In each particular case of this kind, therefore, notice should be given that hereafter for any neglect or failure to make such return, without the excuse of "sickness or absence" (the only excuse provided for by section 3176, Revised Statutes), the 50 per cent penalty must be assessed and collected.

General notice hereof should also be given by collectors for the information of the public. N. B. SCOTT, Commissioner.

(20030.)

Fifty per cent penalty.

Claim may be made on Form No. 46 for refund where parties liable under the act of June 13, 1898, failed to make return through ignorance of the requirements of law and regulations.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., September 10, 1898.

SIR: In reply to yours of the 5th instant, you are informed that where parties whose liability to special tax accrued under the act of June 13, 1898, failed through ignorance of the requirements of the law and regulations to make a sworn return, and in consequence were required to pay the 50 per cent penalty, such parties may make claims on Form 46 for the refunding of the penalties paid.

Respectfully, yours,

Mr. FRANK MCCORD,

G. W. WILSON, Acting Commissioner.

Collector Eighteenth District, Cleveland, Ohio.

(20120.)

Fifty per cent penalty.

The circular letter dated September 3, 1898, directing collectors to report for assessment without the 50 per cent penalty those cases arising under the war-revenue act in which returns had not been made by taxpayers within the time prescribed, applies only to cases in which the taxpayers had already (prior to the issuance of that letter) failed to make sworn return before the expiration of the calendar month in which their liability began. Cases of such failure occurring in the month of September, 1898, or thereafter, must be reported for assessment of the tax due and 50 per cent additional.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., September 30, 1898. SIR: In reply to a letter of the 17th instant from Revenue Agent Winne, then on duty with you, you are hereby advised that his understanding of the circular letter to collectors of September 3, 1898, is correct, namely, that it is intended to direct collectors to report for

assessment without the 50 per cent penalty only those cases in which the taxpayers had already failed to make the sworn return required by the law before the expiration of the calendar month in which their liability began.

As full notice has since been given, through publications in the newspapers of the country, of the requirement of the law that sworn return of special-tax liability shall be rendered to the collector within the calendar month in which such liability began, persons who become liable for the tax only in the month of September do not come within the meaning and intent of the circular if they fail to make return before the expiration of this month, and all such cases should accordingly be reported by the collector to this office for assessment of the special tax and 50 per cent penalty, unless the excuse of "sickness or absence" provided for by the terms of section 3176, Revised Statutes, is presented, or unless the facts with regard to the special tax payer's business were disclosed to the collector or deputy in time for the presentation of the Form 11 to the special tax payer for his signature and oath before the end of the month. (Sec. 3173, Rev. Stat.)

Respectfully, yours,

N. B. SCOTT, Commissioner. Mr. JAMES W. MCGINNIS, Revenue Agent, Philadelphia, Pa.

(20197.)

Fifty per cent penalty.

Explanation of circular letter of September 3, 1898.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., October 14, 1898.

SIR: In your letter of the 11th instant, relating to cases reported by Revenue Agent Trowbridge, involving persons in your district in special-tax liability and penalty, you state your understanding of Treas ury decision 20120 (explaining the circular letter of September 3, 1898) to be that you are "to report for assessment, without the 50 per cent penalty, those cases in which liability began in July and August, in which the taxpayers had already failed to make return.

This understanding of the decision is correct so far only as concerns such of these special tax payers as, upon receiving the notice of the necessity of a sworn return, conveyed by the circular letter and by the general publication of its tenor in the newspapers, at once thereafter made their return (having had no prior notice).

It is not intended to extend to such of them as have allowed the entire month of September to pass by without making their returns. In all such cases the 50 per cent penalty must be exacted.

Respectfully, yours,

.N. B. SCOTT, Commissioner. Mr. B. F. PARLETT, Collector Internal Revenue, Baltimore, Md.

(20230.)

Special-tax return-Time of payment.

Every special tax payer making sworn return, Form 11, within the calendar month when his liability began, thereby escaping 50 per cent penalty, must pay the tax not later than the last day of that month. If he postpones payment to a later period, he becomes liable to criminal prosecution, and should be reported to the United States district attorney accordingly.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., October 19, 1898.

