MARCH 10, 1922, 1 COMP. GEN. 492

MARCH 10, 1922, 1 COMP. GEN. 492

REDEMPTION OF SPECIAL TAX STAMPS AMOUNTS TO BE REFUNDED ON ACCOUNT OF PAYMENTS REPRESENTED BY SPECIAL TAX STAMPS ARE CHARGEABLE TO THE PERMANENT INDEFINITE ANNUAL APPROPRIATIONS FOR REDEMPTION OF STAMPS AUTHORIZED BY SECTION 3689, REVISED STATUTES, AND NOT THE DEFINITE ANNUAL APPROPRIATIONS FOR REFUNDING TAXES ILLEGALLY COLLECTED.

ACTING COMPTROLLER GENERAL GINN TO THE SECRETARY OF THE TREASURY, MARCH 10, 1922:

I HAVE YOUR LETTER DATED FEBRUARY 20, 1922, REQUESTING DECISION WHETHER IN MAKING A REFUND IN WHOLE OR IN PART OF THE AMOUNT PAID FOR A SPECIAL TAX STAMP, THE PAYMENT SHOULD BE MADE FROM THE INDEFINITE APPROPRIATION FOR THE REDEMPTION OF STAMPS OR FROM THE DEFINITE APPROPRIATION FOR REFUNDING TAXES ILLEGALLY COLLECTED.

THE INDEFINITE APPROPRIATION FOR REDEMPTION OF STAMPS IS MADE UNDER SECTION 3689, REVISED STATUTES, IN THE FOLLOWING TERMS:

THERE ARE APPROPRIATED, OUT OF ANY MONEYS IN THE TREASURY NOT OTHERWISE APPROPRIATED, FOR THE PURPOSES HEREINAFTER SPECIFIED, SUCH SUMS AS MAY BE NECESSARY FOR THE SAME RESPECTIVELY; AND SUCH APPROPRIATIONS SHALL BE DEEMED PERMANENT ANNUAL APPROPRIATIONS.

REDEMPTION OF STAMPS (INTERNAL REVENUE):

OF SUCH SUM OF MONEY AS MAY BE NECESSARY TO REPAY THE AMOUNT OR VALUE PAID FOR INTERNAL-REVENUE STAMPS WHICH MAY HAVE BEEN SPOILED, DESTROYED, OR RENDERED USELESS OR UNFIT FOR THE PURPOSE INTENDED, OR WHICH THROUGH MISTAKE MAY HAVE BEEN IMPROPERLY OR UNNECESSARILY USED.

THIS SECTION ALSO CONTAINED A PROVISION MAKING A PERMANENT INDEFINITE APPROPRIATION FOR REFUNDING TAXES ILLEGALLY COLLECTED BUT SAID PROVISION WAS REPEALED BY THE ACT OF FEBRUARY 24, 1919, 40 STAT., 1145, AS HEREINAFTER SHOWN, AND DEFINITE ANNUAL APPROPRIATIONS ARE MADE FOR THE REFUND OF TAXES ILLEGALLY COLLECTED, THE APPROPRIATION FOR THE FISCAL YEAR ENDING JUNE 30, 1922, READING AS FOLLOWS:

FOR REFUNDING TAXES ILLEGALLY COLLECTED UNDER THE PROVISIONS OF SECTIONS 3220 AND 3689, REVISED STATUTES, AS AMENDED BY THE ACT OF FEBRUARY 24, 1919, $12,000,000. ACT OF MARCH 3, 1921, 41 TAT., 1274.

SECTION 1316 OF THE ACT OF FEBRUARY 24, 1919, 40 STAT., 1145, PROVIDES:

(A) THAT SECTION 3220 OF THE REVISED STATUTES IS HEREBY AMENDED TO READ AS FOLLOWS:

"SEC. 3220. THE COMMISSIONER OF INTERNAL REVENUE, SUBJECT TO REGULATIONS PRESCRIBED BY THE SECRETARY OF THE TREASURY, IS AUTHORIZED TO REMIT, REFUND, AND PAY BACK ALL TAXES ERRONEOUSLY OR ILLEGALLY ASSESSED OR COLLECTED, ALL PENALTIES COLLECTED WITHOUT AUTHORITY, AND ALL TAXES THAT APPEAR TO BE UNJUSTLY ASSESSED OR EXCESSIVE IN AMOUNT, OR IN ANY MANNER WRONGFULLY COLLECTED; ALSO TO REPAY TO ANY COLLECTOR OR DEPUTY COLLECTOR THE FULL AMOUNT OF SUCH SUMS OF MONEY AS MAY BE RECOVERED AGAINST HIM IN ANY COURT, FOR ANY INTERNAL REVENUE TAXES COLLECTED BY HIM, WITH THE COST AND EXPENSES OF SUIT; ALSO ALL DAMAGES AND COSTS RECOVERED AGAINST ANY ASSESSOR, ASSISTANT ASSESSOR, COLLECTOR, DEPUTY COLLECTOR, AGENT, OR INSPECTOR, IN ANY SUIT BROUGHT AGAINST HIM BY REASON OF ANYTHING DONE IN THE DUE PERFORMANCE OF HIS OFFICIAL DUTY, AND SHALL MAKE REPORT TO CONGRESS AT THE BEGINNING OF EACH REGULAR SESSION OF CONGRESS OF ALL TRANSACTIONS UNDER THIS SECTION.'

