B-5768 September 18, 1939

B-5768: Sep 18, 1939

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In your request for review you urge that the amount allowed is incorrect inasmuch as you were informed "by Mr. Payments to informers in matters concerning the internal revenue are made under authority of section 3463 Revised Statutes (now section 3792. Which is as follows: "The Commissioner of Internal Revenue. Is authorized to pay such sums. In cases where such expenses are not otherwise provided for by law." and as provided by Treasury Decision 4663. The records show there were recovered from Bessie Cohen income taxes and penalties totaling $443.40 (exclusive of interest. Upon which reward claims are not paid). It was administratively determined that a reward of 5 percent of such sum would be suitable compensation to you for your services in connection with the case.

B-5768 September 18, 1939

William M. Goldenberg, 1711 W. Diamond Street, Philadelphia, Pennsylvania

Sir:

Your letter of July 12, 1939, request review of settlement of this office No. 0542439, dated May 24, 1939, which certified to be due you the sum of $22.17 as reward for having given the first information which led to the detection and punishment of Bessie Cohen for violation of the internal revenue laws, the amount allowed being sum recommended for payment by the Commissioner of Internal Revenue and approved by the Secretary of the Treasury.

In your request for review you urge that the amount allowed is incorrect inasmuch as you were informed "by Mr. Eisels of the Phila. office that he had recommended my receiving the full 10% reward, because I had given quite a bit of assistance and information to Deputy John J. White whose recommendation agreed with that of Mr. Eisels. Instead I received less than 5%."

Payments to informers in matters concerning the internal revenue are made under authority of section 3463 Revised Statutes (now section 3792, Internal Revenue Code), which is as follows:

"The Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, is authorized to pay such sums, not exceeding in the aggregate the sum appropriated therefore, as he may deem necessary for detecting and bringing to trial and punishment persons guilty of violating the internal-revenue laws, or conniving at the same, in cases where such expenses are not otherwise provided for by law."

and as provided by Treasury Decision 4663, July 6, 1936, in part as follows:

"*** the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, does hereby offer for information given by person other than officers of internal revenue, or persons appointed or employed in, or acting in connection with, the Internal Revenue Service, that shall lead to the detection and punishment of persons guilty of violating the internal revenue laws, or conniving at the same, such reward as the Commissioner of Internal Revenue, with the approval of the Secretary of the Treasury, shall deem suitable, but in no case exceeding 10 percent of the net amount of taxes, penalties, fines and forfeitures which, by reason of said information, shall be paid irrecoverable to the Untied States through suit or otherwise."

The records show there were recovered from Bessie Cohen income taxes and penalties totaling $443.40 (exclusive of interest, upon which reward claims are not paid), and it was administratively determined that a reward of 5 percent of such sum would be suitable compensation to you for your services in connection with the case.

The action of the Commissioner of Internal Revenue and the Secretary of the Treasury in finding that the sum of $22.17 is a suitable reward in this instance is not subject to review or revision by this office.

Check No. 5,669,670, drawn June 1, 1939, for $22. 17, and copy of the certificate or settlement are returned herewith.

Respectfully,

Fred B. Brown Comptroller General of the United States

Enclosures.