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Redemption of land prior to sale.

Redemption of land after sale.

Record of sales.

Redemptions to


cer resides; and his proceedings in relation thereto shall have the same effect as if the same were had in his proper collection district.

282 Fed. 628, Smith v. Gilliam.

SEC. 3201. Any person whose estate may be proceeded against as aforesaid shall have the right to pay the amount due, together with the costs and charges thereon, to the collector or deputy collector at any time prior to the sale thereof, and all further proceedings shall cease from the time of such payment.

SEC. 3202. The owners of any real estate sold as aforesaid, their heirs, executors, or administrators, or any person having any interest therein, or a lien thereon, or any person in their behalf, shall be permitted to redeem the land sold, or any particular tract thereof, at any time within one year after the sale thereof, upon payment to the purchaser, or, in case he can not be found in the county in which the land to be redeemed is situate, then to the collector of the district in which the land is situate, for the use of the purchaser, his heirs or assigns, the amount paid by the said purchaser and interest thereon at the rate of twenty per centum per annum.

The court rules and State laws govern as to the redemption of land sold under execution. See Reg. 12, revised 1920, p. 40. SEC. 3203 [as amended by sec. 3, act of March 1, 1879 (20 Stat. 827)]. It shall be the duty of every collector to keep a record of all sales of land made in his collection district, whether by himself or his deputies, or by another collector, in which shall be set forth the tax for which any such sale was made, the dates of seizure and sale, the name of the party assessed, and all pro- . ceedings in making said sale, amount of fees and expenses, the name of the purchaser and the date of the deed; and said record shall be certified by the officer making the sale. And on or before the fifth day of each succeeding month he shall transmit a copy of such record of the preceding month to the Commissioner of Internal Revenue.

And it shall be the duty of every deputy making sale, as aforesaid, to return a statement of all his proceedings to the collector, and to certify the record thereof. In case of the death or removal of the collector, or the expiration of his term of office from any other cause, said record shall be delivered to his successor in office; and a copy of every such record, certified by the collector, shall be evidence in any court of the truth of the facts therein stated.

Record of sales, Book No. 21. Report on Form 128.

SEC. 3204. When any lands sold, as aforesaid, are redeemed be entered on rec- as heretofore provided, the collector shall make entry of the fact upon the record mentioned in the preceding section, and the said entry shall be evidence of such redemption.


Successive seiz- SEC. 3205. Whenever any property, personal or real, which is ures may be made, seized and sold by virtue of the foregoing provisions, is not sufficient to satisfy the claim of the United States for which distraint or seizure is made, the collector may, thereafter, and as often as the same may be necessary, proceed to seize and sell, in like manner, any other property liable to seizure of the person against whom such claim exists, until the amount due from him, together with all expenses, is fully paid.

Fees and charges in seiz

ure cases.

Proceedings in chancery to sub

SEC. 3206. The Commissioner of Internal Revenue shall by regulation determine the fees and charges to be allowed in all cases of distraint and other seizures; and shall have power to determine whether any expense incurred in making any distraint or seizure was necessary.

Regulations, No. 2, revised, page 48; T. D. 1373; T. D. 1521. SEC. 3207. In any case where there has been a refusal or neglect ject real estate to to pay any tax, and it has become necessary to seize and sell payment of tax. real estate to satisfy the same, the Commissioner of Internal

Revenue may direct a bill in chancery to be filed, in a district or circuit court of the United States, to enforce the lien of the United States for tax upon real estate, or to subject any real estate owned by the delinquent, or in which he has any right, title, or interest, to the payment of such tax. All persons having liens upon or claiming any interest in the real estate sought to be subjected as aforesaid, shall be made parties to such proceedings, and be brought into court as provided in other suits in chancery therein. And the said court shall, at the term next after the parties have been duly notified of the proceedings, unless otherwise ordered by the court, proceed to adjudicate all matters involved therein, and finally determine the merits of all claims to and liens upon the real estate in question, and, in all cases where a claim or interest of the United States therein is established, shall decree a sale of such real estate, by the proper officer of the court, and a distribution of the proceeds of such sale according to the findings of the court in respect to the interests of the parties and of the United States.

"The Judicial Code," Act of March 3, 1911 (36 Stat. 1087), abolished Circuit Courts and imposed the powers and duties thereof on District Courts.

Distraint is not superseded but the remedy is cumulative, Blacklock v. U. S., 208 U. S. 75.

laws, etc.



