Sec. 3212. Collectors' monthly statement; 3213. Suits for fines, penalties, forfeitures, and taxes. 3214. Suits for taxes, etc., not to be brought without sanction of Commissioner. 3215. Regulations for government of district attorneys, marshals, etc. 3216. Moneys recovered to be paid to collectors. Sec. 3221 (amended). Taxes on spirits accidentally destroyed. 3222. Retrospective effect of preceding section. 3223 (amended). When tax on lost spirits is indemnified by insur ance. 3224. Suits to restrain assessment or collection of taxes prohibited. 3225 (amended). Suits to recover taxes collected under second assessment; burden of proof as to fraud, etc. 3226. Suits for recovery of taxes wrongfully collected. 3227. Limitation of suits for recovery of taxes wrongfully collected. 3217. Delinquent collectors; proceed-3228. Claims for refunding; limitation. ings by distraint. 3218. Collectors to be charged with what; due diligence. 3229. Compromises. 3230. Discontinuances of certain prosecutions. 3219. Death, etc., of collector; uncol- 3231. Continuances of cases. lected balances. 3220 (amended). Remission and refunding of taxes, penalties, etc. Canvass of districts for objects of taxation. SEC. 3172. [Amended by sec. 34, act of August 27, 1894 (28 Stat., 509); reenacted by sec. 16, act of September 8, 1916 (39 Stat., 756), and by sec. 1317, act of February 24, 1919 (40 Stat., 1057).] Every collector shall, from time to time, cause his deputies to proceed through every part of his district and inquire after and concerning all persons therein who are liable to pay any internal revenue tax, and all persons owning or having the care and management of any objects liable to pay any tax, and to make a list of such persons and enumerate said objects. The list referred to should be on Form 24 and should contain nothing but taxes which should be reported for assessment. The report of the deputy should be made so as to reach the collector on or before the 5th day of the month succeeding that for which the report is made. (Regulations No. 1, revised, p. 9.) Monthly visits of deputy to be discontinued. 2236.) (T. D. For requirements as to collectors' monthly or special assessment lists, see Sec. 3184, R. S. Instructions to collectors with reference to special-tax returns. (Circular No. 561, June 18, 1907; T. D. 92.) For methods employed in ascertaining names of persons liable to pay special taxes as rectifiers, wholesale liquor dealers, and retail liquor dealers, see T. D. 1782. SEC. 3173. [Amended by sec. 34, act of August 27, 1894 (28 Stat., 509), sec. 16, act of September 8, 1916 (39 Stat., 756), and sec. 1317, act of February 24, 1919 (40 Stat., 1057).] It shall be the duty of any person, partnership, firm, association, or corporation, made liable to any duty, special tax, or other tax imposed by law, when not otherwise provided for, (1) in case of a special tax, on or be Annual and other returns, See Sec. 3185, p. deputy collector fore the thirty-first day of July in each year, and (2) in other cases before the day on which the taxes accrue, to make a list or return, verified by oath, to the collector or a deputy collector of the district where located, of the when to be made. articles or objects, including the quantity of goods, wares, and merchandise, made or sold and charged with a tax, the several rates and aggregate amount, according to the *forms and regulations to be prescribed by the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, for which such person, partnership, firm, association, or corporation is liable: Provided, That if any person liable to pay any duty or tax, or owning, possessing, or having the care or management of property, goods, wares, and merchandise, article or objects liable to pay any duty, tax, or license, shall fail to make and exhibit a list or return required by law, but shall consent to disclose the particulars of any and all the property, goods, wares, and merchandise, articles, and objects liable to pay any duty or tax, or any business or occupation liable to pay any tax as aforesaid, then, and in that case, it shall be the duty of the collector or deputy collector to make such list or return, which, being When returns distinctly read, consented to, and signed and verified by must be made by oath by the person so owning, possessing, or having the or collector. care and management as aforesaid, may be received as the list of such person: Provided further, That in case no annual list or return has been rendered by such person to the collector or deputy collector as required by law, and the person shall be absent from his or her residence or place of business at the time the collector or a deputy collector shall call for the annual list or return, it shall be the duty of such collector or deputy collector to leave at such place of residence or business, with some one of suitable age and discretion, if such be present, otherwise to deposit in the nearest post office, a note or memorandum addressed to such person, requiring him or her to render