State Of New York et al v. Mnuchin et al

Filing 47

DECLARATION of Owen T. Conroy in Support re: 44 CROSS MOTION for Summary Judgment .. Document filed by State Of Connecticut, State Of New York, State of Maryland, State of New Jersey. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Exhibit 3, # 4 Exhibit 4, # 5 Exhibit 5, # 6 Exhibit 6, # 7 Exhibit 7, # 8 Exhibit 8, # 9 Exhibit 9, # 10 Exhibit 10, # 11 Exhibit 11, # 12 Exhibit 12, # 13 Exhibit 13, # 14 Exhibit 14, # 15 Exhibit 15, # 16 Exhibit 16, # 17 Exhibit 17, # 18 Exhibit 18, # 19 Exhibit 19, # 20 Exhibit 20, # 21 Exhibit 21, # 22 Exhibit 22, # 23 Exhibit 23, # 24 Exhibit 24, # 25 Exhibit 25, # 26 Exhibit 26, # 27 Exhibit 27, # 28 Exhibit 28, # 29 Exhibit 29, # 30 Exhibit 30, # 31 Exhibit 31, # 32 Exhibit 32, # 33 Exhibit 33, # 34 Exhibit 34, # 35 Exhibit 35, # 36 Exhibit 36, # 37 Exhibit 37, # 38 Exhibit 38, # 39 Exhibit 39, # 40 Exhibit 40, # 41 Exhibit 41, # 42 Exhibit 42, # 43 Exhibit 43, # 44 Exhibit 44, # 45 Exhibit 45, # 46 Exhibit 46, # 47 Exhibit 47, # 48 Exhibit 48, # 49 Exhibit 49, # 50 Exhibit 50, # 51 Exhibit 51, # 52 Exhibit 52, # 53 Exhibit 53, # 54 Exhibit 54, # 55 Exhibit 55, # 56 Exhibit 56, # 57 Exhibit 57, # 58 Exhibit 58, # 59 Exhibit 59, # 60 Exhibit 60, # 61 Exhibit 61, # 62 Exhibit 62, # 63 Exhibit 63, # 64 Exhibit 64, # 65 Exhibit 65, # 66 Exhibit 66, # 67 Exhibit 67, # 68 Exhibit 68, # 69 Exhibit 69, # 70 Exhibit 70, # 71 Exhibit 71, # 72 Exhibit 72, # 73 Exhibit 73, # 74 Exhibit 74, # 75 Exhibit 75, # 76 Exhibit 76, # 77 Exhibit 77, # 78 Exhibit 78, # 79 Exhibit 79, # 80 Exhibit 80, # 81 Exhibit 81, # 82 Exhibit 82, # 83 Exhibit 83, # 84 Exhibit 84, # 85 Exhibit 85, # 86 Exhibit 86, # 87 Exhibit 87, # 88 Exhibit 88, # 89 Exhibit 89, # 90 Exhibit 90, # 91 Exhibit 91, # 92 Exhibit 92, # 93 Exhibit 93, # 94 Exhibit 94, # 95 Exhibit 95, # 96 Exhibit 96, # 97 Exhibit 97, # 98 Exhibit 98, # 99 Exhibit 99, # 100 Exhibit 100, # 101 Exhibit 101, # 102 Exhibit 102, # 103 Exhibit 103, # 104 Exhibit 104, # 105 Exhibit 105, # 106 Exhibit 106)(Conroy, Owen)

