application, credit or refund of a decrease determined under this subsection shall be deemed a credit or refund of an overpayment within the meaning of sections 781 (b) and 3807 (b) (1).

Sec. 3780. (c) Assessment of erroneous allowances.-If the Commissioner determines that the amount applied, credited or refunded under subsection (b) is in excess of the overassessment attributable to the carry-back with respect to which such amount was applied, credited or refunded, he may assess the amount of the excess as a deficiency as if it were due to a mathematical error appearing on the face of the return, as provided in section 272 (f). Upon making such assessment, the Commissioner shall schedule as an overassessment the decrease in any other tax resulting from the adjustments reflected in the computation of the deficiency.

Sec. 3781. Extension of time and tentative carry-back and amortization adjustments in the case of consolidated returns.

If the corporation seeking an extension of time under section 3779, a tentative carry-back adjustment under section 3780, or a tentative adjustment with respect to an amortization deduction under section 124 (j) and (k), made or was required to make a consolidated return, either for the taxable year within which the net operating loss or the unused excess profits credit arises or within which the election is made to terminate the amortization period, or for a preceding taxable year affected by such loss, credit, or election, the provisions of such sections shall apply only to such extent and subject to such conditions, limitations, and exceptions as the Commissioner, with the approval of the Secretary, may by regulations prescribe.

Sec. 3790. Prohibition of administrative review of Commissioner's decisions.

In the absence of fraud or mistake in mathematical calculation, the findings of facts in and the decision of the Commissioner upon (or in case the Secretary is authorized to approve the same, then after such approval) the merits of any claim presented under or authorized by the internal revenue laws shall not, except as provided in chapter 5, be subject to review by any other administrative or accounting officer, employee, or agent of the United States. In the absence of fraud or mistake in mathematical calculation, the allowance or nonallowance by the Commissioner, of interest on any credit or refund. under the internal revenue laws shall not, except as provided in Chapter 5, be subject to review by any other administrative or accounting officer, employee, or agent of the United States.

Sec. 3791. Rules and regulations.

Sec. 3791. (a) Authorization.—

Sec. 3791. (a) (1) In general.-Except as provided in section 1928 (a), Cotton Futures, section 2599, Marihuana, section 2559, Narcotics, section 3176, Liquor, and section 1805, Silver, the Commissioner, with the approval of the Secretary, shall prescribe and publish all needful rules and regulations for the enforcement of this title.

Sec. 3791. (a) (2) In case of change in law.The Commissioner may make all such regulations, not otherwise provided for, as may have become necessary by reason of any alteration of law in relation to internal revenue.

Sec. 3791. (b) Retroactivity of regulations or rulings.-The Secretary, or the Commissioner with the approval of the Secretary, may prescribe the extent, if any, to which any ruling, regulation, or Treasury Decision, relating to the internal revenue laws, shall be applied without retroactive effect.

Sec. 3793. Penalties and forfeitures.

Sec. 3793. (a) Fraudulent bonds, permits, and entries.

or

Sec. 3793. (a) (1) Penalty.-Every person who(A) SIMULATION OR EXECUTION.-Simulates falsely or fraudulently executes or signs any bond, permit, entry, or other document required by the provisions of the internal revenue laws, or by any regulation made in pursuance thereof, or

(B) PROCURING EXECUTION.-Procures the same to be falsely or fraudulently executed, or

(C) AIDING IN EXECUTION. Advises, aids in, or connives at such execution thereofshall be imprisoned for a term not less than one year nor more than five years, and

Sec. 3793. (a) (2) Forfeiture.-The property to which such false or fraudulent instrument relates shall be forfeited.

Sec. 3793. (b) Fraudulent returns, affidavits, and claims.—

Sec. 3793. (b) (1) Assistance in preparation or presentation.-Any person who willfully aids or assists in, or procures, counsels, or advises the preparation or presentation under, or in connection with any matter arising under, the internal revenue laws, of a false or fraudulent return, affidavit, claim, or document, shall (whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document) be guilty of a felony, and, upon conviction thereof, be fined not more than $10,000, or imprisoned for not more than five years, or both, together with the costs of prosecution.

Sec. 3793. (b) (2) Person defined.-The term "person" as used in this subsection includes an officer or employee of a corporation or a member or employee of a partnership, who as such officer, employee, or member is under a duty to perform the act in respect of which the violation occurs.

