making his affidavit thereon, and treating the schedule in all respects as if made by a deputy.

Collectors or deputy collectors using Form 53 will state, in a concise but clear manner, the reason for non-collection under the head of Cause of inability to collect." For example, 'Insolvent before demand could be legally made." "Died before receipt of list, and estate insolvent.' "Left for parts unknown before the tax could be collected." "No property liable to seizure under the law." Property would not pay expense of distraint."

Claims to be Scheduled on Form 48.

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At intervals of not less than one month, all taxes claimed to be uncollectible, either from error or insolvency, will be put into a single schedule on new Form 48, grouped under captions designating the lists to which they belong, whether annual or monthly, or on Form 58 or 60. The natural order of the months should be strictly observed. The captions should be written in red ink across the center of the schedule.The amount claimed should be placed only in the column headed "Amount claimed." The other two columns, ruled for dollars and cents, must be left blank. Each schedule must be verified by the certificate of the assessor and collector, and accompanied, in all cases, by affidavits on Form 47 or 53.

Affidavits should be numbered by collectors to correspond to the claims in the schedule supported by them. Those covering several claims should be marked on their backs with the number of those claims.

Duplicates should be kept by collectors, without fail, of all schedules transmitted to this office. These in connection with proper check marks placed upon the lists, will prevent duplicate applications for the abatement of the same tax. Before transmitting any schedule the collector should compare it with his lists, and check on the lists each claim contained in the schedule, with intelligible abbreviations, showing the date of the application, and its nature, whether for insolvency or for error, and when notice of action is received, checks should be applied to the lists, showing the nature and date of such action in each case. In designating page and line, the collector and the assessor will each have reference to the pages and lines of the lists as found in his own office. Numbering the schedules and the claims contained in them should be carefully attended to for convenience of reference The schedules presented under these regulations will be numbered in continuation of those presented under Circular 21; and all claims presented to the office at one time should be numbered as on one schedule, and the claims in each will be numbered from one to the last in that schedule

Refunding of Taxes Improperly Collected.

Claims for refunding must be made on blank Form 46, verified by

affidavits and certificates of the assistant assessor, assessor and collector.

The collector must certify to the date of payment of the amount claimed. Claims for refunding should not be entered in schedules, and may be presented as often as desired; but unless they are presented to the proper revenue officers within six months from the date of the payment of the tax, the Commissioner will not be bound to investigate them, and may refer the claimants to their remedy at law.

The post office address of parties making claims for refunding must be given; otherwise, the claims cannot be paid if allowed.

Whenever any person who has taken out a license presents a claim for the refunding of the amount during the period for which the license was issued, the collector, before signing his certificate to the claim, will require the claimant to deposit the license with him, or to furnish proof that it has been destroyed. If it should be decided that the tax cannot be refunded, the license will be returned.

General Remarks.

If any claim on Form 46 or 47 is presented without the certificate of the assistant assessor, the reason for the omission must be given.

If in any case, after a full investigation, the assessor and collector, either or both, cannot certify to the facts set forth in the affidavits, they should state the reason for their dissent, and allow the party to corroborate his statements by such other proof as he may be able to furnish. Members of firms making affidavits must swear, each for himself, to the fact set forth, including that of membership, and subscribe his own name and not that of the firm.

Affidavits may be made before any internal revenue officer, or before the chief clerk of an assessor, without fee or stamp; but when made before the chief clerk it must be accompanied by the assessor's or collector's certificate, verifying the chief clerkship, and the absence of the assessor at the time. Any other person administering an oath or affirmation must show, by seal or certificate from the proper authority, that he is qualified to do so, and the affidavit and certificate must each be stamped.

Credits should not be taken by collectors for taxes supposed to be uncollectible until notice of abatement is received from the Commissioner. When taxes are abated the amounts are at once credited to collectors upon the books of this office, and schedules of the same are sent to them, with authority to take credit for the sums abated in their next quarterly accounts.

When credit is given on account of insolvent or absconding persons, although the collector is thereby released from the obligation created by receipting for the amount credited, the obligation to pay still remains upon the assessed parties. Collectors should bear this fact in mind, and not consider themselves as released from obligation to collect in such cases whenever it shall be in their power. If, pending action for abate

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ment of an erroneous assessment, the tax should be collected, the collector, upon receiving an order abating the same, will return the amount to the assessor on Form 58, and will make an affidavit on Form 46, giving the date of payment, and naming the assessment list, upon which it is returned a second time, and have it properly certified to by the assessor and assistant assessor, when a draft for the amount will be drawn in favor of the party. If a claim for an uncollectible tax should be paid pending action, or after it has been abated, it should be returned as above on Form 58.

Schedules of all taxes abated, refunded, or allowed as uncollectible, will be sent to assessors to be kept on file for public inspection.

Regulations concerning the Disposition of Moneys paid to Collectors after Judgment, and on Compromises.

TREASURY DEPARTMENT, Office of Internal Revenue, }

Washington, January 20, 1866.

The following Regulations are issued as supplementary to those of the Secretary of the Treasury of June 20 and June 27, 1865, "for the guidance of collectors under the provisions of the 19th, 44th, and 179th sections of the act of June 30, 1864," in order to correct some practical errors of account in the disposition of moneys paid to collectors after judgment recovered in court, or upon compromises.

It is believed that all cases of the kind alluded to are embraced in one or the other of the three classes described below, and collectors are instructed to dispose of the moneys in each of the cases named as hereinafter directed, viz:

1st. When proceedings are instituted for forfeiture or for the recovery of penalties, and the case is prosecuted to final judgment in

court.