Exhibit 47

58 STAT.]

21

78rm CONG., 2D 8E88.--OHS. 80, 03--FEB, 22, 25t 1944

District of Columbia, and owner of lot 816, square 50, on the northwest corner of Twenty-second and M Streets Northwest and lessee
of all of lots 10 11 12, 18 and 14 in square 86 all on te east side
of 'Twenty-fourih treet orthwest, between V and N Streets, and
all of lots 15, 16, 807, 808 and 809 in square 86, all on the south side
of N Street Northwest, between Twenty-third and Twenty-fourth
Streets, leased from an affiliated corporation, and all in the District
of Columbia, its successors or assigns to lay down, construct, maintain, and use not more than three ipe lines for a pneumatic tube
system from a point within said lot 81, square 50, through connecting
public alleys, across Twenty-third Street Northwest, through a connecting alley to a point within said lot 10, square 36.
SEo. 2. (a) The construction and use of such pipe lines shall be
under such regulations and rentals as the Commissioners of the
District of Columbia may prescribe and all plans and specifications
for such construction shall be subject to their approval.
(b) The Commissioners of the District of Columbia shall have
full authority to designate the location and to cause such repairs or
relocation of such pipe lines as the public necessity may require, any
such repairs or relocation to be at the expense of the Bureau of
National Affairs, Inc., its successors or assigns..
(c) Any repairs to streets, highways, or other public property
necessitated by construction or alterations of such pipe lines shall
be made in a manner approved-by the Commissioners of the District
of Columbia, at the expense of the Bureau of National Affairs, Inc.,
its successors or assigns.
SEO. 8. No permission granted or enjoyed under the provisions of
this Act shall vest any right, title or interest in or to the land within
any public alleys or Twenty-third Wtreet Northwest.
Sxo. 4. The right to alter, amend, or repeal this Act is expressly
reserved.
Approved February 22, 1944.
[CHAPTER 63]

AN ACT
To provide revenue, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United State8 of America in Conrees assemblid, That (a) SnOnuT
Trrz,.-This Act, divided into titles and sections according to the
following Table of Contents, may be cited as the "Revenue Act of
1948":

R~qulsttons and

Location and re-

palma.

Property rights.

Febrr 21944
(Publio LAw 23M)

Revenue Act of 1943.

[In the following table, a section number enclosed In parentheses following the
description of the subject matter of a section, subsection, or paragraph of this Act
Indicates each provision of the Internal Revenue Code amended by such section, as Btat., Part 1.
20 U.5. 0.,*26
subsection, or paragraph of this Act]
U.Sa. 0.0 suip. Fil.
TABLE OF CONTENTS
Po P*2.
Tirrn I-INDIVIDUAL AND CORPORATION INCOME TAXE8 AND WrrBRoLDINo or TAx
AT SOUCE ON WAGES '
See. 101.
Taxable years to which amendments applicable.
See. 102.
Alternative tax on individuals with gross Income from certain
sources of less than $8,000 (se. 400).
(a)
In general (see. 400).
Technical amendment: Optional tax inapplicable to citizen en*
(b)
titled to benefits of section 251 (see. 404).
See. 108.
Determination of status for purposes of personal exemption
and credit for dependents (sec. 25 (b) (8)).
Reduction of credits in case of short year limited to jeopardy
Se. 104.
(see. 47 (e)).

PUBLIC LAWS-I. 63--FEB. 25, 1944

22
Sec. 105.
sec. 106.
See. 107.
Sec. 108.
See. 109.

(a)
(b)
(a)
(b)
(c)
(a)
(b)
(a)
(b)

Sec. 110.
See. 111.
Sec. 112.
See. 118.
Sec. 114.
Sec. 115.
Sec. 110.
Sec. 117
See. 118
Sec. 119

(a)
(b)
(a)
(b)
(c)
(a)
(b)

(a)
(b)
(a)
(b)
(a)
(b)
(c)

(a)
(b)
(c)
See. 120 1.
(a)
(b)
(c)
See.121 .a
(a)
(b)
(c)
(d)
(e)
See. 122 L
Sec.123
(a)
(b)
Sec. 124L
(a
(b)
(0)
(d)
(e)

U

[58 STAT.

Returns of income (sec. 51 (b)).
Determination of status (sec. 51 (t)).different taxable years
Joint returns where spouses have
(sec. 51 (b)).

