30 June 1864. Proceedings to enforce forfeit ure. Penalty for having possession of such goods. seized. Disposition of perishable pro perty. to the United States; (a) and also all raw materials found in the possession of any person or persons intending to manufacture the same into articles of a kind subject to tax, for the purpose of fraudulently selling such manufactured articles, or with design to evade the payment of said tax; and also all tools, implements, instruments, and personal property whatsoever, in the place or building or within any yard or enclosure where such articles or such raw materials shall be found, (b) may also be seized by any collector or deputy-collector, as aforesaid, and the same shall be forfeited as aforesaid. And the proceedings to enforce said forfeiture shall be in the nature of a proceeding in rem, in the circuit or district court of the United States for the district where such seizure is made, or in any other court of competent jurisdiction. (c) And any person who shall have in his custody or possession (d) any such goods, wares, merchandise, articles or objects, subject to tax as aforesaid, for the purpose of selling the same, with the design of avoiding payment of the taxes imposed thereon, shall be liable to a penalty of five hundred dollars, or not less than double the amount of taxes fraudulently attempted to be evaded, (e) to be recovered in any court of competent jurisdiction. And Custody of goods the goods, wares, merchandise, articles or objects, which shall be so seized by any collector or deputy-collector, may, at the option of the collector, be delivered to the marshal of said district, and remain in the care and custody of said marshal, and under his control, until he shall obtain possession by process of law, and the cost of seizure made before process issues shall be taxable by the court: Provided, That when the property so seized may be liable to perish or become greatly reduced in price or value by keeping, or when it cannot be kept without great expense, the owner thereof, the collector, or the marshal of the district, may apply to the assessor of the district to examine said property; and if, in the opinion of said assessor, it shall be necessary that the said property should be sold to prevent such waste or expense, he shall appraise the same; and the owner thereupon shall have said property returned to him upon giving bond in such form as may be prescribed by the commissioner of internal revenue, and in an amount equal to the appraised value, with such sureties as the said assessor shall deem good and sufficient, to abide the final order, decree or judgment of the court having cognisance of the case, and to pay the amount of said appraised value to the collector, marshal, or otherwise, as he may be ordered and directed by the court; which bond shall be filed by said assessor with the United States district attorney for the district in which said proceedings in rem may be commenced: Provided further, That in case said bond shall have been executed and the property returned before seizure thereof, by virtue of the process aforesaid, the marshal shall give notice of the pendency of proceedings in court to the parties executing said bond, by personal service or publication, and in manner and form as the court may direct; and the court shall thereupon have jurisdiction of said matter and parties, in the same manner as if When to be sold. such property had been seized by virtue of the process aforesaid. But if said owner shall neglect or refuse to give said bond, the assessor shall issue to the collector or marshal aforesaid an order to sell the same; and the said collector or marshal shall thereupon advertise and sell the said property at public auction in the same manner as goods may be sold on final execution in said district; and the proceeds of the sale, after deducting the reasonable costs of the seizure and sale, shall be paid to the court aforesaid, to abide its final order, decree or judgment.(g) Ibid. 49. Assessment of tions. 62. All the provisions hereinafter made for the delivery of returns, lists, statements and valuations, and for additions to the duty in case of false or fraudulent lists or taxes on corpora- returns, or in case of undervaluation or understatement on lists or returns, or in case of refusal or neglect to deliver lists or returns, and for the imposition of fines, penalties and forfeitures, shall be held and taken to apply to all persons, associations, corporations or companies liable to pay duty or tax; and any additions to duties, fines, penalties or forfeitures hereinafter imposed for failure to perform any duty required to be performed, shall be held and taken to be additional to those herein before provided. Ibid. 251. Act of 1846 to extend to officers of internal revenue. 63. The provisions of the 16th section of the act approved August 6th 1846, (h) entitled "An act to provide for the better organization of the treasury, and for the collection, safe-keeping, transfer and disbursement of the public revenue," are hereby applied to, and shall be construed to include, all officers of the internal revenue, charged with the safe-keeping, transfer or disbursement of the public moneys arising therefrom, (a) The right of the government to the property forfeited is superior to that of a prior mortgagee, out of possession. United States v. Distilled Spirits, 8 Int. R. Rec. 81. 