Sec. 3794. Interest on delinquent taxes.

Notwithstanding any provision of law to the contrary, interest accruing during any period of time after August 30, 1935, upon any internal-revenue tax (including amounts assessed or collected as a part thereof) not paid when due, shall be at the rate of 6 per centum per annum.

Sec. 3797. Definitions.

Sec. 3797. (a) When used in this title, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof

Sec. 3797. (a) (1) Person.-The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, company, or corporation.

Sec. 3797. (a) (2) Partnership and partner.The term "partnership" includes a syndicate, group, pool, joint venture, or other unincorporated organization, through or by means of which any business, financial operation, or venture is carried on, and which is not, within the meaning of this title, a trust or estate or a corporation; and the term "partner" includes a member in such a syndicate, group, pool, joint venture, or organization. A person shall be recognized as a partner for income tax purposes if he owns a capital interest in a partnership in which capital is a material income-producing factor, whether or not such interest was derived by purchase or gift from any other person.

Sec. 3797. (a) (3) Corporation.-The term "corporation" includes associations, joint-stock companies, and insurance companies.

Sec. 3797. (a) (4) Domestic.-The term "domestic" when applied to a corporation or a partnership means created or organized in the United States or under the law of the United States or of any State or Territory.

Sec. 3797. (a) (5) Foreign.-The term "foreign" when applied to a corporation or partnership means a corporation or partnership which is not domestic.

Sec. 3797. (a) (6) Fiduciary.-The term "fiduciary" means a guardian, trustee, executor, administrator, receiver, conservator, or any person acting in any fiduciary capacity for any person.

Sec. 3797. (a) (7) Stock.-The term "stock" includes the share in an association, joint-stock company, or insurance company.

Sec. 3797. (a) (8) Shareholder.-The term "shareholder" includes a member in an association, joint-stock company, or insurance company.

Sec. 3797. (a) (9) United States.-The term "United States" when used in a geographical sense includes only the States, the Territories of Alaska and Hawaii, and District of Columbia.

Sec. 3797. (a) (10) State.-The word "State" shall be construed to include the Territories and the District of Columbia, where such construction is necessary to carry out provisions of this title.

Sec. 3797. (a) (11) Secretary.-The term "Secretary" means the Secretary of the Treasury.

Sec. 3797. (a) (12) Commissioner.-The term "Commissioner" means the Commissioner of Internal Revenue.

Sec. 3797. (a) (13) Collector.-The term "collector" means collector of internal revenue.

Sec. 3797. (a) (14) Taxpayer.-The term "taxpayer" means any person subject to a tax imposed by this title.

Sec. 3797. (a) (15) Military or naval forces of the United States.-The term "military or naval forces of the United States" includes the Marine Corps, the Coast Guard, the Army Nurse Corps, Female, the Women's Army Auxiliary Corps, the Navy Nurse Corps, Female, and the Women's Reserve branch of the Naval Reserve.

Sec. 3797. (a) (16) Withholding agent.-The term "withholding agent" means any person required to deduct and withhold any tax under the provisions of section 143 or 144.

Sec. 3797. (a) (17) Husband and wife.-As used in sections 22 (k), 23 (u), 171 and the last sentence of section 25 (b) (3), if the husband and wife therein referred to are divorced, wherever appropriate to the meaning of such sections, the term "wife" shall be read "former wife" and the term "husband" shall be read "former husband"; and if the payments described in such sections are made by or on behalf of the wife or former wife to the husband or former husband instead of vice versa, wherever appropriate to the meaning of such sections, the term "husband" shall be read "wife" and the term "wife" shall be read "husband."

Sec. 3800. Jurisdiction of district courts to issue orders, processes, and judgments.

The district courts of the United States at the instance of the United States shall have such jurisdiction to make and issue, both in actions at law and suits in equity, writs and orders of injunction, and of ne exeat republica, orders appointing receivers, and such other orders and process, and to render such judgments and decrees, granting in proper cases both legal and equitable relief together, as may be necessary or appropriate for the enforcement of the internal revenue laws. The remedies hereby provided are in addition to and not exclusive of any and all other remedies of the United States in such courts or otherwise to enforce such laws.

Sec. 3801. Mitigation of effect of limitation and other provisions in income tax cases.

