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It is the aggregate amount of the legacy or distributive share which is subject to tax, if such aggregate amount exceeds the sum of $10,000. ROBT. WILLIAMS, Jr., Acting Commissioner.

Respectfully,

Mr. AUGUSTUS VAN WYCK, New York, N. Y.

(213.)

Refund of legacy tax.

Claims should be made on Form 46, and by the executor or legatees.-Appropriation for payment of such claims is available.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., September 14, 1900.

SIR: In reply to yours of the 31st ultimo, addressed to the honorable the Secretary of the Treasury, you are informed that claims for amounts paid in excess or error on legacies can be paid without waiting for additional legislation by Congress. Claims of this character should be made on Form 46 and supported by a copy of the return upon which the tax was assessed by an amended return showing the tax due and by a copy of the will. These claims should be made by the executor of the estate and in his name, if the estate has not been closed. If the estate has been closed, and the executor or administrator has been discharged, the claim may be made either by the executor or by the legatees or heirs at law and in the individual names of the legatees or heirs at law. G. W. WILSON, Commissioner.

Respectfully,

Hon. RICHARD OLNEY, 23 Court street, Boston, Mass.

(218.) Legacy tax.

Where a legacy exceeds $10,000 the tax is due on the full amount of the legacy or distributive share, and not on the amount in excess of $10,000.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., September 28, 1900.

MADAM: In reply to your letter of the 21st instant, you are informed that Collector J. W. Patterson was correct in requiring legacy tax amounting to $98.33 on the proposed distribution of $13,110 in case of the estate of your deceased mother.

Where a legacy exceeds $10,000 the tax is due on the full amount of the legacy or distributive share, and not on the amount in excess of $10,000.

Respectfully,

Miss M. F. SHERMAN,

G. W. WILSON, Commissioner.

Administratrix estate of Laura A. Sherman, Marshalltown, Iowa.

(229.)

Legacy tax.

The tax on legacies is not a tax upon the property, in the ordinary sense of the term, but upon the right to dispose of it. The Supreme Court has held that legacies consisting of Government bonds are not exempt from tax.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., October 11, 1900.

MADAM: Your letter of the 5th instant, addressed to the honorable Secretary of the Treasury, requesting information on a point which seems to you obscure, has been referred to this office.

Your question is this: "Are United States bonds liable or subject to the inheritance tax?" You state that

In a leaflet entitled "Facts about Government Bonds" occurs this sentence: "The fact that United States bonds are not subject to taxes of any character-Federal, State, or municipal-is a valuable feature of that form of investment."

You are informed that it is held that the legacy tax is not upon the property, in the ordinary sense of the term, but upon the right to dispose of it, and it is not until it has yielded its contribution to the State that it becomes the property of the legatee (United States v. Perkins, 163 U. S., 625).

In Wallace v. Myers (38 Fed. Rep. 184), it was held that, although the property of the decedent included United States bonds, the tax might be assessed upon the basis of their value, because the tax was not imposed upon the bonds themselves, but upon the estate of the decedent, or the privilege of acquiring property by inheritance. It has recently been decided by the United States Supreme Court, in the case of Plummer, Executor, v. Coler, where the question involved was the validity of the inheritance tax law of the State of New York when applied to a legacy consisting of United States bonds containing a clause of exemption from State and Federal taxation, that the conclusion fairly to be drawn from the State and Federal cases is that the right to take property by will or descent is derived from and regulated by municipal law; that, in assessing a tax upon such right or privilege, the State may lawfully measure or fix the amount of the tax by referring to the value of the property passing, and that the incidental fact that such property is composed, in whole or in part, of Federal securities does not invalidate the tax or the law under which it is imposed. (See, .also, Murdock v. Ward, 178 U. S., 139.) *

*

Respectfully, ROBT. WILLIAMS, Jr., Acting Commissioner.

Mrs. JOHN HAMILTON, Jr., Fredonia, N. Y.

1

(235.)

Legacy tax-Returns.

An itemized statement of legal debts and expenses is required, unless the collector is satisfied that the total amount of such debts and expenses does not contain any item of legacy or distributive share.

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., October 23, 1900. SIR: In your letter of the 19th instant you state that the representatives of estates located outside of your district, who have been called upon to make returns covering legacies from parties who died in your district, have stated that it is not required in other districts that a statement of legal debts and expenses shall be attached to the return, as provided for in regulations, series 7, No. 3, revised, page 10, and you ask to be advised in the matter.

In reply, you are informed that the itemized statement called for by said regulations must be furnished in cases where legacy taxes accrue, provided you are not satisfied that the amount claimed on Form 419 as legal debts and expenses contains any item of legacy or distributive share. The fact that you may not be satisfied in the matter need not delay the forwarding of the return, Form 419, as the itemized statement may be submitted as soon as received from the proper representative of the estate.