8. c. 1 Am. L. T. Rep. 103. (b) See United States v. Thirty-three Barrels of Distilled Spirits, 16 Am. L. R. 365, and United States v. Quantity of Rags, Ibid. 369, as to the construction of this clause, as originally enacted. When a seizure is made under this section, the burden of proof is upon the claimant of property within the same curtilage. United States v. One Still, 5 Blatch. C. C. 403. (c) The court has power to discharge the property seized, on bond. United States v. Three Hundred Barrels of Whiskey, 1 Ben. 15. See United States v. Lot of Leaf Tobacco, 6 Int. R. Rec. 222. United States v. Quantity of Distilled Spirits, 7 Int. R. Rec. 29. In case of judgment of forfeiture, the claimants are liable for costs. United States v. Seven Barrels Distilled Oil, 8 Int. R. Rec. 162, (d) See United States v. Mattingly, 6 Int. R. Rec. 19. (g) So amended by act 13 July 1866. 14 Stat. 111. and to all other persons having actual charge, custody or control of moneys or accounts 20 June 1864. arising from the administration of the internal revenue. 66 64. All assessors and their assistants, all collectors and their deputies, revenue Ibid. 52. agents," (a) and all inspectors, are hereby authorized to administer oaths and take Power to adminevidence touching any part of the administration of this law with which they are ister oaths. respectively charged, "or" where such oaths and evidence are by law authorized to be taken; and any perjury therein shall be punished in the like manner, and to the same degree, as in the case of perjury committed in proceedings in the courts of the United States. having more 65. Whenever by this act any license, duty or tax of any description has been Ibid. 115. imposed on any person or corporate body, or property of any person, or incorporated Payment of or unincorporated company, having more than one place of business, it shall be lawful duties by persons for the commissioner of internal revenue to prescribe and determine in what district than one place of such tax shall be assessed and collected, and to what officer thereof the official notices business. required in that behalf shall be given, and of whom payment of such tax shall be demanded: Provided, That all taxes on manufactures, manufacturing companies and manufacturing corporations shall be assessed, and the tax collected in the district within which the place of manufacture is located, unless otherwise provided. Ibid. 176. 66. When any tax or duty is imposed by law, and the mode or time of assessment or collection is not therein provided, the same shall be established by regulation of Powers of the the secretary of the treasury. secretary of the former. 67. Where it is not otherwise provided for, it shall be the duty of the collectors, in their respective districts, and they are hereby authorized, to prosecute for the recovery Suits for penalof any sum or sums that may be forfeited; and all fines, penalties and forfeitures which ties and forfeitmay be imposed or incurred shall and may be sued for and recovered, where not other- ures regulated. wise provided, in the name of the United States in any proper form of action, or by any appropriate form of proceeding, before any circuit or district court of the United States for the district within which said fine, penalty or forfeiture may have been incurred, or before any court of competent jurisdiction. And where not otherwise pro- Rights of invided for, such share as the secretary of the treasury shall, by general regulations, provide, not exceeding one moiety nor more than five thousand dollars in any one case, shall be to the use of the person, to be ascertained by the court which shall have imposed or decreed any such fine, penalty or forfeiture, who shall first inform of the cause, matter or thing whereby such fine, penalty or forfeiture shall have been incurred; (b) and when any sum is paid without suit or before judgment, in lieu of fine [penalty] or forfeiture, and a share of the same is claimed by any person as informer, the secretary of the treasury, under general regulations to be by him prescribed, shall determine whether any claimant is entitled to such share as above limited, and to whom the same shall be paid, and shall make payment accordingly. (c) It is hereby declared to be the true intent and meaning of the present and all previous provisions of internal revenue acts granting shares to informers, that no right accrues to or is vested in any informer in any case, until the fine, penalty or forfeiture in such case is fixed by judgment or compromise, and the amount or proceeds shall have been paid; when the informer shall become entitled to his legal share of the sum adjudged or agreed upon and received: (d) Provided, That nothing herein contained shall be con- Remission of strued to limit or affect the power of remitting the whole or any portion of a fine, penalties. penalty or forfeiture, conferred on the secretary of the treasury by existing laws. The Power to comprocommissioner of internal revenue shall be and is hereby authorized and empowered to compromise, under such regulations as the secretary of the treasury shall prescribe, (a) So amended by act 3 March 1865, 1. 