the enforcement of this title [Internal Revenue Code]. (2) In case of change in law. The Commissioner may make all such regulations, not otherwise provided for, as may have become necessary by reason of any alteration of law in relation to internal revenue. (b) Retroactive of regulations or rulings. The Secretary, or the Commissioner with the approval of the Secretary, may prescribe the extent, if any, to which any ruling, regulation, or Treasury Decision, relating to the internal revenue laws, shall be applied without retroactive effect. Subchapter E-Administrative Provisions Common to Various Taxes PART 451-EXPORTATION WITHOUT PAYMENT OF TAX OF TOBACCO MANUFACTURES, OLEOMARGA [Insert following statutory quotation immediately preceding § 451.1; T.D. 5352, Mar 29, 1944, 9 F.R. 3480] SEC. 508. EXEMPTION FROM TAX ON PLAYING CARDS EXPORTED FOR USE OF ARMED FORCES OUTSIDE CONTINENTAL UNITED STATES. (Revenue Act of 1943.) (a) In general. Section 1830 (relating to the exemption from the tax upon playing cards exported) is amended to read as follows: SEC. 1830. EXEMPTION IN CASE OF EXPORTATION. Playing cards may be removed from the place of manufacture for export to a foreign country or for shipment to a possession of the United States (or, until the date on which the President proclaims that hostilities in the present war have termi nated, to a territory of the United States for the use of members of the military or naval forces of the United States) without payment of tax, or affixing stamps thereto, under such rules and regulations and the filing of such bonds as the Commissioner, with the approval of the Secretary, may prescribe. (b) Effective date. The amendment made by subsection (a) shall be effective as of January 1, 1942. § 451.1 Scope of regulations. The law makes no provision for removal of oleomargarine or adulterated butter without the payment of tax for shipment to the Territories of Alaska and Hawaii, or to possessions other than the Philippine Islands, Puerto Rico, or Virgin Islands. Under the amendment made by section 508 of the Revenue Act of 1943, playing cards may, beginning January 1, 1942, and continuing indefinitely, be removed without payment of tax for shipment to a possession of the United States. By the same amendment, the privilege is granted of removing playing cards without payment of tax for shipment to a territory of the United States for the use of members of the military or naval forces of the United States. However, this privilege, and the amendments of these regulations pursuant thereto, are effective only during the period January 1, 1942, to the date on which the President proclaims that hostilities in the present war have terminated. CODIFICATION: In § 451.1, the words "and playing cards" were inserted after the word "manufactures" in the third sentence; and the last two sentences were deleted and the text set forth above was substituted therefor, by Treasury Decision 5352, Mar. 29, 1944, 9 F.R. 3480. bers of the military or naval forces of the United States in Alaska or Hawaii, the manufacturer shall submit to the collector for his district the consent of the surety on his bond to such removal. Such consent shall be executed in duplicate. No particular form has been provided for this purpose; any form may be used so long as it is adequate to accomplish the intended purpose. The collector shall forward to the Commissioner the duplicate consent of surety to be attached to the duplicate bond in force. [Undesignated paragraph added by T.D. 5352, Mar. 29, 1944, 9 F.R. 3480] § 451.4 Requirements as to packing and marking, or branding; exemptions. (e) Each pack of playing cards intended to be removed from the factory for use of members of the military or naval forces of the United States in Alaska or Hawaii shall have affixed in place of the internal revenue stamp a label, which label shall be readily distinguishable from the internal revenue stamp and shall bear the following legend: Free of tax-for use only of U. S. military and naval forces in Alaska or Hawaii, or for use outside the jurisdiction of the internal revenue laws of the United States. [Sentence added by T.D. 5352, Mar. 29, 1944, 9 F.R. 3480] * * However, § 451.5 Shipping cases. (a) (1) Consignment. where playing cards are removed without payment of tax for shipment to Alaska or Hawaii for the use of military or naval forces of the United States, the case, etc., shall, if the shipment is direct, be consigned to the consignee in Alaska or Hawaii, or, if the shipment is to an Army port of embarkation or Navy supply depot, to the Army port transportation officer or Navy supply officer. [Sentence added by T.D. 5352, Mar. 29, 1944, 9 F.R. 3480] § 451.6 Application for withdrawal and entry for exportation, Form 550, revised. In the case of shipments (other than by parcel post) of playing cards to Alaska or Hawaii without payment of tax for the use of