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Payment of costs in compromise cases. Decision by Attorney-General, 24 Internal Revenue Record, 130.

Commissioner may direct an unconditional dismissal of a suit without recommendation of the Attorney-General (but see Sec. 3230 as to prosecutions under Sec. 3257).

In this case the question was presented whether sureties on a distiller's bond could be subjected to the penalty attached to the commission of an offense when the principal had effected a full and complete compromise with the government, under the sanction of an act of Congress (Sec. 3229) of prosecutions based upon the same offense and designed to secure the same penalty. Held, that the compromise pleaded must operate for the protection of the distiller against subsequent proceedings as fully as a former conviction or acquittal. United States v. Chouteau, 12 Otto, 603.

See, also, United States v. Ulrici, 12 Otto, 612. This case involved substantially the same questions considered in the above case, and was decided upon its authority.

Money deposited in compromise cannot be held by the United States as a set-off against taxes due. Boughton v. United States, 12 Court of Claims, 330; 13 ibid. 284.

Compromises. This mode of settling cases is often resorted to in cases of unintentional violations of law.

In cases of violations occurring through ignorance or neglect, and where no intention to defraud the revenue can be fairly inferred, reasonable offers in compromise will be considered; but where the intention to defraud is manifest, the compromising powers will be slow to intervene to protect the offenders from the full legal consequences of their own acts. Int. Rev. Reg., Series 7, No. 12, Revised, p. 39:

The power to compromise ceases after final judgment, so far as the commissioner is concerned.

Parties desiring relief in such cases should make their application to the Secretary of the Treasury. Secs. 3469 and 5292 R. S. Int. Rev. Reg., Series 7, No. 12, Revised, p. 37.

Under Secs. 5292 and 5293, the Secretary of the Treasury has power to remit or mitigate fines, penalties, or forfeitures,

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and to remove disabilities, before or after judgment or decree, and until the money is actually paid into the treasury.

SEC. 3230. No discontinuance or nolle prosequi of any prosecution under section three thousand two hundred and fifty-seven shall be allowed without the permission in writing of the Secretary of the Treasury and the Attorney-General.

of internal

SEC. 3231. It shall be lawful for any court, in which Continuance any suit or criminal proceeding arising under revenue cases. the internal revenue laws may be pending, to continue the same at any stage thereof, for good cause shown on motion by the district attorney.


ances of prosecutions.




3232. Trade or business not to be carried on until tax paid.

special tax.

3233. Trade or business to be registered.

3244. 3d.

[3233 a.] Selling on passenger railroad 3244. 4th. trains or vessels.

Rectifiers; special tax. Retail liquor dealers; special tax.

3234. Persons in partnership at same 3244. 4th. Wholesale liquor dealers;

special tax.

place liable for only one tax. 3235. Payment of one special tax not 3244. 5th. Retail dealers in malt lito cover several places of quors; special tax. business. 3244. 5th. Wholesale dealers in malt



3244. 1st.
3244. 2d.

3236. When more than one pursuit is


carried on in same place by 3244. 6th. Dealers in leaf tobacco desame person at same time. 3237. When special tax to be due, how 3244. 7th. Retail dealers in leaf toreckoned.

bacco defined.

3242. Carrying on business without

Brewer; special tax.
Manufacturers of stills;

3244. 8th.
3244. 9th.

[3242 a.] Same.

[3242 b.] Same as to manufacturers

3238. Stamps for special taxes.

3239. Special-tax stamp to be exhibited in place of business. 3240. List of special-tax payers to be 3244. 10th. Manufacturers of cigars exhibited in collector's office. defined. 3241. Death or removal after paying 3244. 11th. Peddlers of tobacco detax; business carried on withfined. out additional tax.


3244. 12th. Manufacturers of oleomargarine; special tax. payment of special tax; penal- 3244. 12th. Wholesale dealers in oleoties. margarine; special tax. 3244. 12th. Retail dealers in oleomar

Manufacturers of tobacco


garine; special tax.

and dealers in oleomargarine; 3245. Balance of distiller's special tax
to be refunded.

3243. Payment of special tax not to au- 3246. Special tax not to apply to vintners, nor apothecaries in certain cases.

thorize violation of State laws,
nor prohibit State taxation.

SEC. 3232. No person shall be engaged in or carry on any trade or business hereinafter mentioned until he has paid special tax therefor ness not to be in the manner hereinafter provided.

Trade or busi

carried on until tax paid.

For a full discussion of the right of the United States to impose special taxes on certain occupations such as liquor dealers, etc., which occupations are prohibited in several of the States by municipal law, see the decisions of the Supreme Court in the License Tax Cases, 5 Wall. 462.

The prohibition of engaging in or carrying on any business until a special tax has been paid is perhaps modified by Sec. 53, act October 1, 1890 (see Sec. 3237), which gives the taxpayer until the last day of the month in which the tax liability commences, to make his return.

Trade or business to

SEC. 3233. Every person engaged in any trade or business on which a special tax is imposed by be registered. law shall register with the collector of the district his name or style, place of residence, trade or business, and the place where such trade or business is to be carried on. In case of a firm or company, the names of the several persons constituting the same, and their places of residence, shall be so registered.

The registry herein provided for is usually effected by the special-tax payer making a return to the collector on what is known as Form 11.

Meaning of the words "place where business is to be carried on." Salt Co. v. Wilkinson, 8 Blatch. 30.

[SEC. 3233 a.] Joint resolution approved May 8, 1876 (19 Special-tax Stat. 213). That nothing contained in chap

stamps may be

issued for cer- ter three of title thirty-five of the Revised

tain kinds of

business on

passenger railroad trains or

Statutes shall prevent the issue, under such vessels. regulations as the Commissioner of Internal Revenue may prescribe, of special-tax stamps to persons carrying on the business of retail dealers in liquors, retail dealers in malt liquors, or dealers in tobacco, upon passenger railroad trains or upon steamboats or other vessels engaged in the business of carrying


Dealers in tobacco are no longer required to pay special tax. Under this resolution it is held that if wines or liquors are sold by agents passing from car to car the principal is liable to pay a special tax as retail liquor dealer for each agent, but where spirituous or malt liquors are sold only from one bar or a single room, as is generally the custom on steamboats, it is sufficient to pay the taxes for one place of business. The law does not authorize the issuance of special-tax stamps for the sale of liquors on boats moving from place to place, and not engaged in the business of carrying passengers. Internal Revenue Regulations, Series 7, No. 1, p. 37.

SEC. 3234. Any number of persons doing Persons in business in copartnership at any one place shall be required to pay but one special tax.

at same place
liable for only
one tax.

Payment of not to cover

one special tax

several places

SEC. 3235. The payment of the special tax imposed shall not exempt from an additional special tax the person carrying on a trade or business in any other place than that stated in the col- of business. lector's register; but nothing herein contained shall require a special tax for the storage of goods, wares, or merchandise in other places than the place of business, nor, except as hereinafter provided, for the sale by manufacturers or producers of their own goods, wares, and merchandise, at the place of production or manufacture, and at their principal office or place of business, provided no goods, wares, or merchandise shall be kept except as samples at said office or place of business.

Regular retail dealers in liquors, or in malt liquors holding special-tax stamps as such, may close their ordinary place of business for the time being, and, on the registry of the facts with the collector of the district in which the fair-grounds are situate, may do business under the regular stamps at one stand in the fair-grounds, without payment of additional tax; but before opening again their regular place of business, must

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