Respectfully,

G. W. WILSON, Commissioner. Mr. H. C. H. HEROLD, Collector Fifth District, Newark, N. J.

MIXED FLOUR.

(246.)

Modification of regulation concerning disposition of tax-paid mixed flour upon return by purchaser to manufacturer.

[Circular No. 154.—Int. Rev. No. 585.]

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., November 16, 1900.

To collectors of internal revenue and others:

The regulation concerning the return to and disposition of tax-paid mixed flour, by manufacturers, as shown in the fourth, fifth, and sixth paragraphs of page 21 of the regulations concerning mixed flour, series 7, No. 25, is hereby modified, as follows:

Tax-paid mixed flour returned to factory by purchasers of the same may be destroyed by the manufacturer without any record being made upon the Government book, Form 442, of its return or final disposition.

The presence of an officer to witness such destruction will not be required.

When tax-paid mixed flour which has been returned to the manufacturer by the purchaser, is taken up in the manufacturer's material account, it must be entered as a separate item upon the Government book and treated as new material. The stamps on such packages must be entirely destroyed when the packages are emptied.

Packages of tax-paid mixed flour returned as above, which are sold again, must be noted on the Government book when received back and when resold.

G. W. WILSON, Commissioner.

Approved: L. J. GAGE, Secretary of the Treasury.

OLEOMARGARINE.

[See DECISIONS (Special Tax Decisions), Nos. 2, 105, 106, 152, 160.]

(31.)

Marking, branding, and stamping packages of oleomargarine.

[Int. Rev. Circular No. 551-Superseded by Circular No. 564.]
TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,
Washington, D. C., February 1, 1900.

To collectors of internal revenue and internal-revenue agents:

In view of the frequent inquiries received at this office concerning prints, bricks, and rolls of oleomargarine packed in statutory packages, the attention of collectors and revenue agents is invited to the regulations, series 7, No. 9, revised June 18, 1895, Supplement No. 6, dated May 13, 1898.

This regulation clearly indicates—

1. That no device, mark, or brand shall be impressed upon a brick, print, or roll of oleomargarine packed in any statutory package unless the word "Oleomargarine" is also impressed thereon.

2. That no device, mark, or brand shall appear on any wrapper covering any print, brick, or roll of oleomargarine packed in any statutory package unless the word "Oleomargarine" is also marked or printed thereon.

3. That where no device, mark, or brand appears upon such print, brick, or roll, nor upon the wrapper covering the same, the word "Oleomargarine" need not appear either upon the print, brick, or roll, nor upon the wrapper covering the same.

4. That where some device or mark, accompanied by the word "Oleomargarine," is impressed upon such print, brick, or roll, the word "Oleomargarine" must appear upon the wrapper, even though no other mark or brand appear upon the wrapper.

5. Under no circumstances will any manufacturer or dealer be permitted to impress or brand or mark upon any print, brick, or roll of oleomargarine, or on any wrapper covering the same, any device, word, or words calculated to induce the public to believe that it is a product of the dairy, even though the word "Oleomargarine" appear on the

same.

6. Manufacturers are not permitted to put up oleomargarine in wooden, tin, pressed fiber, or other vessels as subdivision packages for domestic use. It is only in the case of oleomargarine packed for export that such subdivision packages are permitted.

7. In case of small packages inclosed in statutory packages for export, the marks and brands required on the inner packages must be placed on the packages proper, and not upon an outer covering, or additional or false top or bottom.

In reply to the contention that this office is not authorized to make regulations as to the device, mark, or brand upon prints, bricks, or rolls of oleomargarine, or the wrapper covering the same, this office holds that the law contemplates that oleomargarine shall be packed in packages of not less than 10 pounds each, and that those who avail themselves of the privilege granted by the regulations of this office to put up oleomargarine in prints, bricks, or rolls, and to pack the same in statutory packages, instead of packing the oleomargarine solid in statutory packages, shall not use this privilege to deceive the public.

Collectors will advise manufacturers that all oleomargarine found upon the market, shipped from the place of manufacture after this date, which is not packed, marked, stamped, and branded in accordance with the regulations will be seized as subject to forfeiture.

(108.)

G. W. WILSON, Commissioner.

Amending circular 551, relative to marking, branding, and stamping packages

of oleomargarine.

[Int. Rev. Circular No. 564.]

TREASURY DEPARTMENT,

OFFICE OF COMMISSIONER OF INTERNAL REVENUE,

Washington, D. C., April 19, 1900.

To collectors of internal revenue and internal-revenue agents: In view of the frequent inquiries received at this office concerning prints, bricks, and rolls of oleomargarine packed in statutory packages, the attention of collectors and revenue agents is invited to the following: 1. That no device or brand shall be impressed upon any brick, print, or roll of oleomargarine packed in any statutory package unless the word "Oleomargarine" is also imprinted thereon in letters equal in size to those used in expressing any brand or word used by the manu

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