INTRODUCTION. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, To Officers of Internal Revenue and Others: The within decisions of the Commissioner of Internal Revenue, rendered during the calendar year 1923, upon the construction to be given to the various acts of Congress relating to the internal revenue and to the enforcement of prohibition, are published for the information and guidance of officers of the internal revenue and others concerned. This volume contains Treasury Decisions numbered 3421 to 3541, inclusive, and embraces all regulations and rulings of the Treasury Department made during the calendar year ended December 31, 1923. D. H. BLAIR, Commissioner of Internal Revenue. INTERNAL REVENUE. (T. D. 3421.) Payment of income and profits taxes. Instructions as to acceptance of Treasury certificates of indebtedness for income and profits taxes, calendar year 1923. TREASURY Department, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C. To Collectors of Internal Revenue and Others Concerned: 1. Collectors of internal revenue are authorized and directed to receive at par United States Treasury certificates of indebtedness of Series TM-1923, dated March 15, 1922, and Series TM2-1923, dated December 15, 1922, both maturing March 15, 1923, in payment of income and profits taxes payable on March 15, 1923. Collectors are authorized and directed to receive at par Treasury certificates of indebtedness of Series TJ-1923, dated June 15, 1922, maturing June 15, 1923, in payment of income and profits taxes payable on June 15, 1923; Treasury certificates of indebtedness of Series TS-1923, dated September 15, 1922, maturing September 15, 1923, in payment of income and profits taxes payable on September 15, 1923; and Treasury certificates of indebtedness of Series TD-1923, dated December 15, 1922, maturing December 15, 1923, in payment of income and profits taxes payable on December 15, 1923. Collectors are further authorized and directed to receive at par, in payment of income and profits taxes payable at the maturity of the certificates, respectively, Treasury certificates of indebtedness of any other series which may be issued maturing on March 15, June 15, September 15, or December 15, 1923, respectively, and expressed to be acceptable in payment of income and profits taxes. Collectors are not authorized hereunder to receive in payment of income or profits taxes any Treasury certificates of indebtedness not expressed to be acceptable in payment of income and profits taxes, nor any Treasury certificates maturing on a date other than the date on which the taxes are payable. Collectors are authorized to receive Treasury certificates of indebtedness which are acceptable as herein provided in payment of income and profits taxes, in advance of the respective dates on which the certificates mature. Treasury certificates acceptable in payment of income and profits taxes have one or more 29311°-23-VOL 25- -1 1 interest coupons attached, including as to each series a coupon payable at the maturity of the certificates, but all interest coupons must in each case be detached by the taxpayer before presentation to the collector, and collected in ordinary course when due. The amount, at par, of the Treasury certificates of indebtedness presented by any taxpayer in payment of income and profits taxes must not exceed the amount of the taxes to be paid by him, and collectors shall in no case pay interest on the certificates or accept them for an amount other or greater than their face value. 2. Deposits of Treasury certificates of indebtedness received in payment of income and profits taxes must be made by collectors, unless otherwise specifically instructed by the Secretary of the Treasury, with the Federal reserve bank of the district in which the collector's head office is located, or in case such head office is located in the same city with a branch Federal reserve bank, with such branch Federal reserve bank. Specific instructions may be given to collectors by the Secretary of the Treasury in certain instances for the deposit of the certificates with Federal reserve banks of other districts and branch Federal reserve banks. The term "Federal reserve bank" where it appears herein, unless otherwise indicated by the context, includes branch Federal reserve banks. Treasury certificates accepted by the collector prior to the dates when the certificates respectively mature should be forwarded by the collector to the Federal reserve bank to be held for account of the collector until the date of maturity and for deposit on such date. 3. Collectors of internal revenue are not authorized, unless express instructions otherwise are given by the Secretary of the Treasury to receive in payment of income or profits taxes interim receipts issued by Federal reserve banks in lieu of definitive certificates of the series herein described. 4. Certificates of indebtedness should in all cases be indelibly stamped on the face thereof as follows by the collector, and when so stamped should be delivered to the Federal reserve bank in person if the collector is located in the same city, and in all other cases forwarded by registered mail uninsured: 192 This certificate has been accepted in payment of income and profits taxes and will not be redeemed by the United States except for credit of the undersigned. 5. Collectors should make in tabular form a schedule in duplicate of the certificates of indebtedness to be forwarded to the Federal reserve bank, showing the serial number of each certificate, the date of issue and maturity, with serial designation, and face value. Cer $.. tificates of indebtedness accepted prior to the date of maturity must be scheduled separately. At the bottom of each schedule there should be written or stamped "Income and Profits Taxes ," which amount must agree with the total shown on the schedule. One copy of this schedule must accompany certificates sent to the Federal reserve bank and the other be retained by the collector. The income and profits taxes deposits resulting from the deposits of such certificates must in all cases be shown on the face of the certificate of deposit (National Bank Form 15) separate and distinct from the item of miscellaneous internal revenue collections (formerly called Ordinary). Until certificates of deposit are received from the Federal reserve banks the amounts represented by the certificates of indebtedness forwarded for deposit must be carried by collectors as cash on hand or in banks and not credited as collections, as the dates of certificates of deposit determine the dates of collections. 6. For the purpose of saving taxpayers the expense of transmitting such certificates as are held in Federal reserve cities or Federal reserve branch bank cities to the office of the collector in whose district the taxes are payable, taxpayers desiring to pay income and profits taxes by such Treasury certificates of indebtedness acceptable in payment of taxes should communicate with the collector of the district in which the taxes are payable and request from him authority to deposit such certificates with the Federal reserve bank in the city in which the certificates are held. Collectors are authorized to permit deposits of Treasury certificates of indebtedness in any Federal reserve bank with the distinct understanding that the Federal reserve bank is to issue a certificate of deposit in the collector's name covering the amount of the certificates of indebtedness at par and to state on the face of the certificate of deposit that the amount represented thereby is in payment of income and profits taxes. The Federal reserve bank should forward the original certificate of deposit to the Treasurer of the United States, with its daily transcript, and transmit to the collector the duplicate and triplicate, accompanied by a statement giving the name of the taxpayer for whom the payment is made in order that the collector may make the necessary record and forward the duplicate to the office of the Commissioner of Internal Revenue. 7. This Treasury decision amends and supplements the provisions of articles 1731 and 1732 of Regulations No. 62 (1922 edition) and supersedes T. D. 3280. Approved January 2, 1923: A. W. MELLON, D. H. BLAIR, Commissioner of Internal Revenue. Secretary of the Treasury. |