Victory tax.
Change in rate (see. 450).
Repeal of credits against Victory tax (see. 453).
Technical amendments seese. 456 and 34).
Repeal of earned Income credit.
In general (secs.25 (a), 47 (d), and 185).
Earned Income from sources without United States (sec. 116
(a)).
Certain fiscal year taxpayers.
In general (sec. 108).
Taxable years to which applicable.
Exclusion from gross income of mustering-out pay of members
of armed forces (sec. 22 (b) (14)).
Last-in, first-out inventory.
In general (see. 22 (d) (6)).
Effective date.
Denial of deduction for Federal excise taxes not deductible
under section 23 (a) (see. 28 (M)).
Deduction for losses on securities in affiliated corporations.
Stock losses (sec. 23 (g) (4) (B)).
Bond losses (see. 23 (k) (5) (B)).
Taxable years to which applicable.
Partially worthless bad debts.
In general (sec. 28 (k)).
Years to which applicable.
Corporate contributions to veterans' organizations (see. 28
(q)).
Special deduction for blind (see. 23).
Credit for dividends paid on preferred stock of public utilities.
Dividends unpaid and accumulated (see. 26 (h) 26(1)). (2)).
(h)
Stock issued to replace existing securities (see.
organizations exempt from taxation.
Returns by
In general (see. 54).
Years to which applicable.
Penalties in connection with estimated tax.
In general (see. 204).
Technical amendment (sec. 60 (b)).
Taxable years to which applicable.
Back pay attributable to prior years.
In general (see. 107 (d)).
Technical amendment (sec. 107).
Taxable years to which applicable. In certain corporate liquiElection as to recognition of gain
dations.
In general (sec. 112 (b) (7)).
Basis (sec. 118 (a) (18)).
Effective date.
Reorganization of certain Insolvent corporations.
Nonrecognition of gain or loss on certain reorganizations
(see. 112 (b) (10)).
in
Recognition of gain or loss of security holders 112 connection
(1)).
(see.
with certain corporate reorganizations
Basis (se. 113 (a) (6) and (21)).
Technical amendments (sees. 112 and 718).
Effective date.
Reorganization by adjustment of capital structure prior to September 22,1938 (sec.118 (a)).
Gain from sale or exchange of property pursuant to orders of
Federal Communications Commission.
In general (sec. 112 (M)).

Taxable years to which applicable.
Percentage depletion for flake graphite, vermiculite, potash,
beryl, feldspar, mica, tale, lepidolite, barite, and spodumene.
In general (sec.114 (b)).
Discovery value (sec. 114 (b)).
(b)).
Definition of gross income from the property (see. 114 1948.
depletion for flake graphite retroactive to
Percentage
Termination of percentage depletion for certain minerals.

amem

Sec. 12.

Sec. 126.

(a)
(b)

Sec.e27

(a)
(c)

(b)
See. 1.c

(a)
(b)
(c)
See. 180.
(a)
(b)
Sec. 131.
Sec. 132.
See. 183. (a)
Sec 184.
See.185.

(a)
(b)
(b)
(C)

See. 136.
See. 182.

Exclusion from gross income of certain cost-of-fiving allowances
paid to civilian officers and employees of the Government sta*
tioned outside continental United States.
In general (see. 116).
Taxable years to which applicable.
Nonrecognition of loss on certain railroad reorganizations
made retroactive to 1939.
Amendment of section 112 (b) (9) (se. 112 (b) (9)).
Amendment of section 118 (a) (20) (see. 118 (a) (20)).
Amendment of section 142 (d) of the Revenue Act of 1942.
Gain or lose upon the cutting of timber.
In general (sec. 117 (k)).
Technical amendment (sec. 117 (3) (1)).
Effective date.
Acquisitions to evade or avok income or excess profits tax.
In general (see. 129).
Technical amendment (see. 45).
Taxable years to which applicable.
Disallowance of certain deductions attributable to businem
operated by individual at loss for five years.
In general (sec. 130).
Effective date of amendment.
Technical amendments relating to foreign tax credit.
LAmit on credit (see. 181 (b)).
Taxes of foreign subsidiary (see. 181 (f)).
Taxable years to which applicable.
Extension of consolidated returns privilege to certain corporations (see. 141 (e)).
Nonresident aliens brought into United States under authority
of War Manpower Commission (sec. 148 (b)).
Relief in the case of excess deductions of estates and trusts.
In general (see. 162 (d)).
Effective date.
Trusts for maintenance or support of certain beneficiaries.
Income for benefit of grantor (sec. 167).
Taxable years to which applicable.
Mutual fire insurance companies issuing perpetual policies.
Taxability under section 204 (see. 204.(a)).
Grossincome (sec. 204 (b) (1)).
Dividends (sec. 204 (C) (11)).