13 Stat. 471. (b) The informer's share is due to the person who first informs of the cause, matter or thing, whereby the forfeiture is incurred. United States v. One Hundred Barrels of Whiskey, 6 Int. R. Rec. 179. Ex parte Webster, 9 Int. R. Rec. 137. See United States v. One Hundred Barrels of Distilled Spirits, 8 Int. R. Rec. 20. As between two sets of informers, where the first set gave the information which led to the eventual recovery of the penalties, and the other rendered valuable services, and expended money in collecting evidence, it was held, that the parties who gave the information which induced the prosecution, were entitled to the informer's share. Ex parte Webster, 9 Int. R. Rec. 137. An internal revenue inspector, though the first informer, is not entitled to a share of the forfeiture, where the information was acquired by him in his official capacity: such information belongs of right to the government. United States v. Four Cutting Machines, 9 Int. R. Rec. 145. But an officer of internal revenue may be entitled to a share of the forfeiture, when he makes the discovery incidentally, and not in the direct prosecution or course of his duty. United States v. One Hundred Barrels of Distilled Spirits, 8 Int. R. Rec. 20. United States v. Thirty-four Barrels of Whiskey, 9 Int. R. Rec. 169. The mere fact that the informer obtained the information upon which the judgment of forfeiture was based, while in the discharge of his official duties as assistant assessor, does not bar his right to claim the inform mise. er's share. United States v. Chassell, 9 Int. R. Rec. 177. s. c. 1 Chicago Leg. News 314. (e) The informer is entitled to a moiety of the gross proceeds, under this section. United States v. Hook. 14 Pitts. L. J. 361. United States v. One Still, 6 Int. R. Rec. 59, 67. Under the regnlations of the treasury department, the informer's share is subject to a proportion of the costs and expenses. United States v. Twelve Hundred Barrels of Paraffine Oil, 6 Int. R. Rec 23. But his right becomes fixed, when the proceeds are paid to the marshal, and his share is to be determined by the regulations then in force. Eight Barrels of Distilled Spirits, 1 Ben. 472. His right is an inchoate one, liable to be divested by legislation until final judgment. Twenty-five Thousand Gallons of Spirits, 1 Ben. 367. 8. c. 7 Int. R. Rec. 206. No appeal lies to the court of clains from the decision of the secretary. Dorsheimer v. United States, 7 Wall. 166. (d) The amount of the informer's share is to be determined by the law as it stood at the time of the final decree of forfeiture. Twenty-five Thousand Gallons of Spirits, 1 Ben. 367. Duties recovered on a compromise, after a criminal prosecution, belong wholly to the government. Ex parte Webster, 9 Int. R. Rec. 137. Dorsheimer v. United States, 2 N. & H. 103. As to the informer's rights, where there is a forfeiture by consent, in purenance of a compromise, see United States v. Ninety-five Barrels of Distilled Spirits, 8 Int. R. Rec. 105. 30 June 1864. Jurisdiction. witness. any case arising under the internal revenue laws, whether pending in court or otherwise. (a) The several circuit and district courts of the United States shall have jurisdiction of all offences against any of the provisions of this act committed within their Informer to be a several districts: Provided, That whenever in any civil action for a penalty the informer may be a witness for the prosecution, the party against whom such penalty is Penalty for ex- claimed may be and shall be admitted as a witness on his own behalf. Every person torting money by threats to inform. Who shall receive any money or other valuable thing under a threat of informing, or as a consideration for not informing, against any violation of this act, shall, on conviction thereof, be punished by a fine not exceeding two thousand dollars, or by imprisonment not exceeding one year, or both, at the discretion of the court, with costs of prosecution.(b) Ibid. 180. Penalty for sell ing dutiable arti cles before payment. Ibid. 182. To embrace the territories, &c. 3 March 1865 23. 13 Stat. 483. into the treasury tion. 68. If any person liable and required to pay any tax upon any article, goods, wares, merchandise or manufactures as herein provided, shall sell, or cause or allow the same to be sold, before the tax to which such article, goods, wares, merchandise or manufacture is legally liable is paid, with intent to avoid such tax, or in fraud of the revenue herein provided, any debt contracted in the sale of such article, goods, wares, merchandise or manufactures, or any security given therefor, unless the same shall have been bona fide transferred to the hands of an innocent holder, shall be entirely void, and the collection thereof shall not be enforced in any court. And if any such article, goods, wares, merchandise or manufacture has been paid for, in whole or in part, the sum so paid shall be deemed forfeited, and any person who will sue for the same, in an action of debt, shall recover of the seller the amount so paid, one half to his own use, and the other half to the use of the United States. 