(C) THAT THE PARAGRAPH OF SECTION 3689 OF THE REVISED STATUTES, AS AMENDED, READING AS OLLOWS: "REFUNDING TAXES ILLEGALLY COLLECTED (INTERNAL REVENUE): TO REFUND AND PAY BACK DUTIES ERRONEOUSLY OR ILLEGALLY ASSESSED OR COLLECTED UNDER THE INTERNAL REVENUE LAWS," IS REPEALED FROM AND AFTER JUNE 30, 1920; AND THE SECRETARY OF THE TREASURY SHALL SUBMIT FOR THE FISCAL YEAR 1921, AND ANNUALLY THEREAFTER, AN ESTIMATE OF APPROPRIATIONS TO REFUND AND PAY BACK DUTIES OR TAXES ERRONEOUSLY OR ILLEGALLY ASSESSED OR COLLECTED UNDER THE INTERNAL REVENUE LAWS, AND TO PAY JUDGMENTS, INCLUDING INTEREST AND COSTS, RENDERED FOR TAXES OR PENALTIES ERRONEOUSLY OR ILLEGALLY ASSESSED OR COLLECTED UNDER THE INTERNAL REVENUE LAWS.

SEE ALSO SECTION 1317 OF THE ACT OF NOVEMBER 23, 1921, 42 STAT., 314.

IT WILL BE NOTED THAT WHILE THE PROVISION IN SECTION 3689, REVISED STATUTES, MAKING PERMANENT INDEFINITE ANNUAL APPROPRIATIONS FOR REFUNDING TAXES ILLEGALLY COLLECTED, IS EXPRESSLY REPEALED AND IS SUPERSEDED BY DEFINITE ANNUAL APPROPRIATIONS, SUCH AS THAT MADE IN THE ACT OF MARCH 3, 1921, SUPRA, THE PERMANENT INDEFINITE APPROPRIATIONS MADE IN SAID SECTION FOR REDEMPTION OF STAMPS HAVE NOT BEEN REPEALED OR SUPERSEDED.

IT HAS BEEN SUGGESTED THAT SPECIAL TAX STAMPS SHOULD NOT BE TREATED AS STAMPS WITHIN THE MEANING OF THE APPROPRIATION FOR THE REDEMPTION OF STAMPS AND AUTHORITIES HAVE BEEN CITED TO SHOW THAT THERE IS A DISTINCTION BETWEEN SPECIAL TAX STAMPS AND DOCUMENTARY OR PROPRIETARY STAMPS.

THAT SPECIAL TAX STAMPS ARE IN CERTAIN RESPECTS DIFFERENT FROM DOCUMENTARY AND PROPRIETARY STAMPS THERE WOULD APPEAR TO BE NO DOUBT, BUT NEITHER THE LAWS IN FORCE WHEN THE PROVISION FOR PERMANENT ANNUAL APPROPRIATIONS FOR REDEMPTION OF STAMPS WAS MADE IN SECTION 3689, REVISED STATUTES (SEE SECTION 161, ACT OF JUNE 30, 1864, 13 STAT., 294; SECTION 41 ACT OF JUNE 6, 1872, 17 STAT., 257; SECTION 3426, REVISED STATUTES), NOR THE PROVISIONS OF THE ACT OF MAY 12, 1900, 31 STAT., 177, ARE LIMITED IN THEIR APPLICATION TO DOCUMENTARY OR PROPRIETARY STAMPS. SAID LAWS RELATE TO ALL STAMPS. SEE PARTICULARLY THE PROVISION IN THE ACT OF MAY 12, 1900, THAT NO CLAIM FOR THE REDEMPTION OF OR ALLOWANCE FOR STAMPS SHALL BE ALLOWED UNLESS PRESENTED WITHIN TWO YEARS AFTER THE PURCHASE OF SAID STAMPS FROM THE GOVERNMENT. THIS PROVISION HAS NOT BEEN REPEALED OR SUPERSEDED. IT WAS THE WELL ESTABLISHED PRACTICE TO MAKE REFUNDS ON ACCOUNT OF SPECIAL TAX STAMPS FROM THE APPROPRIATIONS MADE UNDER SECTION 3689 FOR THE REDEMPTION OF STAMPS RATHER THAN FROM THE APPROPRIATION MADE UNDER SAID SECTION FOR REFUNDING TAXES ILLEGALLY COLLECTED, 6 COMP. DEC. 588; 8 COMP. DEC., 280, AND IT HAS BEEN THE UNIFORM PRACTICE SINCE JUNE 30, 1920, TO MAKE SUCH REFUNDS FROM THE INDEFINITE APPROPRIATION MADE FOR THE REDEMPTION OF STAMPS, AND NOT FROM THE DEFINITE ANNUAL APPROPRIATIONS MADE FOR REFUNDING TAXES ILLEGALLY COLLECTED. THERE WOULD APPEAR TO BE NO NECESSITY OR JUSTIFICATION FOR CHANGING THE WELL-ESTABLISHED PROCEDURE IN REGARD TO THIS MATTER, AND ACCORDINGLY I HAVE TO ADVISE THAT THE PERMANENT INDEFINITE ANNUAL APPROPRIATIONS FOR REDEMPTION OF STAMPS, AND NOT THE DEFINITE ANNUAL APPROPRIATIONS FOR REFUNDING TAXES ILLEGALLY COLLECTED, ARE THE APPROPRIATIONS CHARGEABLE WITH THE AMOUNTS TO BE REFUNDED ON ACCOUNT OF PAYMENTS REPRESENTED BY SPECIAL TAX STAMPS.