military or naval forces of the United States, the application on Form 550 shall be modified as set forth in 451.10 (a) (3), and shall be exe cuted and filed in duplicate. The port of lading, name of vessel, and the port of destination need not be entered on the application Form 550, but in all other respects the preparation, execution, and filing of such application form shall be in accordance with the provisions of this section. [Undesignated paragraph added by T.D. 5352, Mar. 29, 1944, 9 F.R. 3480] § 451.9 Delivery of shipments; bills of lading. With the exception (1) of shipments of playing cards to Alaska or Hawaii without payment of tax for use of members of the military or naval forces of the United States, as to which see § 451.10 (a) (3); and (2) parcel post shipments, as to which see § 451.10 (b); the manufacturer, upon release of a shipment for export (§ 451.8) will deliver such shipment either to the carrier or directly for customs inspection, as follows: CODIFICATION: The text of § 451.9 preceding paragraph (a) was amended to read as set forth above, by Treasury Decision 5352, Mar. 29, 1944, 9 F.R. 3480. § 451.10 Copies of Form 550, revised(a) Disposition by manufacturer. (3) In the case of shipments of playing cards to Alaska or Hawaii without payment of tax for use of members of the military or naval forces of the United States the Form 550 shall be modified and disposed of as follows: (i) The manufacturer shall insert on the original Form 550 immediately preceding the "Certificate of Mailing by Parcel Post", a "Certificate of Receipt" as follows: CERTIFICATE OF RECEIPT I certify that the playing cards herein described, except for the discrepancies as listed below, were delivered to me on 19, and that said playing cards are intended for shipment or delivery only for consumption or use outside the jurisdiction of the internal revenue laws of the United States, or for delivery to a territory of the United States for the use of military or naval forces of the United States therein. Discrepancies (Name) (Title) (ii) If the shipment is to be made from the factory direct to the consignee in Alaska or Hawaii, the original Form 550, and the case, etc., containing the playing cards, shall be forwarded by the manufacturer to the consignee. (iii) If the shipment is made to an Army port of embarkation or Navy supply depot for transshipment to Alaska or Hawaii, the original Form 550, and the case, etc., containing the playing cards, shall be forwarded by the manufacturer to the Army port transportation officer, or Navy supply officer, as the case may be. (iv) Upon receipt and verification of the shipment, the consignee in the territory or the Army or Navy officer in the continental United States to whom the original Form 550 had been forwarded by the manufacturer shall execute the "Certificate of Receipt" appearing on such Form 550, note thereon any discrepancies in the shipment, and return the executed form to the manufacturer. Such executed form shall then be forwarded promptly by the manufacturer to the appropriate collector. [Subparagraph (3) added by T.D. 5352, Mar. 29, 1944, 9 F.R. 34801 CODIFICATION: § 451.10 (b) was amended by Treasury Decision 5352, Mar. 29, 1944, 9 FR. 3480, by inserting after the words "by parcel post," in the first sentence "or shipments of playing cards by parcel post to Alaska or Hawaii for use of members of the military or naval forces of the United States,". § 451.10a Penalties. Section 1820 (b) and 3320 (a) of the Internal Revenue Code impose severe penalties for dealing in, within the United States, playing cards upon which the tax properly due has not been paid, or for possessing playing cards with design to avoid payment of the tax thereon. These sections apply to playing cards removed without payment of tax under these regulations, and accordingly, any person possessing, using, or dealing in, such playing cards otherwise than as authorized by these regulations may be subject to penalties prescribed therein. [T.D. 5352, Mar. 29, 1944, 9 F.R. 3481] PART 455-REWARDS FOR INFORMATION LEADING TO DETECTION AND PUNISHMENT OF PERSONS VIOLATING INTERNAL REVENUE LAWS [REVISED] § 455.1 Rewards for information. Under and by virtue of the provisions of section 3792 of the Internal Revenue Code (formerly section 3463 of the Revised Statutes of the United States), which authorize the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, to pay such sums as he may deem necessary, not exceeding in the aggregate the sum appropriated therefor, for detecting and bringing to trial and punishment persons guilty of violating the internal revenue laws, or conniving at violations of the same, in cases where such expenses are not otherwise provided for by law, the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, does hereby offer for information that shall lead to the detection and punishment of persons guilty of violating