69. Wherever the word state is used in this act, it shall be construed to include the territories and the District of Columbia, where such construction is necessary to carry out the provisions of this act. 70. The gross amount of all duties, taxes and revenues received or collected by virtue of the several acts to provide internal revenue to support the government and to pay Duties to be paid the interest on the public debt, and of any other act or acts that may now or hereafter without deduc- be in force connected with the internal revenues, shall be paid by the officers, collectors or agents receiving or collecting the same, daily into the treasury of the United States, under the instructions of the secretary of the treasury, without any abatement or deduction on account of salary, compensation, fees, costs, charges, expenses or claims of any description whatever, anything in any law to the contrary notwithstanding. And all moneys now directed by law to be paid to the commissioner of internal revenue, including those derived from the sale of stamps, shall be paid into the treasury of the United States by the party making such payment; and a certificate of such payment stating the name of the depositor and the specific account on which the deposit was made, signed by the treasurer, assistant treasurer, designated depository or proper officer of a deposit bank, and transmitted to and received by the commissioner of internal revenue, shall be deemed a compliance with the law requiring payment to be made to the commissioner, any law to the contrary notwithstanding: Provided, That in districts where, from the distance of the officer, collector or agent receiving or collecting such duties, taxes and revenues, from a proper government depositary, the secretary of the treasury may deem it proper, he may extend the time for making such payment, not exceeding, however, in any case, the period of one month. Ibid. 24. ing officers. 71. It shall be the duty of such of the collectors of internal revenue as the secretary Duties of disburs of the treasury may direct to act as disbursing agents, to pay the aforesaid expenses, without increased compensation therefor, and to give good and sufficient bonds and sureties for the faithful performance of their duties as such disbursing agents, in such sum and form as shall be prescribed by the first comptroller of the treasury and approved by the secretary.(c) 72. The privilege of purchasing supplies of goods imported from foreign countries for the use of the United States, duty free, which now does or hereafter shall exist by provision of law, shall be extended, under such regulations as the secretary of the treasury may prescribe, to all articles of domestic production which are subject to tax by the provisions of this act. 73. In case any goods or commodities for or in respect whereof any tax is or shall be imposed, or any materials, utensils or vessels proper or intended to be made use (a) See infra 87, 92. (b) So amended by act 13 July 1866, 29. 14 Stat. 145. (c) By act 28 July 1866 2 4, this section is continued in force, and is to be construed as authorizing the disbursement through such agents, of moneys heretofore appropriated, and that may hereafter be appropriated, for the payment of the lawful expenses incident to carrying into effect the various acts relative to the assessment and collection of the internal revenues; and it is provided, that all bonds and obligations heretofore entered into by collectors of internal revenue, as disbursing agents. shall be binding and obligatory upon such collectors and their sureties, as well in respect to moneys which have been or may hereafter be received by said collectors, as such disbursing agents, as to moneys appropriated by the act in the text. 14 Stat. 326. of for or in the making of such goods or commodities, shall be removed, or shall be 13 July 1866. deposited or concealed in any place, with intent to defraud the United States of such Penalty for retax, or any part thereof, all such goods and commodities, and all such materials, uten- moving or concealing dutiable sils and vessels, respectively, shall be forfeited. And in every such case, and in every goods. case where any goods or commodities shall be forfeited under this act, or any other act of congress relating to the internal revenue, all and singular the casks, vessels, cases or other packages whatsoever, containing, or which shall have contained, such goods or commodities, respectively, and every vessel, boat, cart, carriage or other conveyance whatsoever, and all horses or other animals, and all things used in the removal or for the deposit or concealment thereof, respectively, shall be forfeited. And every person who shall remove, deposit or conceal, or be concerned in removing, depositing or concealing any goods or commodities for or in respect whereof any tax is or shall be imposed, with intent to defraud the United States of such tax, or any part thereof, shall be liable to a fine or penalty of not exceeding five hundred dollars. Ibid. 15. 