Nontaxability under section 207 (see. 207 (a)).
Real estate; bond premium and discount (see. 207 (c) and (d)).
Taxable years to which applicable.
Treaty obligations.
Status for withholding at source on wages (see. 1622 (h) (1)).

Trrzxj II-EOcas PROFITs TAX AND Posr-WAB REFUnD

Or

ExcEs8 PRowrs TAX

PART I-EXOESS PROFITS TAX AMENDMENTS

See. 201.
Sec. 202.
(a)

Sec. 203,

Sec. 204.
Sec. 205.

(b)
(a)
(C)
(b)
(C)

Sec. 205,
Sec. 207.

0

28

7ra CONG., 2D SESS.-OIL 68-FEB. 25,1944

SoJTAT.J

(a)
(b)

Taxable years to which amendments applicable.
Increase in excess profits tax rate.
In general (see. 710 (a) (1)).
Technical amendment relating to public utilities (see. 710 (a)
(1) (B)).
Credit for income subject to excess profits tax In special cases
(see. 26 (e)).
Certain fiscal-year taxpayers.
Computation of tax for taxable years beginning in 1948 and
ending in 1944 (sec. 710 (a) (6)).
Computation of tax for taxable year beginning In 1941 and
endingaftter June 80,1942 (see. 710 (a) (8)).
Taxable years to which applicable.
Increase In specific exemption.
In general (sec. 710 (b)(1)).
Return requirement (sec. 720 (b) (2)).
Consolidated returns (sec. 141 (c)).
Reduction of excess profits credits based on invested capital
in certain brackets (sec. 714).
Publicity of relief granted under section 722.
In general (see. 722).
Taxable years to which applicable.
Strategic minerals.
In general (sec. 781).
Taxable years to which applicable.

IN4 go I&

24

PUBLIC LAWS--CH. 68-FEB. 25, 1944
Sec. 208.
a)
b)

(1)
(2)
(8)

(c)

:(d)
'(e)
See. 209.

(f)

[58 STAT.

Nontaxable income of certain industries with depletable
resources.
Technical amendment (see. 785).
Definitions.
Definition of "lessor", "natural gas company", etc. (see. 785 (a)
(1), (2), (8), (4),and (5) ).
Definition of "timber block" (see. 785 (a) (8)).
Definition of "unit net income" (sec. 785 (a) (12)).
Nontaxable income (sec. 785 (b)).
Application where excess profits credit computed under income
credit (sec. 711 (a) (1)).
Application where excess profits credit computed under invested
capital credit (sec.711 (a) (2)).
Retroactive effect of amendments affecting resources.
Exempt corporations (sec. 727 (h)).
PAr I1-POST-WAR REFUND OF EXCESS PRoMS TAX

Sec. 250.

Sec. 251.

(a)
(b)
(C)
(d)
(e)
(f)
(g)
(a)
(b)
(c)

POd p.60

Post-war refund of excess profits tax.
Credit In case of fiscal year beginning in 1941 and ending after
June 80, 1942 (sec. 780 (a)).
Transfers to successors of taxpayer (sec. 780 (c)).
Exemption of proceeds of bonds from tax (sec. 780 (d)).
Rights and liabilities of successor (sec. 780 (f) and (g)).
Effect of refunds (sec.781 (b)).
Limitation on post-war credit (see. 781 (d)).
Taxable years to which applicable.
Technical amendment to credit for debt retirement.
In general (see. 788 (b) (2)).
Taxable years to which applicable.
Election with respect to prior taxable years.
Trrua III-ExoIsE TAxEs

Slee. 801.
Sec. 802.

(a)
(b)

Sec. 803.

(1)
(2)
(8)

See. 80.
sec. 80M.
See. 306.
Sem. 807.

