CODIFICATION OF INTERNAL REVENUE LAWS (b) CIRCULATION UNDER REDEMPTION IN WHOLE.- -Whenever any bank which has ceased to issue notes for circulation deposits in the Treasury of the United States, in lawful money, the amount of its outstanding circulation, to be redeemed at par, under such regula- tions as the Secretary shall prescribe, it shall be exempt from any tax upon such circulation. (c) CIRCULATION OF INSOLVENT BANKS.- For exemption in case of insolvent banks, see section 3798. SEC. 1902. RETURNS AND PAYMENT OF TAX. (a) CIRCULATION OUTSTANDING.- (1) TIME FOR MAKING RETURN.- A true and complete return of the monthly amount of circulation as aforesaid for the previous six months shall be made and rendered in duplicate on the 1st day of December, and the 1st day of June, by each of such banks. asso - ciations, corporations, companies, or persons, with a declaration an- nexed thereto, under the oath of such person, or of the president or cashier of such bank, association, corporation, or company, in such form and manner as may be prescribed by the Commissioner, that the same contains a true and faithful statement of the amounts sub- ject to tax, as aforesaid; and (2) To WHOM RETURN MADE. -One copy shall be transmitted to the collector of the district in which any such bank, association, corporation, or company is situated, or in which such person has his place of business, and one copy to the Commissioner. (3) CALCULATION AND TIME FOR PAYMENT OF TAX.-The taxes pro- vided in section 1900 (a) shall be paid semi-annually, on the 1st day of January and the 1st day of July; but the same shall be cal- culated at the rate per month as prescribed by said section, so that the tax for six months shall not be less than the aggregate would be if such taxes were collected monthly. (4) RETURN AND PAYMENT WHEN STATE BANK CONVERTED INTO NATIONAL BANK.-W henever any State bank or banking association has been converted into a national banking association, and such na- tional banking association has assumed the liabilities of such State bank or banking association, including the redemption of its bills, by any agreement or understanding whatever with the representa- tives of such State bank or banking association, such national bank- ing association shall be held to make the required return and pay- ment on the circulation outstanding, so long as such circulation shall exceed 5 per centum of the capital before such conversion of such State bank or banking association. (b) CIRCULATION PAID Ourr. -T he amount of circulating notes re- ferred to in section 1900 (b), and of the tax due thereon, shall be re- turned, and the tax paid at the same time, and in the same manner, and with like penalties for failure to return and pay the same, as provided by law for the return and payment of taxes on circulation Imposed by subsection (a) of that section. SEC. 1903. ESTIMATION OF OUTSTANDING CIRCULATION IN DEFAULT OF RETURN. In default of the returns provided in section 1902, the amount of circulation and notes of persons, town, city, and municipal corpora- tions, State banks, and State banking associations paid out, as afore- said, shall be estimated by the Commissioner, upon the best informa- tion he can obtain. SEC. 1904. PENALTY FOR REFUSAL OR NEGLECT TO MAKE RETURN OR PAYMENT. For any refusal or neglect to make return and payment, any bank, association, corporation, company, or person in default as described in the preceding section, shall pay a penalty of $200, besides the addi- tional penalty and forfeitures provided in other casea 208
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