Sec. 3801. (a) Definitions.-For the purpose of this section

Sec. 3801. (a) (1) Determination.-The term "determination under the income tax laws" means(A) A closing agreement made under section 3760;

(B) A decision by the Board of Tax Appeals or a judgment, decree, or other order by any court of competent jurisdiction, which has become final; or (C) A final disposition by the Commissioner of a claim or refund. For the purposes of this section a claim for refund shall be deemed finally disposed of by the Commissioner

(i) as to items with respect to which the claim was allowed, upon the date of allowance of refund or credit or upon the date of mailing notice of disallowance (by reason of offsetting items) of the claim for refund, and

(ii) as to items with respect to which the claim was disallowed in whole or in part, or as to items applied by the Commissioner in reduction of the refund or credit, upon expiration of the time for instituting suit with respect thereto (unless suit is instituted prior to the expiration of such time). Such term shall not include any such agreement made, or decision, judgment, decree, or order which became final, or claim for refund finally disposed of, prior to August 27, 1938.

Sec. 3801. (a) (2) Taxpayer.-Notwithstanding the provisions of section 3797 the term "taxpayer" means any person subject to a tax under the applicable Revenue Act.

Sec. 3801. (a) (3) Related taxpayer.-The term "related taxpayer" means a taxpayer who, with the taxpayer with respect to whom a determination specified in subsection (b) (1), (2), (3), or (4) is made, stood, in the taxable year with respect to which the erroneous inclusion, exclusion, omission, allowance, or disallowance therein referred to was made, in one of the following relationships: (A) husband and wife; (B) grantor and fiduciary; (C) grantor and beneficiary; (D) fiduciary and beneficiary, legatee, or heir; (E) decedent and decedent's estate; or (F) partner.

Sec. 3801. (b) Circumstances of adjustment.When a determination under the income tax laws

Sec. 3801. (b) (1) Requires the inclusion in gross income of an item which was erroneously included in the gross income of the taxpayer for another taxable year or in the gross income of a related taxpayer; or

Sec. 3801. (b) (2) Allows a deduction or credit which was erroneously allowed to the taxpayer for another taxable year or to a related taxpayer; or

Sec. 3801. (b) (3) Requires the exclusion from gross income of an item with respect to which tax was paid and which was erroneously excluded or omitted from the gross income of the taxpayer for another taxable year or from the gross income of a related taxpayer; or

Sec. 3801. (b) (4) Allows or disallows any of the additional deductions allowable in computing the net income of estates or trusts, or requires or denies any of the inclusions in the computation of net income of beneficiaries, heirs, or legatees, specified in section 162 (b) and (c) of chapter 1, and corresponding sections of prior revenue Acts, and the correlative inclusion or deduction, as the case may be, has been erroneously excluded, omitted, or included, or disallowed, omitted, or allowed, as the case may be, in respect of the related taxpayer; or

Sec. 3801. (b) (5) Determines the basis of property for depletion, exhaustion, wear and tear, or obsolescence, or for gain or loss on a sale or exchange, and in respect of any transaction upon which such basis depends there was an erroneous inclusion in or omission from the gross income of, or an erroneous recognition or nonrecognition of gain or loss to, the taxpayer or any person who acquired title to such property in such transaction and from whom mediately or immediately the taxpayer derived title subsequent to such transactionand, on the date the determination becomes final, correction of the effect of the error is prevented by the operation (whether before, on, or after May 28, 1938) of any provision of the internal-revenue laws other than the section and other than section 3761 (relating to compromises), then the effect of the error shall be corrected by an adjustment made under this section. Such adjustment shall be made only if there is adopted in the determination a position maintained by the Commissioner (in case the

amount of the adjustment would be refunded or credited in the same manner as an overpayment under subsection (c)) or by the taxpayer with respect to whom the determination is made (in case the amount of the adjustment would be assessed and collected in the same manner as a deficiency under subsection (c)), which position is inconsistent with the erroneous inclusion, exclusion, omission, allowance, recognition, or nonrecognition, as the case may be. In case the amount of the adjustment would be assessed and collected in the same manner as a deficiency, the adjustment shall not be made with respect to a related taxpayer unless he stands in such relationship to the taxpayer at the time the latter first maintains the inconsistent position in a return, claim for refund, or petition (or amended petition) to the Board of Tax Appeals for the taxable year with respect to which the determination is made, or if such position is not so maintained, then at the time of the determination.