SEC. 3208 [as amended by sec. 3, act of Mar. 1, 1879 (20 Stat., Commissioner to have charge of 327)]. The Commissioner of Internal Revenue shall have charge real estate of all real estate which is now or shall become the property of thequired under inUnited States by judgment of forfeiture under the internalternal revenue laws, or which has been or shall be assigned, set off, or' conveyed by purchase or otherwise to the United States in payment of debts or penalties arising under the laws relating to internal revenue, or which has been or shall be vested in the United States by mortgage or other security for the payment of such debts, and of all trusts created for the use of the United States in payment of such debts due them; and, with the approval of the Secretary of the Treasury, may at public vendue, and upon not less than twenty days' notice, sell and dispose of all real estate owned or held by the United States as aforesaid; and until such sale the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, may lease such real estate owned as aforesaid on such terms and for such period as they shall deem expedient.

And in cases where real estate has or may became the property of the United States by conveyance or otherwise, in payment of or as security for a debt arising under the laws relating to internal revenue, and such debt shall have been paid, together with the interest thereon, at the rate of one per centum per month, to the United States, within two years from the date of the acquisition of such real estate, it shall be lawful for the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, to release by deed, or otherwise convey such real estate to the debtor from whom it was taken, or to his heirs or other legal representatives.

Reg. 12, revised 1920, p. 35.

ernment of offi

SEC. 3215. It shall be the duty of the Commissioner of Internal Regulations as Revenue, with the approval of the Secretary of the Treasury, toto suits, for govestablish such regulations, not inconsistent with law, for the cers. observance of revenue officers, district attorneys, and marshals, respecting suits arising under the internal-revenue laws in which the United States is a party, as may be deemed necessary for the just responsibility of those officers and the prompt collection of all revenues and debts due and accruing to the United States under such laws.

Regulations No. 12, revised

Moneys recov- SEC. 3216. All judgments and moneys recovered or received for ered by suits to be paid to collec- taxes, costs, forfeitures, and penalties, shall be paid to collectors as internal taxes are required to be paid.


Reg. 12, revised 1920, p. 21.

Taxes on spir- SEC. 3221 [Amended by sec. 6, act of March 1, 1879 (20 Stat. its accidentally 327)]. The Secretary of the Treasury upon the production to destroyed. him of satisfactory proof of the actual destruction by accidental fire or other casualty, and without any fraud, collusion, or negligence of the owner thereof, of any distilled spirits, while the same remained in the custody of any officer of internal revenue in any distillery warehouse, or bonded warehouse of the United States and before the tax thereon has been paid, may abate the amount of internal taxes accruing thereon, and may cancel any warehouse bond, or enter satisfaction thereon, in whole or in part, as the case may be. And if such taxes have been collected since the destruction of said spirits, the said Secretary shall refund the same to the owners thereof out of any moneys in the Treasury not otherwise appropriated. And when any distilled spirits are hereafter destroyed by accidental fire or other casualty, without any fraud, collusion, or negligence of the owner thereof, after the time when the same should have been drawn off by the gauger and placed in the distillery warehouse provided by law, no tax shall be collected on such spirits so destroyed, or if collected, it shall be refunded upon the production of satisfactory proof that the spirits were destroyed as herein specified. See also Sec. 5 of the Willis-Campbell Act, p. 26.

When tax on

lost spirits is



Casualty" means an accident; an event not to be foreseen or guarded against. Excessive and unusual summer heat is not a casualty, neither are undiscovered worm holes in whisky barrels a casualty within the meaning of this section. (Crystal Springs Distilling Co. v. Cox, Circuit Court, Kentucky, 1891; 47 Fed., 693; 37 Int. Rev. Rec., 328. Decision affirmed, Circuit Court of Appeals, 1892. 49 Fed., 555.)

Unavoidable casualty signifies events or accidents which human prudence, foresight, and sagacity can not prevent. (Wells v. Castees, 3 Gray, 325.)

Distilled spirits seized by an internal revenue officer and lost by his negligence, not lost through casualty, within section 3221. (United States v. Sisk, 176 Fed., 885.)

The destruction of spirits stored in distillery warehouses by fire while in the warehouse constituted a 66 removal." (48 Fed., 714, reversed; United States v. Peace et al. 53 Fed., 999. See Insurance Companies v. Thompson, 95 U. S. (5 Otto), 547; Freeman v. U. S. 157 Fed. 195.)

Liability of obligors on warehousing bonds to pay the tax on spirits destroyed in a distillery warehouse can be relieved only in the manner prescribed by the statute. (Farrell v. United States,. 8 Biss., 259; 99 U. S. (9 Otto), 221; 25 Int. Rev. Rec., 83.)

