Rev. Rul. 55-153

SECTION 1. PURPOSE

The purpose of this Revenue Ruling is to transfer to District Directors of Internal Revenue certain duties, functions, and responsibilities with respect to the compromise of narcotics, smoking opium, and marihuana liabilities under the Internal Revenue laws.

SEC. 2. AUTHORITY

The establishment of standards prescribed in this Revenue Ruling is being done pursuant to the authorities contained in Reorganization Plan No. 26 of 1950, effective July 31, 1950 (15 F.R. 4935, 64 Stat. 1280), Reorganization Plan No. 1 of 1952, effective March 14, 1952, Treasury Department Order No. 150-25, dated June 1, 1953, and Treasury Department Order No. 180, dated November 17, 1953.

SEC. 3. SCOPE

The provisions of this Revenue Ruling will apply to:

1. Any internal revenue taxes relating to narcotics, smoking opium, and marihuana;

2. Any ad valorem penalties or interest imposed by law for delinquency in registration or delinquency in payment of these taxes; or

3. Any criminal liability incurred through delinquency in registration or delinquency in payment of these taxes.

SEC. 4. COMPROMISE CASES-INVESTIGATED

District Directors of Internal Revenue will have investigative jurisdiction over offers in compromise coming within the scope of this Revenue Ruling, as outlined in Section 3.

SEC. 5. COMPROMISE CASES-NOT INVESTIGATED

.01 No investigations will be conducted by District Directors of offers in compromise of criminal cases which do not come within the scope of Section 3 of this Revenue Ruling, except upon the specific request of the District Supervisor of Narcotics. If offers are submitted as the result of negotiations by the District Supervisor of Narcotics, the District Directors will deposit and record the remittances and forward the original Forms 656 Offers in Compromise or 656-C, Offers in Compromise (Deferred Installment Payments) to the National Office, Attention O:A:C, without Form 879, Schedule of Offers in Compromise, for transmittal to the Commissioner of Narcotics.

.02 The procedure described in this section will likewise be applicable to any case in which an offer is made in compromise of civil liability compromisable by the Commissioner of Internal Revenue and of criminal liability compromisable by the Commissioner of Narcotics, who jointly exercise the authority to compromise.

SEC. 6. INFORMAL CONFERENCE AND APPEAL

The informal conference procedures and the procedures relating to appeals to the Assistant Regional Commissioner (Appellate), applied in certain cases, as set forth in Revenue Ruling 117, C.B. 1953-1, 498, will not be employed or available with respect to cases coming within the scope of this Revenue Ruling.

SEC. 7. EFFECT ON OTHER DOCUMENTS

Revenue Ruling 117, C.B. 1953-1, 498, is hereby amplified to the extent inconsistent herewith