(a)
(b)
(a) (1)
(2)
(8)
(4)
(5)
(6)
(7)

Effective date of Title III.
Increases In rates.
In general (chapter 9A).
Effective date or period of certain Increases,
Cabaret tax.
Billiard and pool tables and bowling alleys.
Telegraph, telephone, radio, and cable facilities.
Persons making fur articles from pelts furnished by customer
(se.. 2401).
Suspension of manufacturers' excise tax on luggage (sec.
84a(a) (2)).
Exemption of billiard and pool tables In hospitals from tax.
In general (sec. 8268 (a))
Effective"date.
Technical amendment of manufacturers excise tax on tires
andInner tubes (e. 8400).
Termination of certain governmental excise tax exemptions.
Tax-free sales under chapter 19 (see. 2406 (a)).
Tax onpistols and revolvers (sec. 2700 (b) (1)).
Tax on firearms, shells, and cartridges (sec. 84).
Tax on electrical energy (sec. 8411 (c)).
Tax-free sales under chapter 29 (sec. 8442).
Credits and refunds of taxes Imposed by chapter 29 (see. 844
(a) (8) (A)
())
Tax on telegraph, telephone, radio, and cable facilities (sec.
8466(a)).

(8) Tax on transportation of persons

(sec. 84(f

eTax
on transportation of property (sec. 847(b).
(b)
Period with respect to which applicable(secs. 2406 (a),g8411
(c)Tand8 t (8)e).
(2) Relating to articles enumerated In section 8S404
8) Relating to amendment of section 844 (a) (8) (A) ().
(4) Relating to amendment of section 8466 with respect to taxes
mposedbysection8465 (a)(1).
5) Relating to amendments of Section 8469 (f ) (1).
Definition of lldate of the termination of hostilities In the prs.
ent war".
6o)
Authorization of exemptions by Secretary of Treasury with re
aspect to articles or services purchased for the exclusive use of
theUnited States.

Sec. 808.

(a)

(b)

(c)

Sec. 810.
&e8110

Sec. 401.
See. 402.
See. 403.
Sec. 404.
Sec. 405.
See. 406.
Sec. 407.
Sec. 408.

(a)
(b)

Sec. 409.()
Sec. 410.

(a)
(b)

Floor stocks taxes.
Distilled spirits (se. 2800).
Fermented malt liquors (sec. 8150).
Wines (sec. 8194).
Drawback on distilled spirits.
Distilled spirits exported (see. 2887).
Ditilled spirits used in manufacture of certain nonbeverage
products (sec. 8250 (1) (5)).
Distilled spirits with respect to which applicable.
Time of eligibility for draw-back with respect to distilled
spirits used in manufacture of certain nonbeverage prodnets (sec. 8250 (1) (1)).
Time for filing claim for draw-back with respect to distilled
spirits used prior to effective date of title III of Act.
Exemption of silver-plated flatware from tax on Jewelry (see.
2400).
.
Repeal of manufacturers' excise tax on vacuum cleaners (see.
8406 (a) (8)).
Tria IV-PosTAL RATzs
Effective date of Title IV.
First class mail.
Increase in rate for local delivery.
Increase in rate for air mail.
Increase in rate for fourth class mail.
Increase In rate for money orders.
Increase In fees for registered mail.
Increase In fees for insured mail.
Receipts on registered mail and Insured mal
Collect-on-delivery service.
In general.
Effecting delivery upon changed terms.
Demurrage on collect-on-delivery parcels.
Additional fee for delivery of registered, Insured, and collect*
on-delivery mail to addressee only.
Termination of increases.
,In general.
Definition of term "termination of hostilities In the present
war".

Tria V-MIsoCm..ANEous EsTAT TAX AND GIrT TAx AMENDMENTS, AND OTEM
MIsCELLANEous AMENDMENTs AND ProVisIONs
Sec. 501.
Valuation of unlisted stock and securities for estate taik pur.
See. 502.
(a)
(b)
See. 5

See. 505
(a

(bc

Sec. 508.
See.W500.
Sec. 510.

poses (see. 811 (k)).
Certain discretionary trusts in connection withgift tax.
Amendment of Internal Revenue Code (see. 1000).
Amendment of the Revenue Act of 1982.
Interest on overpayments.

Use of commissioners In cases before The Tax Court of the
United States (see. 1114).

See. 50.

See. 507.

