52 STAT.] 75TH CONG. , 3n SESS.-CH. 2S9-MAY 28, 1938 SEC. 818. TAXES OF INSOLVENT BANKS. Section 22 of the Act of March 1, 1879 (20 Stat. 351; 12 U. S. C. 570), is amended to read as follows: "SEC. 22. (a) Whenever and after any bank or trust company, a sub- stantial portion of the business of which consists of receiving deposits and making loans and discounts, has ceased to do business by reason of insolvency or bankruptcy, no tax shall be assessed or collected, or paid into the Treasury of the United States on account of such bank, or trust company, which shall diminish the assets thereof necessary for the full payment of all its depositors; and such tax shall be abated from such national banks as are found by the Comptroller of the Currency to be insolvent; and the Commissioner of Internal Revenue, when the facts shall appear to him, is authorized to remit so much of the said tax against any such insolvent banks and trust companies organized under State law as shall be found to affect the claims of their depositors. "(b) Whenever any bank or trust company, a substantial portion of the business of which consists of receiving deposits and making loans and discounts, has been released or discharged from its liability to its depositors for any part of their claims against it, and such depositors have accepted, in lieu thereof, a lien upon subsequent earnings of such bank or trust company, or claims against assets segregated by such bank or trust company or against assets trans- ferred from it to an individual or corporate trustee or agent, no tax shall be assessed or collected, or paid into the Treasury of the United States on account of such bank, or trust company, such individual or corporate trustee or such agent, which shall diminish the assets thereof which are available for the payment of such depos- itor claims and which are necessary for the full payment thereof. "(c) Any such tax so collected shall be deemed to be erroneously collected, and shall be refunded subject to all provisions and lim- itations of law, so far as applicable, relating to the refunding of taxes, but tax so abated or refunded after the date of the enactment of the Revenue Act of 1938 shall be reassessed whenever it shall appear that payment of the tax will not diminish the assets as afore- said. The running of the statute of limitations on the making of assessment and collection shall be suspended during, and for ninety days beyond, the period for which, pursuant to this section, assess- ment or collection may not be made, and a tax which has been abated may be reassessed and collected during the time within which, had there been no abatement, collection might have been made. "(d) This section shall not apply to any tax imposed by the Social Security Act." SEC. 819. ABATEMENT OF JEOPARDY ASSESSMENT. (a) Section 273 (c) of the Revenue Act of 1936, the Revenue Act of 1934, the Revenue Act of 1932, and the Revenue Act of 1928, are amended to read as follows: "(c) AMOUNT ASSESSABLE BEFORE DECISION OF BoARD.- The jeop- ardy assessment may be made in respect of a deficiency greater or less than that notice of which has been mailed to the taxpayer, despite the provisions of section 272 (f) prohibiting the determina- tion of additional deficiencies, and whether or not the taxpayer has theretofore filed a petition with the Board of Tax Appeals. The Commissioner may, at any time before the decision of the Board is rendered, abate such assessment, or any unpaid portion thereof, to the extent that he believes the assessment to be excessive in amount. The Commissioner shall notify the Board of the amount of such assessment, or abatement, if the petition is filed with the Board before 579 Insolvent banks. 20 Stat. 351. 12U.S. C. 570. Abatement of taxes if collection would diminish assets for payment ofdepositors. National banks. Banks, etc., under State law. Banks released from liability to depositors. Refund of erroneous collections. Reassessment of tax if assets not dimin- ished. Social Security Act taxes. 49 Stat. 620; 42 U. S. C., Supp. III, ch. 7. Abatement of jeop- ardy assessment. 49 Stat. 1724; 48 Stat. 743; 47 Stat. 235; 45 Stat. 855. 26U.S. C. 273 (c); Supp. III , § 273. Amount assessable before decision of Board. 49 Stat. 1724. 26U.S. C. §272 (f); Supp.III, § 272. Abatement. Notice of amount to Board.
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