Sec. 3801. (c) Method of adjustment. The adjustment authorized in subsection (b) shall be made by assessing and collecting, or refunding or crediting, the amount thereof, to be ascertained as provided in subsection (d), in the same manner as if it were a deficiency determined by the Commissioner with respect to the taxpayer as to whom the error was made or an overpayment claimed by such taxpayer, as the case may be, for the taxable year with respect to which the error was made, and as if on the date of the determination specified in subsection (b) one year remained before the expiration of the periods of limitation upon assessment or filing claim for refund for such taxable year.

Sec. 3801. (d) Ascertainment of amount of adjustment.—In computing the amount of an adjustment under this section there shall first be ascertained the tax previously determined for the taxable year with respect to which the error was made. The amount of the tax previously determined shall be the excess of

(1) the sum of (A) the amount shown as the tax by the taxpayer upon his return (determined as provided in section 271 (b) (1) and (3)), if a return was made by the taxpayer and an amount was shown as the tax by the taxpayer thereon, plus (B) the amounts previously assessed (or collected without assessment) as a deficiency, over

(2) the amount of rebates, as defined in section 271 (b) (2), made.

There shall then be ascertained the increase or decrease in the tax previously determined which results solely from the correct exclusion, inclusion, allowance, disallowance, recognition, or nonrecognition, of the item, inclusion, deduction, credit, gain, or loss, which was the subject of the error. The amount so ascertained (together with any amounts wrongfully collected, as additions to the tax or interest, as a result of such error) shall be the amount of the adjustment under this section.

Sec. 3801. (e) Adjustment unaffected by other items, etc.-The amount to be assessed and collected in the same manner as a deficiency, or to be refunded or credited in the same manner as an overpayment,

under this section, shall not be diminished by any credit or set-off based upon any item, inclusion, deduction, credit, exemption, gain, or loss other than the one which was the subject of the error. Such amount, if paid, shall not be recovered by a claim or suit for refund or suit for erroneous refund based upon any item, inclusion, deduction, credit, exemption, gain, or loss other than the one which was the subject of the error.

Sec. 3801. (f) No adjustment for years prior to 1932.-No adjustment shall be made under this section in respect of any taxable year beginning prior to January 1, 1932.

Sec. 3801. (g) Taxes imposed by chapter 9.The provisions of this section shall not be construed to apply to any tax imposed by chapter 9.

Sec. 3803. Separability clause.

If any provision of this title, or the application thereof to any person or circumstances, is held invalid, the remainder of the title, and the application of such provisions to other persons or circumstances, shall not be affected thereby.

Sec. 3804. Time for performing certain acts postponed by reason of war.

Sec. 3804. (a) Individuals.-The period of time after December 6, 1941, during which an individual is continuously outside the Americas (if such period is longer than ninety days), and the next ninety days thereafter, shall be disregarded in determining, under the internal revenue laws, in respect of any tax liability (including any interest, penalty, additional amount, or addition to the tax) of such individual

Sec. 3804. (a) (1) Whether any of the following acts was performed within the time prescribed therefor:

(A) filing any return of income, estate, or gift tax (except income tax withheld at source and income tax imposed by Chapter 9 or any law superseded thereby);

(B) payment of any income, estate, or gift tax (except income tax withheld at source and income tax imposed by Chapter 9 or any law superseded thereby) or any installment thereof or of any other liability to the United States in respect thereof;

(C) filing a petition with the Board of Tax Appeals for redetermination of a deficiency, or for review of a decision rendered by the Board;

(D) allowance of a credit or refund of any tax; (E) filing a claim for credit or refund of any tax; (F) bringing a suit upon any such claim for credit or refund;

(G) assessment of any tax;

(H) giving or making any notice or demand, for the payment of any tax, or with respect to any liability to the United States in respect of any tax;

(I) collection, by the Commissioner or the collector, by distraint or otherwise, of the amount of any liability in respect of any tax;

(J) bringing suit by the United States, or any

officer on its behalf, in respect of any liability in respect of any tax; and

(K) any other act required or permitted under the internal revenue laws specified in regulations prescribed under this section by the Commissioner with the approval of the Secretary;

Sec. 3804. (a) (2) The amount of any credit or refund (including interest).