74. The judge of any circuit or district court of the United States, or any commissioner thereof, may issue a search-warrant, authorizing any internal revenue officer to Search-warrants search any premises, if such officer shall make oath in writing, that he has reason to to issue. believe, and does believe, that a fraud upon the revenue has been or is being committed upon or by the use of said premises. Ibid. 16. boxes, &c., fraud ulently marked. 75. In case any person shall sell, give or purchase or receive any box, barrel, bag or any vessel, package, wrapper, cover or envelope of any kind, stamped, branded or Penalty for buymarked in any way so as to show that the contents or intended contents thereof have ing or selling been duly inspected, or that the tax thereon has been paid, or that any provision of the internal revenue laws has been complied with, whether such stamping, branding or marking may have been a duly authorized act, or may be false and counterfeit, or otherwise without authority of law, said box, barrel, bag, vessel, package, wrapper, cover or envelope being empty, or containing anything else than the contents which were therein when said articles had been so lawfully stamped, branded or marked by an officer of the revenue, such person shall be liable to a penalty of not less than fifty nor more than five hundred dollars. And any person who shall make, manufacture or For manufacturproduce any box, barrel, bag, vessel, package, wrapper, cover or envelope, stamped, branded or marked as above described, or shall stamp, brand or mark the same, as herein before recited, shall, upon conviction thereof, be liable to penalty as before provided in this section. And any person who shall violate the foregoing provisions of this section, with intent to defraud the revenue, or to defraud any person, shall, upon conviction thereof, be liable to a fine of not less than one thousand nor more than five thousand dollars, or imprisonment for not less than six months nor more than five years, or both such fine and imprisonment, at the discretion of the court. And all articles sold, given, purchased, received, made, manufactured, produced, branded, stamped or marked, in violation of the provisions of this section, and all their contents, shall be forfeited to the United States. ing the same. stamps to be 76. Where any whiskey, (a) oil, tobacco or other articles of manufacture or produce, Ibid. 17. requiring brands, stamps or marks of whatever kind to be placed thereon, shall be sold On sale of forupon distraint, forfeiture or other process provided by law, the same not having been feited articles, branded, stamped or marked as required by law, the officer selling the same shall, upon affixed. sale thereof, fix or cause to be affixed the brands, stamps or marks so required, and deduct the expense thereof from the proceeds of such sale. 77. No suit shall be maintained in any court for the recovery of any tax alleged to have been erroneously or illegally assessed or collected, until appeal shall have been duly made to the commissioner of internal revenue, according to the provisions of law in that regard, and the regulations of the secretary of the treasury established in pursuance thereof, and a decision of said commissioner shall be had thereon, unless such suit shall be brought within six months from the time of said decision, or within six months from the time this act takes effect: Provided, That if said decision shall be delayed more than six months from the date of such appeal, then said suit may be brought at any time within twelve months from the date of such appeal. "And no suit for the purpose of restraining the assessment or collection of tax shall be maintained in any court." (b) Ibid. 19. Suits for taxes illegally exacted tained, until after appeal to sioner. not to be main the commis Ibid. 59. 78. Any inspector or revenue agent who shall hereafter become interested, directly or indirectly, in the manufacture of tobacco, snuff or cigars, and any assessor, collector, Penalty on reve inspector or revenue agent, who shall hereafter become interested, directly or indirectly, nue officers for being concerned in the production, by distillation or by other process, of spirits, ale or beer or other in the manufac fermented liquors, shall, on conviction before any court of the United States of com- spirits, &c. ture of tobacco, (a) By act of 1868, infra 152, forfeited spirits are to be sold (b) So amended by act 2 March 1867. 14 Stat. 475. 