the internal revenue laws, or conniving at the same, such reward as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall deem suitable, but in no case exceeding 10 percent of the net amount of taxes, penalties, fines and forfeitures which, by reason of said information, shall be paid irrecoverably to the United States through suit or otherwise. Any person furnishing such information shall be eligible for reward under this Treasury decision unless he was an officer or employee of the Department of the Treasury at the time he came into possession of his information or at the time he divulged it. The rewards hereby offered are limited in their aggregate to the sum appropriated therefor and shall be paid only in cases not otherwise provided for by law. Claims for reward under the provisions hereof shall be made on Form 211, which may be obtained from Collectors of Internal Revenue or from the Bureau at Washington, D. C. (I.R.C. 3792, 53 Stat. 467; 26 U.S.C. 3792) [T.D. 5379, June 22, 1944, 9 F.R. 7046] Subpart F-Inspection of Certain Returns Under Sec. 458.308 Inspection of corporation statistical Subpart E-Inspection by Congressional § 458.201 Examination of returns by House Committee on Un-American Activities. CODIFICATION: In § 458.201, the following was added at the end of the first sentence, by Treasury Decision 5375, May 25, 1944, 9 F.R. 5769: "and the provisions of House Resolution 65 (Seventy-eighth Congress, first session), passed February 10, 1943." CROSS REFERENCE: For Executive order with respect to inspection of income, excessprofits, and capital stock returns by the Special Committee on Un-American Activities, House of Representatives, see E.O. 9444, Title 3, supra. § 458.204 Inspection by Select Committee to Investigate Federal Communications Commission. Pursuant to the provisions of section 257 (a) of the Revenue Act of 1926; section 55 of the Revenue Act of 1932, as amended by section 218 (h) of the National Industrial Recovery Act; sections 215 (e) and 216 (b) of the National Industrial Recovery Act; sections 55 (a), 701 (e), and 702 (b) of the Revenue Act of 1934; sections 105 (e) and 106 (c) of the Revenue Act of 1935; sections 55 (a), 351 (c), and 503 (a) of the Revenue Act of 1936; and sections 55 (a), 409, 601 (e) and 602 (c) of the Revenue Act of 1938, income tax returns made under the Revenue Act of 1932, the Revenue Act of 1932, as amended by the National Industrial Recovery Act, the Revenue Act of 1934, the Revenue Act of 1936, the Revenue Act of 1936, as amended by the Revenue Act of 1937, and the Revenue Act of 1938, and capital stock and excessprofits tax returns made under the National Industrial Recovery Act, the Revenue Act of 1934, the Revenue Act of 1935, as amended by the Revenue Act of 1936, the Revenue Act of 1936, and the Revenue Act of 1938, for the years 1932 to 1938, inclusive, shall be open to inspection by the Select Committee to Investigate the Federal Communications Commission, House of Representatives, or any duly authorized subcommittee thereof, for the purpose of carrying out the provisions of House Resolution 21 (Seventy-eighth Congress, first session), passed January 19, 1943. The inspection of returns herein authorized may be by the committee or a duly authorized subcommittee thereof, acting directly as a committee or a subcommittee, or by or through such examiners or agents as the committee or subcommittee may designate or appoint. Upon written notice by the chairman of the committee or of the authorized subcommittee to the Secretary of the Treasury, giving the names and addresses of the taxpayers whose returns it is necessary to inspect and the taxable periods covered by the returns, the Secretary and any officer or employee of the Treasury Department shall furnish such committee or subcommittee with any data relating to or contained in any such return, or shall make such return avail for inspection by the committee or subcommittee or by such examiners or agents as the committee or subcommittee may designate or appoint, in the office of the Commissioner of Internal Revenue. Any information thus obtained by the committee or the subcommittee thereof, which is relevant or pertinent to the purpose of the investigation, may be submitted by the committee to the House. (44 Stat. 51, 47 Stat. 189, 48 Stat. 208, 209, 698, 770, 771, 49 Stat. 1018, 1019, 1671, 1733, 1738, 52 Stat. 478, 564, 566, 568) [T.D. 5378, June 8, 1944, 9 F.R. 6395] NOTE: Treasury Decision 5390, July 11, 1944, 9 F.R. 7845, provides in part as follows: Pursuant to the provisions of sections 55 (a), 508, 603, 729 (a), and 1204 of the Internal Revenue Code, income tax, capital stock and declared value excess-profits tax returns for the years 1939 to 1944, inclusive, and excessprofits tax returns for the years 1940 to 1944, inclusive, shall be open to inspection by the Select Committee to Investigate the Federal Communications