Sec. 3804. (b) Other taxpayers and other circumstances. In any case to which subsection (a) does not apply in which it is determined by the Commissioner, under regulations prescribed by him with the approval of the Secretary, that—

Sec. 3804. (b) (1) By reason of an individual being outside the Americas, or

Sec. 3804. (b) (2) By reason of any locality (within or without the Americas) being an area of enemy action or being an area under the control of the enemy, as determined by the Commissioner, or

Sec. 3804. (b) (3) By reason of an individual in the military or naval forces of the United States being outside the States of the Union and the District of Columbia,

it is impossible or impracticable to perform any one or more of the acts specified in subsection (a), then in determining, under the internal-revenue laws whether such act was performed within the time prescribed therefor, in respect of any tax liability (including any interest, penalty, additional amount, or addition to tax) affected by the failure to perform such act within such time, and in determining the amount of any credit or refund (including interest) affected by such failure, there shall be disregarded such period after December 6, 1941, as may be prescribed by such regulations.

Sec. 3804. (c) Limitation on time to be disregarded. The period of time disregarded under this section shall not extend beyond the date specified in clause (1) or clause (2) of this subsection whichever is the earlier:

Sec. 3804. (c) (1) December 31, 1947, or such date later than December 31, 1947, as the Commissioner may fix in any case in which he makes a determination under subsection (b) if such determination is made after the date this subsection as amended takes effect and is based on the existence prior to January 1, 1948, of one or more of the circumstances specified in paragraph (1), (2), or (3) of subsection (b); or

Sec. 3804. (c) (2) in the case of an individual with respect to whom a period of time is disregarded under this section, the fifteenth day of the third month following the month in which an executor, administrator, or a conservator of the estate of such individual qualifies.

Sec. 3804. (d) Exceptions.—

Sec. 3804. (d) (1) Tax in jeopardy; bankruptcy and receiverships; and transferred assets.-Notwithstanding the provisions of subsection (a) or (b), any action or proceeding authorized by section 146 (regardless of the taxable year for which the tax arose), 273, 274, 311, 872, 900, 1013, 1015, 1025, or 3660, as well as any other action or preceding authorized by law in connection therewith, may be taken, begun, or prosecuted. In any other case in which the Commissioner determines that collection of the amount of any assessment would be jeopardized by delay, the provisions of subsections (a) and (b) shall not operate to stay collection of such amount by distraint or otherwise as authorized by law. There shall be excluded from any amount assessed or collected pursuant to this paragraph the amount of interest, penalty, additional amount, and addition to the tax, if any, in respect of the period disregarded under subsection (a) or (b). In any case to which this paragraph relates, if the Commissioner or collector is required to give any notice to or make any demand upon any person, such requirement shall be deemed to be satisfied if the notice or demand is prepared and signed, in any case in which the address of such person last known to the Commissioner or collector is in an area for which United States post offices under instructions of the Postmaster General are not, by reason of the war, accepting mail for delivery at the time the notice or demand is signed. In such case the notice or demand shall be deemed to have been given or made upon the date it is signed.

Sec. 3804. (d) (2) Action taken before ascertainment of right to benefits.-The assessment or collection of any internal revenue tax or of any liability to the United States in respect of any internal revenue tax, or any action or proceeding by or on behalf of the United States in connection therewith, may be made, taken, begun, or prosecuted in accordance with law, without regard to the provisions of subsection (a) or (b), unless prior to such assessment, collection, action, or proceeding it is ascertained that the person concerned is entitled to the benefits of subsection (a) or (b).

Sec. 3804. (d) (3) Expiration of period of limitations prior to enactment of this section.-This section shall not operate to extend the time for performing any act specified in subsection (a) (1) (G), (H), (I), or (J) if such time under the law in force prior to the date of enactment of this section expired prior to such date.

Sec. 3804. (e) Definitions.-For purposes of this section

Sec. 3804. (e) (1) Americas.-The term "Americas" means North, Central, and South America (including the West Indies but not Greenland), and the Hawaiian Islands.

Sec. 3804. (e) (2) When individual ceases to be outside Americas or within an area of enemy action. For the purpose of determining whether any act specified in subsection (a) (1) (G), (H),