18 July 1866. petent jurisdiction, pay a penalty not less than five hundred dollars nor more than five thousand dollars, in the discretion of the court. And any such officer interested as aforesaid in any such manufacture, at the time this act takes effect, who shall fail to divest himself of such interest within sixty days thereafter, shall be held and declared to have become so interested after this act takes effect. (a) Ibid. 60. Officers to make returns of fees. Ibid. 63. Proceedings in case of seizure of goods liable to forfeiture. Appraisement. Notice. Claimants may give bond. 79. Every internal revenue officer, whose payment, charges, salary or compensation shall be composed, either wholly or in part, of fees, commissions, allowances or rewards, from whatever source derived, shall be required to render to the commissioner of internal revenue, under regulations to be approved by the secretary of the treasury, a statement under oath, setting forth the entire amount of such fees, commissions, emoluments or rewards of whatever nature, or from whatever source received, during the time for which said statement is rendered; and any false statement knowingly and wilfully rendered under the requirements of this section, or regulations established in accordance therewith, shall be deemed wilful perjury, and punished on conviction thereof, as provided in section forty-two of the act of June 30, 1864,(b) to which this act is an amendment; and any neglect or omission to render such statement, when required, shall be punished, on conviction thereof, by a fine of not less than two hundred dollars nor more than five hundred dollars, in the discretion of the court. 80. In all cases of seizure of any goods, wares or merchandise which shall, in the opinion of the collector or deputy-collector making such seizure, be of the appraised value of three hundred dollars or less, and which shall have been so seized as being subject to forfeiture, under any of the provisions of this act, or of any act to which this is an amendment, excepting in cases otherwise provided, the said collector or deputy-collector shall proceed as follows, that is to say: he shall cause a list containing a particular description of the goods, wares or merchandise seized, to be prepared in duplicate, and an appraisement of the same to be made by three sworn appraisers, to be selected by him for said purpose, who shall be respectable and disinterested citizens of the United States residing within the collection district wherein the seizure was made. The aforesaid list and appraisement shall be properly attested by such collector or deputy-collector, and the persons making the appraisement, for which service said appraisers shall be allowed the sum of one dollar and fifty cents per day each, to be paid as other necessary charges of collectors according to law. If the said goods shall be found by such appraisers to be of the value of three hundred dollars or less, the said collector or deputy-collector shall publish a notice, for the space of three weeks, in some newspaper of the district where the seizure was made, describing the articles and stating the time, place and cause of their seizure, and requiring any person or persons claiming them to appear and make such claim within thirty days from the date of the first publication of such notice: Provided, That any person or persons claiming the goods, wares or merchandise, so seized, within the time specified in the notice, may file with such collector or deputy-collector a claim, stating his or their interest in the articles seized, and may execute a bond to the United States in the penal sum of two hundred and fifty dollars, with sureties, to be approved by said collector or deputy-collector, conditioned that, in case of condemnation of the articles so seized, the obligors will pay all the costs and expenses of the proceedings, to obtain such condemnation; and upon the delivery of such bond to the collector or deputycollector, he shall transmit the same, with the duplicate list or description of the goods seized, to the United States district attorney for the district, who shall proceed thereon in the ordinary manner prescribed by law: And provided also, That if there shall be no claim interposed, and no bond given within the time above specified, the collector or deputy-collector, as the case may be, shall give ten days' notice of the sale of the goods, wares or merchandise, by publication; and at the time and place specified in said notice, shall sell the article so seized at public auction, and after deducting the expense of appraisement and sale, he shall deposit the proceeds to the credit of the Remission of for- secretary of the treasury. And within one year after the sale of any goods, wares or merchandise, as aforesaid, any person or persons claiming to be interested in the goods, wares or merchandise so sold, may apply to the secretary of the treasury, for a remis sion of the forfeiture thereof, or any of them, and a restoration of the proceeds of the said sale, which may be granted by the said secretary, upon satisfactory proof, to he furnished in such manner as he shall prescribe: Provided, That it shall be satisfactorily shown that the applicant, at the time of the seizure and sale of the goods in question, and during the intervening time, was absent out of the United States, or in such circumstances as prevented him from knowing of such seizure, and that he did not know of the same; and also that the said forfeiture was incurred without wilful negligence or any intention of fraud on the part of the owner or owners of such goods. If no (a) See infra 88. (b) Supra 57. Sales in default of claim. feiture. |