Regulations and instructions governing the abatement of taxes on spirits destroyed by fire, or other casualty. (Regulations No. 7, revised, and No. 14, revised.)

SEC. 3223 [Amended by sec. 3, act of March 1, 1879 (20 Stat. demnified by in-327)]. When the owners of distilled spirits in the cases provided for by the two preceding sections may be indemnified against such tax by a valid claim of insurance for a sum greater than the actual value of the distilled spirits before and without the tax being paid, the tax shall not be remitted to the extent of such insurance.

Suits to re- SEC. 3224. No suit for the purpose of restraining the assessment strain assessment collection of or collection of any tax shall be maintained in any court.



268 Fed. 668, Kausch v. Moore. 269 Fed. 447, Accardo v. Fontanot; 995, Thome v. Lynch. 272 Fed. 911, Connelly v. Gardner; 1014, Violette v. Walsh, T. D. 3169. 273 Fed. 182, Regal Drug Corp. v. Wardell. Reversed Dec. 11, 1922, U. S. unreported, T. D. 3422. 274 Fed. 108, Kelly v. Lewellyn; 375, Ledbetter v. Bailey. 276 Fed. 128, Polk v. Page. 277 Fed. 492, Middleton v. Mee. 278 Fed. 871, Fontenot v. Accardo. 282 Fed. 332, U. S. v. Zerbey. 282 Fed. 620, Pool v. Walsh.

A bill in equity will not lie to enjoin a collector of internal revenue from collecting a tax assessed by the Commissioner, although the tax is alleged in the bill to have been illegally assessed. (Snyder v. Marks, 109 U. S. 189; 29 Int. Rev. Rec., 403; Moore

v. Miller, 5 App. Cas., D. C., 413; Brown v. Foster, 194 Fed.,
855; T. D. 1760; Strauss v. Abrast Realty Co., 200 Fed., 253; T. D.

A collector can not be restrained from collecting an assessment
by injunction. (Pullan v. Kissinger, 2 Abb. (U. S.), 94; 11 Int.
Rev. Rec., 197; Kensett v. Stivers, 27 Int. Rev. Rec., 1; 18 Blatch.,
397; 10 Fed., 517; State Railroad Tax Cases, 92 U. S. (2 Otto),
613; Keely v. Sanders, 99 U. S., 443; Robbins v. Freeland, collector,
14 Int. Rev. Rec., 28; United States v. Hodson, 14 Int. Rev. Rec.,
100; Roback v. Taylor (1866), 4 Int. Rev. Rec., 170.)

Purely injunction bills can not be maintained to restrain the collection of taxes upon the sole ground of their unconstitutionality. (Allen v. Pullman Palace Car Co., 139 U. S., 658.)

A collector can not be enjoined from collecting a tax, but a suit to recover the money back when illegally collected is authorized. (Armour v. Roberts, 151 Fed., 846.)

The courts will not interfere by mandamus with the executive officers of the Government in the exercise of their ordinary official duties. (United States v. Black, 128 U. S., 40.)

Section 3224 forbids not only injunction but other forms of direct equitable relief. (Gouge v. Hart, 250 Fed., 802.)

In matters which require an executive officer to exercise judgment or discretion no rule will issue for a mandamus. (Carrick

v. Lamar, 116 U. S., 423.)

When mandamus may issue. (Marbury v. Madison, 1 Cranch
U. S., 137; United States v. Schurz, 102 U. S., 378.)

SEC. 3229. The Commissioner of Internal Revenue, with the advice and consent of the Secretary of the Treasury, may compromise any civil or criminal case arising under the internalrevenue laws instead of commencing suit thereon; and, with the advice and consent of the said Secretary and the recommendation of the Attorney General, he may compromise any such case after a suit thereon has been commenced. Whenever a compromise is made in any case there shall be placed on file in the office of the Commissioner the opinion of the Solicitor of Internal Revenue, or of the officer acting as such, with his reasons therefor, with a statement of the amount of tax assessed, the amount of additional tax or penalty imposed by law in consequence of the neglect or delinquency of the person against whom the tax is assessed, and the amount actually paid in accordance with the terms of the compromise.

See sec. 35, Title II, National Prohibition Act.
Reg. 12, revised 1920, pp. 24-26.

Offer in compromise submitted to the collector on Form 656.