25

78r CONG., 2D SESS.--OI. 68-FEB. 25,1044

58 STAT.]

a)
b)
(a)
(b)

Retroactivity of seven-year statute of limitations relating to
'bad debts.
Extension of time in connection with release of powers of
appointment.
Repeal of certain provisions of the Current Tax Payment Act
of 1948 relating to Increased income.
In general.
Technical amendments.
Effective date.
Importation of standard newsprint.
In generaL
Effective date.
Exemption from tax on playing cards exported for use of

armed forces.
In general (see. 1880).

Effective date.
Retroactive effect of section 169 of Revenue Act of 1942.
In generaL

Certain transferees.

Capital gains and losses under declared value excess profits tax
In general (sec. 602).
Taxable years to which applicable.

pb4 .0

bAd, p.,71.

26

PUBLIC LAWS-HC.
See. 511.

(C)

Sec. 512.
(a)

See. 518.

(b)

(b)

63-FEB. 25, 1944

[58 BTAT'

Disclaimed legacies passing to charities (secs 812 (d) and
861 (a) (8)).
Deduction in case of citizens and residents (sec. 812 (d)).
Deduction in case of nonresidents not citizens (see. 861 (a)
(8)).
Estates with respect to which amendments applicable.
Distributions by personal holding companies (see. 115 (a)).
In general (see. 115 (a)).
Effective date.
Period of limitations In case of related taxes under chapters 1
and 2 (see. 8807).
In general (sec. 8807).
Taxable years to which applicable.

TEiLE VI-FEEBAL UNEMPLOYMENT TAXES

PON, p.70,

Credits against Federal unemployment taxes (see. 1001).
Credit against Federal unemployment taxes for years 1936 to
1942.

Sec. 601.

See. 602.

TrrLE VII-RmEOTIATIoN

Poo, p. 78.

See. 701.

a)

(b)
(c)
(d)

or WAn CoNTRAeTs

Renegotiation of war contracts.
Terms used.
Amendment to section 403 of the Sixth Supplemental National
Defense Appropriation Act, 1942.
Technical amendments (see. 8806).
Effective date of amendments to section 403 of the Sixth Supplemental National Defense Appropriation Act, 1942.
TiE VIII-REPRICING OF WAR CONMACTS

Pod, p.92.

Repricing of war contracts.
Effective date.

Sec. 801.
See. 802.
Pogo, p. 0&

TrrLE IX-SOCIAL SEQuOrr T AXES

Sec. 001.

Automatic increase in 1944 rate not to apply.
(a)
(b)

See. 902.

(lh) Aor

Amendment to clauses (1) and (2) of section: 1400 of Federal

Insurance Contributions Act.
Amendment to clauses (1) and (2) of section 1410 of Federal
Insurance Contributions Act.
Appropriations to the trust fund.

AMENDATORY OF INTERNAL REvENUE CoDE.-Except as

otherwise expressly provided, wherever in this Act an amendment is
expressed in terms of an amendment to a chapter, subchapter, title, sup-

63 SAt, Part 1.
2 U. . 0.; 2
U. S. 0., Bupp. III.

plement, section, subsection, subdivision paragraph, subparagraph, or
clause, the reference shall be considered to be made to a provision of
the Internal Revenue Code.
(c) MEANING or TERMs U8E.-Except as otherwise expressly provided, terms used in this Act shall have the same meaning as when
used in the Internal Revenue Code.

TITLE I-INDIVIDUAL AND CORPORATION INCOME TAXES AND WITHHOLDING OF TAX AT
SOURCE ON WAGES
SEC. 101. TAXABLE YEARS TO WHICH AMENDMENTS APPLICABLE.

Except as otherwise expressly provided, the amendments made by
this title shall be applicable only with respect to taxable years begm.
ning after December 31, 1943.
SEC. 102. ALTERNATIVE TAX ON INDIVIDUALS WITH GROSS INCOME
FROM CERTAIN SOURCES OF LESS THAN $3,000.
U. 8..
Supp.
i)'m, e2A47.
n 400 (relating to optional tax) Is
GENElad.--soll

88 Stat. 889.

(a) In

amended to read as follows: