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“The new law gave taxpayers an additional sixty days within which to determine whether they desired to go to the Board of Tax Appeals, and thereafter an additional thirty days was given by the board's rules for getting the case at issue. As the result of the necessary delay in getting cases at issue and the unfamiliarity of all, both within the Bureau of Internal Revenue and among taxpayers generally with the new law, the number of cases on the board's dockets have not yet necessitated the appointment of additional members within the maximum of 28 authorized under the law. The board is functioning satisfactorily, and at present is keeping up to date with its calendar. The experiment is one which is yet too new to provide a basis for comment, and the board should be permitted to continue along the lines indicated by the Congress without further amendment to the law until it has an opportunity to demonstrate its value to the taxpayer and to the government." 3 3. Activities

The board, formed in three divisions for administrative purposes, sits on each office day, except Fridays and Saturdays, to hear appeals which have been called from the day calendar, at 9:30 a. m. of each day, and assigned to the respective divisions by the chairman.

The board functions very much in the manner of a court. Its hearings are open to the public, and its reports are public records, open to the inspection of the public. 4. Organization

Under the provisions of the act, the President may appoint such number of members, not more than 28, as he determines to be necessary to serve for a period of two years after the enactment of the act. The terms of office of all members expire at the end of such two-year period, when seven members may be appointed for terms which shall expire, two at the end of the fourth year, two at the end of the sixth year, two at the end of the eighth year, and one at the end of the tenth year after the expiration of such two-year period. The terms of office of each of their successors shall expire at the end of the tenth year after the expiration of their predecessors' terms.

The twelve members originally appointed, of which one is the chairman, constitute the present board. There is also a secretary.

The principal office of the board is at Washington, but provision has been made for hearings at certain points within the United States, with a view to

, securing reasonable opportunity to taxpayers to appear before the board or any of its divisions with as little inconvenience and expense as is practicable. 5. Publications

(a) The reports of the board are published at the Government Printing Office, and such authorized publication, under the act, becomes competent evidence thereof in all courts of the United States and of the several states, without any further proof or authentication thereof. Such reports are known as “United States Board of Tax Appeals Reports," and are obtainable from the Superintend

3 Annual Report, Secretary of the Treasury, 1924, pp. 15, 16.

ent of Documents, United States Government Printing Office, Washington, D. C. Regular subscription may be entered for these reports with the Secretary of the Board, Investment Building, Washington, D. C., upon remittance of postal money order for $1.50, which will pay for 1,600 pages of the reports, and when 1,600 pages have been received a' further like remittance must be made to continue the service.

(b) Free Price List No. 37 of Government Publications on Taxation, obtainable from Superintendent of Documents, Government Printing Office, Washington, D. C.

6. Rules of Practice Before the United States Board of Tax Appeals

Rule 1. Business Hours.—The office of the board at Washington, D. C., will be open each business day from 9 o'clock a. m., to 4:30 o'clock p. m.

Rule 2. Admission to Practice.-A register of persons entitled to practice before the board will be maintained by the board, in which will be entered the names of all such persons. Firms will not be admitted or recognized.

The following classes of persons whom the board finds, upon consideration of their applications, to be of good moral character and to possess the requisite qualifications to represent others, may be admitted to practice before the board:

(a) Attorneys at law who are admitted to practice before the Supreme Court of the United States, or the highest court of any state or territory or the District of Columbia.

(b) Certified public accountants duly qualified under the law of any state or territory or the District of Columbia.

An application under oath for admission to practice shall be addressed to the United States Board of Tax Appeals, Washington, D. C., and must state the name, residence address, and business address of the applicant, and the time and place of his admission to the bar or qualification as a certified public accountant. Such application shall also state whether the applicant has ever been suspended or disbarred as an attorney in any court, or his right to practice as a certified public accountant suspended or revoked in any jurisdiction. Such application shall be accompanied by a certificate of the clerk of the court in which the applicant is admitted to practice to the effect that he has been so admitted and is in good standing, or a certificate by the proper state, territorial, or District authority to the effect that the applicant is a certified public accountant in good standing, duly qualified and entitled to practice in such state or territory or the District of Columbia.

The board may, in its discretion, deny admission, suspend, or disbar any person who it finds does not possess the requisite qualifications to represent others, or is lacking in character, integrity, or proper professional conduct. An attorney or certified public accountant who has been admitted to practice may be disbarred only after he is afforded an opportunity to be heard.

The board shall have the right at any time to require 'a statement, under oath, of the terms and circumstances of any contract of employment of an attorney or certified public accountant with the taxpayer he represents. Any individual taxpayer or member of a taxpayer partnership or officer or a taxpayer corporation may appear for himself or such partnership or corporation upon adequate identification to the board.

Rule 5. Initiation of AppealPetition.An appeal shall be initiated by the filing with the board of a petition. The petition shall contain:

(a) A caption in substantially the following form:

United States Board of Tax Appeals.

Appeal of


Docket No.

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Petition. (b) Proper allegations showing jurisdiction in the board.

(c) A statement of the amount of the deficiency, the nature of the tax, the year for which asserted, and the amount thereof (as nearly as may be determined) in controversy.

(d) Clear and concise assignments of error alleged by the taxpayer to have been committed by the Commissioner of Internal Revenue in determining the tax liability of the petitioner; such assignments of error shall be numbered.

(e) A clear and concise statement of the facts upon which the taxpayer relies as constituting the basis of his appeal.

(f) A statement of the propositions of law involved. (g) A verification by the taxpayer.

The petition shall be complete in itself, so as fully to inform the board of the issues to be presented.

To the petition shall be appended a copy of the Commissioner's letter advising the taxpayer of the determination of the deficiency (the so-called “sixty-day letter").

Rule 6. Filing of Petition.-Five clear copies of the petition, either printed or typewritten as provided in rule 27, shall be filed. The original shall be signed by the taxpayer, or his counsel, and duly verified by the taxpayer. Signature of counsel shall be in individual and not in firm name. The filed copies of the petition shall conform to the original.

The appeal is filed when the petition is received by the board.

Rule 7. Service on the Commissioner of Internal Revenue.—The board, upon the receipt of the petition, will serve one copy thereof upon the Commissioner of Internal Revenue forthwith.

Rule 8. Docket.—Upon receipt of the petition by the board the appeal will be entered on the docket and assigned a number and the taxpayer or his representative notified thereof. This number shall appear upon all papers thereafter filed in the case.

Rule 9. Answer.--After service upon him of the petition, the Commissioner shall have 20 days within which to file an answer or to move in respect of the petition. The answer shall be so drawn as fully and completely to advise the taxpayer and the board of the nature of the defense. It shall admit or deny each material allegation of fact contained in the petition and set forth any new matters of fact and propositions of law upon which the Commissioner relies. Five

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copies of the answer shall be filed, of which the original shall be signed by the Commissioner or his counsel and the copies conformed.

Rule 10. Service of Answer.–Upon the filing of the answer the board will serve one copy thereof on the taxpayer or his counsel by registered mail, and the return post office receipt for said answer shall be proof of the service of the same.

Rule 11. Joinder of Issue. The appeal shall be regarded as at issue upon the filing of the answer.

Rule 12. Extensions of Time.-Continuances, extensions of time, and adjournments may be ordered by the board on its own motion and may be granted by it in its discretion on motion of either party filed in writing and stating the reasons therefor.

Rule 13. Amended and Supplemental Pleadings.Amended and supplemental pleadings may be filed only upon leave granted.

Rule 15. Calendar.a) Formation of Calendar.—All appeals will be placed upon the calendar in the order in which they are at issue, and such appeals shall stand for hearing and submission in that order upon notice as hereinafter provided in this rule: Provided, the board, on its own motion or on motion of either party, after due notice thereof, may advance the hearing of appeals whenever considerations of public policy make such action appear desirable.

(b) Notice of Hearing. When an appeal is placed on the calendar, the board will give written notice of such fact by mail to all parties. Subsequent notice as to probable date of hearing will be given to all parties by the board, by mail or telegram, at least 15 days in advance of the date specified in such notice.

(c) Dismissal for Nonprosecution.—The board may at any time after the joinder of issue, upon motion of either party or upon its own motion, order any appeal to be brought on for hearing, and may dismiss the same for nonprosecution if, when the appeal is called, the taxpayer does not show cause against such dismissal. The provisions for dismissal in cases of appeals coming on for hearing in regular course are contained in rule 18.

Rule 16. Assignments of Hearings.— The assignments of appeals for hearing shall be made by the chairman on each day of session for hearing on that day. Such assignments may be made without regard to the numerical arrangement of the appeals on the calendar.

Rule 17. Hearings.-(a) Sessions.—The board will convene at 10 o'clock a. m. on each hearing day.

(b) Times and Places of Hearings.—Hearings will be held at such times and places as may from time to time be fixed by the chairman.

Rule 18. Submission Without Argument.-An appeal in which issue has been joined and in which no issue of fact is raised, or a contested motion not predicated upon an issue of fact, in which both parties are not present in person or by counsel at the time it is called for hearing, will be regarded as submitted on the part of the absent party or parties. Where there is a joinder of issue on questions of fact the provisions of this rule relative to submission without argument shall not relieve the party upon whom rests the burden of proof, of adducing at the hearing proper evidence in support of his contention. Pleadings do not constitute evidence and where issues of fact are joined, failure to adduce supporting evidence will be taken as ground for dismissal.

Rule 20. Burden of Proof.-Upon hearing of appeals the taxpayer shall open and close and the burden of proof shall be upon him.

Rule 21. Motions.—Motions must be in writing and five copies filed with the board. The board will serve one copy thereof upon the adverse party. Motions consented to or which indicate by indorsement thereon that they are not objected to by the opposite party may be acted upon by the chairman. Contested motions may be acted upon by the chairman or they may be referred by him to the board or to a division or a member of the board.

Rule 25. Briefs.Briefs shall conform in size and style to the provisions of rule 27. If typewritten, 5 copies shall be filed; if printed, 20 copies.

A brief filed by a taxpayer shall contain, in the order here stated

(a) A statement of the nature of the tax and how the appeal comes before the board.

(b) A concise statement of the facts.
(c) A concise statement of the points upon which the taxpayer relies.
(d) The argument.

A brief for the Commissioner of Internal Revenue shall be in similar form, except that no statement of the nature of the tax or how the appeal comes before the board shall be required, and no statement of facts unless that presented by the taxpayer is controverted.

Every brief of more than 20 pages shall contain on its front flyleaves a table of contents with page references, supplemented by a list of all cases referred to, alphabetically arranged, together with references to pages where the cases are cited.

One copy of each brief filed will be delivered by the board to the opposite party.

Rule 26. Findings of Fact.At the conclusion of the hearing of an appeal before the board, or a division thereof, both parties shall present to the board, or the division before which such appeal was heard, proposed findings of fact.

Such proposed findings of fact shall contain a statement of the findings desired in the form of distinct numbered propositions of the facts which it is desired be found, and each proposition must be so prepared with respect to its length, subject-matter, and phraseology that the board, or a division thereof, may conveniently pass upon it, and they must be so arranged as to present a concise statement in orderly and logical sequence of the whole case as it is desired to have it appear in the findings of fact.

Five copies of such proposed findings shall be filed with the board.

Upon the filing of the proposed findings of fact notice of such filing, together with a copy of the proposed findings of each party, will be served upon the opposite party by the board. Within five days after the receipt of such notice of filing of proposed findings each party may file objections to the proposed findings wherein he shall point out specifically such objections to such proposed findings, or any part thereof, as he may desire; at the time of filing such objections either party may request such additional findings as he may desire to have appear in the findings of fact.

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