SEC. 3230. No discontinuance or nolle prosequi of any prosecu



tion under section three thousand two hundred and fifty-seven of prosecutions. shall be allowed without the permission in writing of the Secretary of the Treasury and the Attorney General.

SEC. 3231. It shall be lawful for any court in which any suit

Continuance of

or criminal proceeding arising under the internal-revenue laws internal - revenue may be pending, to continue the same at any stage thereof, for cases. good cause shown on motion by the district attorney.


SEC. 3232. No person shall be engaged in or carry on any trade

Occupation not until tax is paid.

or business hereinafter mentioned until he has paid a special to be carried on tax therefor in the manner hereinafter provided.

A verdict in favor of defendant in a criminal action does not estop the United States from proving the special-tax liability in a civil action. (United States v. Schneider, 35 Fed., 107.)


SEC. 3233. Every person engaged in any trade or business on Trade or busiwhich a special tax is imposed by law shall register with the ness to be regiscollector 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.

Persons in part

SEC. 3234. Any number of persons doing business in copartnership at any one place shall be required to pay but one special tax. nership at same place liable for SEC. 3235. The payment of the special tax imposed shall not only one tax. exempt from an additional special tax the person carrying on a

Payment of one trade or business in any other place than that stated in the colspecial tax not to lector's register; but nothing herein contained shall require a places of busi- special tax for the storage of goods, wares, or merchandise in

Cover several


When more

is carried on 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.

Goods are offered for sale at the place where they are kept for sale, and where a sale may be effected. They are not offered for sale elsewhere by sending abroad an agent with samples or by establishing an office for the purpose of taking orders. (United States v. Chevalier, 107 Fed., 434, affirming 102 Fed., 125.)

But a wholesale liquor dealer at one point permitting actual delivery from warehouse at another point without prior constructive delivery at place where special-tax stamp is held is liable for special tax at the place of delivery. (De Bary v. Dunne, 172 Fed., 940; T. D. 1550.)

SEC. 3236. Whenever more than one of the pursuits or occuthan one pursuit pations hereinafter described are carried on in the same place by same place by the same person at the same time, except as hereinafter provided, same person at the tax shall be paid for each according to the rates severally same time. prescribed.

When special tax to be due.


Stamps for special taxes.

SEC. 3237 [as amended by sec. 53, act of Oct. 1, 1890 (26 Stat., 567)]. That all special taxes shall become due on the first day of July, eighteen hundred and ninety-one, and on the first day of July in each year thereafter, or on commencing any trade or business on which such tax is imposed. In the former case the tax shall be reckoned for one year; and in the latter case it shall be reckoned proportionately, from the first day of the month in which the liability to a special tax commenced to the first day of July following. Special tax stamps may be issued for the months of May and June, eighteen hundred and ninety-one, upon payment of the amount of tax reckoned proportionately under the laws now in force, and such stamps which have been or may be issued for the period ending April thirtieth, eighteen hundred and ninety (one) may upon payment of one-sixth of the amount required to be paid for such stamps for one year, be extended until July first, eighteen hundred and ninety-one, under such regulations as may be prescribed by the Commissioner of Internal Revenue.

And it shall be the duty of special taxpayers to render their returns to the deputy collector at such times within the calendar month in which the special tax liability commenced as shall enable him to receive such returns, duly signed and verified, not later than the last day of the month, except in cases of sickness or absence, as provided for in section three thousand one hundred and seventy-six of the Revised Statutes.

This section is amendatory of sections 3173 (p. 56), 3176 (p. 57) It also repeals the proviso to section 3 of the act of August 2, 1886, relative to the special tax of manufacturers of oleomargarine commencing business subsequent to the 30th day of June in any year.

SEC. 3238. All special taxes imposed by law, including the tax on stills or worms, shall be paid by stamps denoting the tax, and the Commissioner of Internal Revenue is required to procure appropriate stamps for the payment of such taxes; and the proAct Feb. 18, visions of sections thirty-three hundred and twelve and thirty1875 (18 Stat., 316). four hundred and forty-six, and all other provisions of law relating to the preparation and issue of stamps for distilled spirits, fermented liquors, tobacco, and cigars, shall, so far as applicable extend to and include such stamps for special taxes; and the Commissioner of Internal Revenue shall have authority to make all needful regulations relative thereto.

The special-tax stamp is not a license, but merely a receipt for the tax. It puts the United States under no obligation whatever to the holder beyond assuring him against prosecution under the special-tax_laws. (License Tax Cases, 5 Wall. 462; 6 Int. Rev. Rec., 36; T. D. 1484.)

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