to which the reduction in size of stone will be considered an ordinary treatment process for purposes of computing gross income from the property. See Rev. Rul. 62–5, page 88. PART V.-RETURNS AND PAYMENT OF TAX SECTION 55.—PUBLICITY OF RETURNS 26 CFR 458.324: Inspection of returns by committees of Congress other than those enumerated in section 55 (d) of the Internal Revenue Code of 1939. Inspection of certain returns by the Senate Committee on the Judiciary. See E.O. 10981, page 288. Inspection of certain returns by the Senate Committee on Armed Services. See E.O. 11020, page 289. SUBCHAPTER C.-SUPPLEMENTAL PROVISIONS SUPPLEMENT B.-COMPUTATION OF NET INCOME SECTION 112(a).-RECOGNITION OF GAIN OR LOSS: GENERAL RULE REGULATIONS 118, SECTION 39.112(a)-1: Sales or exchanges. An exchange of stock for stock plus cash in the absence of a statutory reorganization. See Ct. D. 1868, below. SECTION 112(c).-RECOGNITION OF GAIN OR LOSS: GAIN FROM EXCHANGES NOT SOLELY IN KIND REGULATIONS 118, SECTION 39.112 (c)-1: Receipt of other property or money in tax-free exchange not connected with corporate reorganization. (Also Section 112(a); Regulations 118, Section 39.112(a)-1.) (Also Part I, Sections 356, 1002; 26 CFR 1.356-1, 1.1002-1.) Ct. D. 1868 INCOME TAX-INTERNAL REVENUE CODE OF 1939-DECISION OF COURT 1. GAIN OR LOSS-EXCHANGE OF STOCK FOR STOCK PLUS CASH- In the absence of a "reorganization" as that term is defined in sec- 2. JUDGMENT AFFIRMED. Judgment of the United States Court of Appeals for the Ninth SUPREME COURT OF THE UNITED STATES No. 60.-October Term, 1961 Grover D. Turnbow and Ruth H. Turnbow, petitioners v. Commissioner of Internal Revenue On writ of certiorari to the United States Court of Appeals for the Ninth Circuit [December 18, 1961.] MR. JUSTICE WHITTAKER delivered the opinion of the Court. This case involves and turns on the proper interpretation and interaction of sections 112(g) (1) (B), 112(b)(3) and 112(c)(1) of the Internal Revenue |