The law requires the portions of all fines, penalties, and forfeitures belonging to the Government to be paid to the collector, and when any such payment is made to him by order of court, he will deposit the amount immediately to the credit of the Treasurer of the United States, with his other collections, enter it upon his abstract of collections for the current month, (against No. 288,) and return it to the assessor on Form 58, that it may be included in the monthly list.

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2d. When a delinquent tax-payer proposes, after an investigation of his business by a revenue officer, to pay the tax found due, with the assessed penalty and a certain sum in lieu of penalties and forfeitures.

In cases of this kind, the assessor should determine the amount of the tax and the assessed penalty, and return the same to the collector

on a special or monthly list, as in the case of other assessments. When these amounts are paid to the collector he will enter them upon his cash book, and also upon his abstract, like other collections.

The amount of the tax and assessed penalty will not be deposited to the credit of the Secretary of the Treasury, but the amount paid in lieu of fines, penalties, and forfeitures should be so deposited, to await his final award and distribution. When the award is made, the Secretary will issue a draft in favor of the informer, if any, for his moiety, and another draft in favor of the collector for the moiety belonging to the Government. The collector will deposit this draft to the credit of the Treasurer of the United States, with his other collections, and enter the amount in his cash book, in his abstract, (against No. 289,) and on Form 58, as directed in the case of moneys paid to him by order of court. 3d. When a delinquent tax-payer, liable to prosecution for fines, penalties, and forfeitures, deposits with the collector a gross sum, either prior to or pending an investigation, in order to avoid seizure, or to release his property from seizure.

There may be occasionally a case in which the circumstances will appear to justify a proceeding of this sort, though obviously such cases will and should be rare. When, however, the circumstances are such as seemingly to justify the collector in accepting a gross sum for taxes and penalties as a condition of refraining from or releasing a seizure, so that the business of the delinquent may go on, he will deposit the entire amount received to the credit of the Secretary of the Treasury.

The case will be investigated by the assessor of the district, who will determine the amount of tax due, and the assessed penalty, if any. He will transmit the assessment to the collector on a special or monthly list, as in the case of other assessments. On the receipt of such list the collector will report the amount of the assessment to the Commissioner, to whom the several proceedings in the case should be promptly reported from time to time, as they are taken.

When the case is finally determined by the Secretary of the Treasury he will distribute the deposit as follows:

One draft in favor of the collector for the tax and assessed penalties. This will be applied to the payment of the assessement, and the proper entries made in the cash book and abstract.

One draft in favor of the collector for the moiety of the penalty belonging to the Government. The amount of this draft will be entered

in the cash book, abstract, (against No. 289,) and on Form 58, as directed in the case of moneys deposited by order of court.

One draft in favor of the informer, if any, for his moiety of the penalty, accepted in lieu of fines, penalties, and forfeitures.

If the amount deposited should be in excess of all the taxes and penalties accepted, the excess will be refunded to the delinquent by draft from the Secretary.

It will be obvious to collectors, from the foregoing regulations, that while moneys paid in the 2d and 3d cases remain on deposit to the credit

of the Secretary of the Treasury, they should not be reported in Form 22, nor should they be included in receipts on form 231.

In transmitting to the Secretary the original certificate of deposit to the credit of the Secretary of the Treasury on account of fines, penalties, or forfeitures, collectors will be careful to distinguish both on the face of the certificate of deposit and on form 43, accompanying it, the name of each offender, and the particular amount of fine, penalty, or forfeiture received from him.

E. A. ROLLINS, Commissioner.

Decision Relative to the Mode of Determining "Increased Values" under Sections 94 and 95, and the Persons Liable for the Tax to be Assessed thereon.

TREASURY DEPARTMENT, Office of Internal Revenue,
Washington, November 9, 1865.

The 95th section of the act of June 30, 1864, provides: That whenever a manufactured article on which an excise or impost duty has been paid is increased in value, or more completely fitted for use or sale by being polished, painted, varnished, waxed, oiled, gilded, electrotyped, galvanized, plated, &c., &c., the tax is to be levied, collected, and paid upon the amount of such increased value.

The conditions stated in the section authorizing this mode of assessing the tax are: 1. The article must be a manufactured article; 2. An impost or excise duty must have been previously paid thereon; 3. The article must be one not specially provided for under any other section of the law; and, 4. The original character or purpose for which the article was intended to be used must not be changed. When all of these conditions concur, the tax is properly assessed on the increased value. If one or more of these conditions are wanting, if the article is not a manufactured article, or if no tax has been paid upon it, or if it is specially provided for otherwise, or if the original character or purpose for which it was intended to be used is changed, it cannot properly be taxed under section 95 on increased value.

The law itself points out the mode of ascertaining the increased value for all purposes of this section. It declares that the amount of such increased value is to be ascertained by deducting from the value of the finished article when sold, or removed for sale, delivery, or consumption, the cost or value of the original article to the person, firm or company liable to the duty imposed upon the increased value thereof.

Take an example: A. buys an unfinished article for which he pays $3; more completely finishes and fits it for use or sale, by any of the processes enumerated in section 95, at a cost of $2.50; adds a profit of twenty-five per cent., ($1.38,) and sells the article for $6.88.

Now, with the rule given above, this problem is one of very easy solution. Deducting from the price of the finished article when sold ($6.88,) the cost of the original article, ($3,) we have $3.88, the “increased value," on which a tax of 5 per cent. is to be assessed and paid.