to such collector or deputy collector the list or return required by law within ten days from the date of such note or memorandum, verified by oath. And if any person, on being notified or required as aforesaid, shall refuse or neglect to render such list or return within the time required as aforesaid, or whenever any person who lector of makis required to deliver a monthly or other return of objects subject to tax fails to do so at the time required, or delivers any return which, in the opinion of the collector, is erroneous, false, or fraudulent, or contains any under valuation or understatement, or refuses to allow any regularly authorized Government officer to examine the books of such person, firm, or corporation, it shall be lawful for the collector to summon such person, or any other person having possession, custody, or care of books of account containing entries relating to the business of Proceedings in case of absence. Cases of neg ing false returns. Summons produce books and testify. such person or any other person he may deem proper, to appear before him and produce such books at a time and place named in the summons, and to give testimony or answer interrogatories, under oath, respecting any objects or income liable to tax or the returns thereof. The to collector may summon any person residing or found within the State or Territory in which his district lies; and when the person intended to be summoned does not reside and can not be found within such State or Territory, he may enter any collection district where such person may be found and there make the examination herein authorized. And to this end he may there exercise all the authority which he might lawfully exercise in the district for which he was commissioned: Provided, That "person," as used in this section, shall be construed to include any corporation, joint-stock company or association, or insurance company when such construction is necessary to carry out its provisions. See section 23, act of October 22, 1914; sections 18, 19, act of September 8, 1916; sections 1002, 1004, act of October 3, 1917. Returns of taxes assessable under internal-revenue laws to be made in duplicate. (Cir. No. 140, Int. Rev. No. 548; T. D. 21801.) The returns (Form 11, revised) of special taxpayers must be made under oath or affirmation, whether covering the whole year or a fractional part of the year. (26 Int. Rev. Rec., 69, 89; T. D. 1782.) A person intending to engage in business for which special tax is required not required to himself sign and swear to the return (Form 11); such form may be executed by an agent holding a duly executed power of attorney. (Regulations No. 1, revised November, 1917, p. 11; T. D. 49 amended.) Return on Form 11 in the case of an unincorporated club, association, or copartnership may be signed and verified by a responsible or managing officer or member of the firm. (T. D. 1552.) A written request by a person liable to a special tax for information concerning such tax is not a disclosure of the particulars within the meaning of this section. (VI Comp. Dec., 760.) Request for prescribed blanks for making return is a disclosure. (VIII Comp. Dec., 663.) This section clothes collectors of internal revenue with supervisory power over and authorizes them to investigate all accounts, lists, or returns made or required to be made to them by any and all classes of persons liable to pay taxes upon any property, trade, or business. (United States v. Hodson, 14 Int. Rev. Rec., 100; Fed. Cas. No. 15376.) The collector is not authorized to require the production of the books of a corporation in which the taxpayer is a shareholder, such books in the meaning of that provision not being books relating to the trade or business of the shareholder. (Lee, assessor, v. Chadwick, 11 Int. Rev. Rec., 133; 1 Lowell, 439; Fed. Cas. No. 2570.) After the right of assessment has been lost a collector has no legal authority to require the production of a person's private books and papers for the purpose of ascertaining his liability to tax. (In the matter of O. H. P. Archer, 24 Int. Rev. Rec., 110; 9 Ben., 427; Fed. Cas. It was held that it is no defense that the answers of The examination of books under this section is not an infringement of the Constitution. (In re Strouse, 11 Int. Rev. Rec., 182; 1 Sawyer, 605; Fed. Cas. No. 13548.) Summons to produce books and attachment by court for refusal. (Lippman's case, 3 Ben., 95; 9 Int. Rev. Rec., 1; Landram v. United States, 16 Ct. Cls., 74, 85; In re Brown, 3 Int. Rev. Rec., 134; Fed. Cas. No. 1977.) Order to produce books is not violative of any constitutional right. (Calkins v. Smietanka, 240 Fed., 146.) Meaning of the words "objects charged with internalrevenue tax." (Wells, Fargo and Co. v. Shook, 8 Blatch., 254; Fed. Cas. No. 17406; In re Kinney, 102 Fed., 468.) The decision in Boyd v. United States, 116 U. S., 617, 32 Int. Rev. Rec., 62, was, in effect, that a compulsory production of a man's private papers, to be used as evidence against him in a proceeding