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FEDERAL REGISTER, March 17, 1936

keep such records as the Commissioner deems sufficient to show whether or not such person is liable to tax. A r t. 504. Quarterly returns of representatives’ tax.— For the period beginning March 2, 1936, and ending May 31, 1936, and for each subsequent period of three calendar months ending August 31, 1936, November 30, 1936, and February 28, 1937, each representative shall prepare a return, in quad­ ruplicate, on the prescribed form. Copies of this form may be obtained from any collector. Each return shall be filled out in accordance with the instructions contained thereon and the regulations applicable thereto. The original and all copies of each return shall be signed and verified under oath or affirmation by the representative. The original and first two copies of each return shall be filed with the collector for the district in which is located the legal residence or principal place of business of the repre­ sentative, or if the representative has no legal residence or principal place of business in the United States, with the collector at Baltimore, Maryland. The remaining copy of the return shall be retained by the representative and made a part of his records. Each return shall be filed on or be­ fore the last day of the first month following the period for which it is made. I f such last day falls on Sunday or a legal holiday, the return may be filed on the next following busi­ ness day. I f placed in the mails, t;he return shall be posted in ample time to reach the collector’s office, under ordinary handling of the mails, on or before the date on which the return is required to be filed. As to additions to the tax in the case of failure to file the return within the prescribed time, see article 605. A r t. 505. Payment of representatives’ tax.— The represent­ atives’ tax is due and payable to the collector, without any assessment by the Commissioner or notice by the collector, at the time fixed for filing the quarterly return. For provisions relating to interest, see article 603, and fo r provisions relat­ ing to penalties, see articles 604 and 605 and section 1114 of the Revenue Act of 1926, made applicable by section 8 (c) of the Act.

Jeopardy assessment Section 1105 of the Revenue Act of 1932, as amended by section 510 of the Revenue Act of 1934

S ec. 1105. (a ) I f the Commissioner believes that the col­ lection of any tax (other than income tax, estate tax, and gift tax) under any provision of the internal-revenue laws will be jeopardized by delay, he shall, whether or not the time otherwise prescribed by law for making return and paying such tax has expired, immediately assess such tax (together with all interest and penalties the assessment of which is provided for by la w ). Such tax, penalties, and interest shall thereupon become immediately due and payable, and immedi­ ate notice and demand shall be made by the collector for the payment thereof. Upon failure or refusal to pay such tax, penalty, and interest, collection thereof by distraint shall be lawful without regard to the period prescribed in section 3187 of the Revised Statutes, as amended. (b) The collection of the whole or any part of the amount of such assessment may be stayed by filing with the collector a bond in such amount, not exceeding double the amount as to which the stay is desired, and with such sureties, as the collector deems necessary, conditioned upon the payment of the amount collection of which is stayed, at the time at which, but for this section, such amount would be due. A r t. 602. Jeopardy assessment.— Whenever, in the opinion of the collector, it becomes necessary to protect the inter­ ests of the Government by effecting an immediate return and collection of the tax, the case should be promptly re­ ported to the Commissioner by telegram or letter. The communication should recite the full name and address of the person involved, the amount of taxes due, the period involved, and a statement as to the reason fo r the recom­ mendation, which will enable the Commissioner to immedi­ ately assess the tax, together with all penalties and interest due. Upon assessment such tax, penalty, and interest shall become immediately due and payable, whereupon the col­ lector will issue immediately a notice and demand fo r pay­ ment of the tax, penalty, and interest. CHAPTER VI. MISCELLANEOUS PROVISIONS The collection of the whole or any part of the amount of the jeopardy assessment may be stayed by filing with Collection and Payment of Taxes the collector a bond in such amount, not exceeding double Section 8 (a) and (c) of the act the amount with respect to which the stay is desired and S ec. 8. (a) The taxes imposed by this Act shall be collected with such sureties as the collector deems necessary, condi­ by the Commissioner of Internal Revenue and shall be paid tioned upon the payment of the amount, collection of which into the Treasury of the United States as internal-revenue is stayed, at the time at which, but for this section, such receipts. * * * amount would be due. In lieu of surety or sureties the (c) A ll provisions of law, including penalties, applicabletaxpayer may deposit with the collector bonds or notes of with respect to any tax imposed by section 600 or section 800 the United States, or bonds or notes fully guaranteed by of the Revenue Act of 1926, and the provisions of section 607 the United States, having a par value not less than the of the Revenue Act of 1934, insofar as applicable and not amount of the bond required to be furnished, together with inconsistent with the provisions of this Act, shall be appli­ an agreement authorizing the collector in case of default cable with respect to the taxes imposed by this Act. to collect or sell such bonds or notes so deposited. Upon refusal to pay, or failure to pay or give bond, the col­ Underpayments lector will proceed immediately to collect the tax, penalty, Section 6 of the act and interest by distraint without regard to the period de­ S ec. 6. I f * * * less than the correct amount of the scribed in section 3187 of the United States Revised Statutes, tax imposed by sections 2 or 4 of this Act is paid or deducted as amended. Interest with respect to any compensation payment and the * * * underpayment of the tax cannot be adjusted under sections Section 8 (a ) of the act 3 or 5, * * * the amount of the underpayment shall be S ec. 8. (a ) collected in such manner and at such times (subject to the there shall be added as part of the tax (except in the case statute of limitations properly applicable thereto) as may be of adjustments made in accord with the provisions of this prescribed by regulations under this Act as made by the A ct) interest at the rate of 6 per centum per annum, or for Commissioner o f Internal Revenue. any part of a month, from the date the tax became due A rt. 601. Collection of underpayments of tax.— I f any em­ until paid. ployees’ tax or carriers’ tax is not paid when due, and is not Section 404 of the Revenue A ct of 1935 adjusted under article 405 or 406, the tax shall be assessed Sec. 404. Notwithstanding any provision of law to the con­ against and collected from the carrier. Any representatives’ tax not paid when due shall be assessed against and collected trary, interest accruing during any period of time after the from the representative. The Commissioner may also assess date of the enactment of this Act upon any internal-revenue unpaid employees’ tax against the employee. In such case, tax (including amounts assessed or collected as a part there­ such tax may be collected from the carrier or from the em­ o f) or customs duty, not paid when due, shall be at the rate ployee. See article 603, relating to interest, and article 604, of 6 per centum per annum. A r t. 603. Interest.— The due date of any tax for the pur­ relating to penalty and interest for failure to pay the tax pose of computing interest is the last day on which the reafter notice and demand.
 * * * I f the taxes are not paid when due,