Commission, House of Representatives, or any duly authorized subcommittee thereof, for the purpose of carrying out the provisions of House Resolution 21 (Seventy-eighth Congress, first session), passed January 19, 1943, and subject to the rules and regulations prescribed in § 458.204. CROSS REFERENCE: For Executive order with respect to inspection of income, excess-profits, and capital stock tax returns by the Select Committee to Investigate the Federal Communications Commission, House of Representatives, see E.O. 9448, Title 3, supra. Subpart F-Inspection of Certain Returns INCOME RETURNS (INCLUDING PERSONAL HOLDING COMPANY AND UNJUST ENRICHMENT RETURNS), AND EXCESS-PROFITS AND CAPITAL STOCK TAX RETURNS, AND § 458.308 Inspection of corporation statistical transcript cards by Office of Price Administration. CODIFICATION: In § 458.308, the date "July 1, 1942" in the first sentence was changed to "July 1, 1943", by Treasury Decision 5336, Mar. 7, 1944, 9 F.R. 2684. returns by § 458.309 Inspection of Department of Commerce. Pursuant to the provisions of sections 55 (a), 508, 603, 729 (a), and 1204 of the Internal Revenue Code, income, excess profits, declared value excess profits, and capital stock tax returns made under the Internal Revenue Code, as amended, for the year 1941 and subsequent years, shall be open to inspection by the Department of Commerce. The inspection of such returns herein authorized may be made by any officer or employee of the Department of Commerce duly authorized by the Secretary of Commerce to make such inspection. Upon written notice by the Secretary of Commerce to the Secretary of the Treasury stating the classes of returns which it is desired to inspect, the Secretary of the Treasury and any officer or employee of the Treasury Department, with the approval of the Secretary of the Treasury, may furnish the Department of Commerce with any data on such returns or make the returns, or any of them, available in the Office of the Commissioner of Internal Revenue for inspection, and taking of such data as the Secretary of Commerce may designate. The information so obtained may be published or disclosed in statistical form: Provided, Such publication does not disclose, directly or indirectly, the name or address of any taxpayer. (Secs. 55 (a), 508, 603, 1204, 729 (a), 53 Stat. 1, 29, 111, 171, 54 Stat. 974, 989; 26 U.S.C. 55 (a), 508, 603, 1204, 729 (a). E.O. 9499, Title 3, supra) [T.D. 5417, Nov. 11, 1944, 9 F.R. 13557] PART OF 470-TAX-FREE SALES ARTICLES FOR GOVERNMENTAL USE [REVOKED] NOTE: Part 470 was revoked, by Treasury Decision 5418, Nov. 20, 1944, 9 F.R. 13914, effective as follows: (1) In respect of articles (other than articles enumerated in sections 2700, 2720, 3404, and 3407 of the Internal Revenue Code) sold or transferred to the United States, including subsidiary articles sold for incorporation in such articles, the revocation shall be effective as of June 1, 1944, except that the revocation shall not apply to deny an exemption otherwise applicable with respect to articles sold or transferred pursuant to a contract entered into prior to June 1, 1944, or to any agreement or change order supplemental to such contract bearing the same Government contract number, or an exemption authorized by the Secretary of the Treasury pursuant to section 307 (c) of the Revenue Act of 1943. (2) In respect of articles enumerated in sections 2700, 2720, 3404, and 3407 of the Internal Revenue Code sold or transferred to the United States, including subsidiary articles sold for incorporation in such articles, the revocation shall be effective on the first day of the first month which begins six months or more after the date of the termination of hostilities in the present war, except that the revocation shall not apply to deny an exemption otherwise applicable with respect to articles sold or transferred pursuant to a contract entered into prior to the effective date of the revocation, or to any agreement or change order supplemental to such contract bearing the same Government contract number. For this purpose the term "date of the termination of hostilities in the present war" means the date proclaimed by the President as the date of such termination, or the date specified in a concurrent resolution of the two Houses of Congress as the date of such termination, whichever is the earlier. (3) In respect of articles sold or transferred to any State, Territory of the United States, or political subdivision thereof, or the District of Columbia, including subsidiary articles sold for incorporation in such articles, the revocation shall be effective as of the date of filing of this Treasury decision with the Division of the Federal Register, except that the revocation shall not apply to deny an exemption otherwise applicable with respect to articles sold or transferred pursuant to a contract entered into prior to such date. |