SIR: Your letter of the 11th instant has been received, referring to a report made by Revenue Agent Yates with reference to Mr. M. Finkle, lessee and manager of the Arch Street Theater, Philadelphia, who had not, at the time of the visit of the revenue agent, made return or paid special tax for his theater, which "was opened October 1." You state that on the 10th instant the lessee, Mr. Finkle, called at your office and made return of his liability to special tax from October 1, 1898, on Form 11. It appears, however, that he did not at that time pay the special tax, but stated "that he would then make return of the tax and pay the same before the end of the month." Your deputy collector should be instructed to see that he does so, and to inform him that if he should allow the month of October to go by without the payment of the special tax he would at once thereafter become liable to criminal prosecution. The ruling of this office on this point has been published for many years, and you will find it in 25 Internal Revenue Record, on page 237, in the letter to Mr. John M. Sullivan, collector of the twenty-third district of Pennsylvania.

You say:

It has been the general practice in this district when persons or firms make return of their liability to special tax during the month in which they begin business to take no further action until the assessment is made on the basis of the return.

If each person or firm after having made the special-tax return (Form 11) also pays the tax not later than the last day of the calendar month in which the liability began, there is no assessment to be made, as the stamp must be issued at once on the date of the receipt of the money.

Special tax payers must not be permitted, after having made their return, to postpone payment of the special tax to another calendar month. This is imperative, and you will give your deputies positive instructions on this point.

Respectfully, yours, G. W. WILSON, Acting Commissioner. Mr. P. A. MCCLAIN, Collector First District, Philadelphia, Pa.

TELEGRAPH AND TELEPHONE COMPANIES, ETC.

(19649.)

Concerning the use of telegraph.

[Circular No. 129-Int. Rev. No. 500.]

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., July 7, 1898.

Numerous inquiries having reached this office as to whether or not telegraphic messages dispatched by officers and employees of the Government on official business are required to be stamped under the provision of the act of June 13, 1898, it is deemed advisable to call attention to the fact that such messages are especially exempt from stamp tax by the last proviso of section 18 of the act referred to.

Telegrams of this character should be plainly marked "Official business," and sent "Collect" in all instances when dispatched solely in the personal interest or for the benefit of the party addressed.

In this connection, attention is particularly called to the fact that the telegraph is to be used at the expense of the Government only upon important public business and in case of urgent necessity where the ordinary mail facilities do not furnish sufficient dispatch.

All telegrams sent by internal-revenue officers or by private parties on their own personal interest must be prepaid, and all telegraphic replies to such telegrams will be sent at the expense of the parties sending the same.

N. B. SCOTT, Commissioner.

(19791.)

Stamping telegrams and sleeping-car tickets under act of 1898.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., July 28, 1898.

To collectors and internal-revenue agents:

Hereafter in making examinations of the files of telegraph companies and sleeping-car companies to ascertain if the law has been complied with with reference to stamping telegrams and sleeping-car tickets, you are advised that such examination should be restricted to simply ascer taining if the documents referred to have been properly stamped.

These instructions are particularly applicable to telegrams where neither the public good nor the safety of the revenues requires that they should be delivered to the examining officer. In such cases it is not expected that all the telegrams sent by the company from any one point 12593-23

should be examined. Such examinations will be considered ample if sufficient telegrams of any date called for by the examining officer are passed through the hands of a representative of the company in the presence of the examining officer in such a manner as to enable him to see that they are properly stamped. A knowledge of the contents of the telegrams is not essential to the examining officer.

(20291.)

N. B. SCOTT, Commissioner.

Sworn statements of telephone companies.

Returns (Form 424) of messages or conversations by various branches of a telephone company may be included in the monthly returns rendered to the collector of the district in which the principal office of such company is located.

[Internal Revenue Circular No. 518.]

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., November 2, 1898.

Hereafter the sworn statement (Form 424) required from the principal office of any telephone company may include the number of messages or conversations (for which a charge of 15 cents or more has been imposed by the company) transmitted by its several branches, provided such action will not hinder the receipt of the return by the collector of internal revenue within the first fifteen days of the month succeeding that for which the return is rendered, as required by the act of June 13, 1898. In all such cases, however, each company will be required to state in its return (Form 424) that the return made includes and covers all messages or conversations transmitted for which a charge of 15 cents or more has been imposed by the company through its several branches during the period named, specifying the States (and, if known, the collection district) in which such branches are located.

The collector receiving such returns will, if satisfied that the same are correct, at once notify the collectors of the various districts in which the company's branches are located that a return of messages or conversations sent from such branches has been filed in his office, and collectors receiving such notifications will not, in such cases, require returns to be made by the local branches of that company.

Upon filing each subsequent monthly return the company will likewise specify the States or districts from which such returns of messages or conversations are included in its return during the month, and when the list of States or districts so furnished is found to agree with that furnished with the last previous return made by the company, no further notification to the collectors in whose districts such agencies are located will be required.

N. B. SCOTT, Commissioner.