to forfeit his property for alleged fraud against the revenue laws, is an "unreasonable search and seizure" within the meaning of the fourth amendment of the Constitution. Summons to produce books. (T. D. 993.) See act of June 22, 1874, relative to production of books, papers, etc., in suits other than criminal, page 644, Appendix. Unreasonable searches and seizures; seizure of corre spondence. (T. D. 1964.) Summons, form and manner SEC. 3174. Such summons shall in all cases be served by a deputy collector of the district where the person service of. to whom it is directed may be found, by an attested copy delivered to such person in hand, or left at his last and usual place of abode, allowing such person one day for each twenty-five miles he may be required to travel, computed from the place of service to the place of examination; and the certificate of service signed by such deputy shall be evidence of the facts it states on the hearing of an application for an attachment. When the summons requires the production of books, it shall be sufficient if such books are described with reasonable certainty. of Failure to obey ceedings on. In re Becker, Fed. Cas. No. 1208; 21 Int. Rev. Rec., 243. SEC. 3175. Whenever any person summoned under the two preceding sections neglects or refuses to obey such summons, prosummons, or to give testimony, or to answer interrogatories as required, the collectors may apply to the judge of the district court or to a commissioner of the circuit court of the United States for the district within which the person so summoned resides for an attachment against him as for a contempt. It shall be the duty of the judge or commissioner to hear the application, and, if satisfactory proof is made, to issue an attachment, directed to some proper officer, for the arrest of such person, and upon his being brought before him to proceed to a hearing of the case; and upon such hearing the judge or commissioner shall have power to make such order as he shall deem proper not inconsistent with is filed. existing laws for the punishment of contempts, to enforce obedience to the requirements of the summons and to punish such person for his default or disobedience. Penalty for failure to obey summons. (Sec. 3179, p. 111.) The judge may issue a rule to show cause why an attachment should not issue. The application of the collector in these cases is a proceeding in a civil cause, and may be amended. (Lee, assessor, v. Chadwick, 11 Int. Rev. Rec., 133; Fed. Cas. No. 2570.) In the matter of Oliver H. P. Archer, Judge Blatchford denied a collector's application for a writ of attachment, as the Commissioner was barred by the 15 months' limitation in section 3182 from assessing. (24 Int. Rev. Rec., 110; 9 Ben., 427; Fed. Cas. No. 506.) SEC. 3176. [Amended by sec. 34, act of August 27, 1894 (28 Stat., 509), sec. II (1), act of October 3, 1913 (38 Stat., 114, 177), sec. 16, act of September 8, 1916 (39 Stat., 756), and sec. 1317, act of February 24, 1919 (40 Proceedings Stat., 1057).] If any person, corporation, company, or aswhere no return sociation fails to make and file a return or list at the time prescribed by law or by regulation made under authority of law, or makes, willfully or otherwise, a false or fraudulent return or list, the collector or deputy collector shall make the return or list from his own knowledge and from such information as he can obtain through testimony or otherwise. In any such case the Commissioner may, from his own knowledge and from such information as he can obtain through testimony or otherwise, make a return or amend any return made by a collector or deputy collector. Any return or list so made and subscribed by the Commissioner, or by a collector or deputy collector and approved by the Commissioner, shall be of prima facie good and sufficient for all legal purposes. Extension time. penalty. If the failure to file a return or list is due to sickness or absence, the collector may allow such further time, not exceeding thirty days, for making and filing the return or list as he deems proper. The Commissioner of Internal Revenue shall determine and assess all taxes, other than stamp taxes, as to which returns or lists are so made under the provisions of this section. In case of any failure to make and file a return or list within the time prescribed by law, or pre25 per cent scribed by the Commissioner of Internal Revenue or the collector in pursuance of law, the Commissioner of Internal Revenue shall add to the tax 25 per centum of its amount, except that when a return is filed after such time and it is shown that the failure to file it was due to a reasonable cause and not to willful neglect, no such addition shall be made to the tax. In case a false or fraudulent return or list is willfully made, the Commis50 per cent sioner of Internal Revenue shall add to the tax 50 per centum of its amount. penalty. When penalties collectible. The amount so added to any tax shall be collected at the same time and in the same manner and as part of |