708
INTERNAL REVENUE CODE OF 1954
and the time for payment of such tax: Provided, however, That notwithstanding the provisions of this section the tax shall continue to be paid by stamp until the Secretary or his delegate shall, by regulation, provide for the payment of the tax by return. All administrative and penal provisions of this title, insofar as applicable, shall apply to any tax imposed by section 5701. (b) STAMPS TO EVIDENCE THE TAX.—If the Secretary or his delegate
shall, by regulation, require the use of stamps to evidence the tax or indicate compliance with this chapter, the Secretary or his delegate shall cause to be prepared suitable stamps to be issued to manufacturers and importers of articles, to be used and accounted for, in accordance with such regulations as the Secretary or his delegate shall prescribe. (c) U S E OF GOVERNMENT DEPOSITARIES.—The Secretary or his
delegate may authorize Federal Reserve banks, and incorporated banks or trust companies which are depositaries or financial agents of the United States, to receive any tax imposed by this chapter, in such manner, at such times, and under such conditions as he may prescribe; and he shall prescribe the manner, time, and condition under which the receipt of such tax by such banks and trust companies is to be treated as payment for tax purposes. (d) ASSESSMENT.—Whenever any tax required to be paid by this chapter is not paid in full a t the time required for such payment, it shall be the duty of the Secretary or his delegate, subject to the limitations prescribed in section 6501, on proof satisfactory to him, to determine the amount of tax which has been omitted to be paid, and to make an assessment therefor against the person liable for the tax. The tax so assessed shall be in addition to the penalties imposed by law for failure to pay such tax when required: Provided, however, That no such assessment shall be made until and after the person liable for the tax has been afforded reasonable notice and opportunity to show cause, in writing, against such assessment. SEC. 5704. EXEMPTION FROM TAX. (a) TOBACCO
PRODUCTS
FURNISHED
^ FOR EMPLOYEE
U S E OR
EXPERIMENTAL PURPOSES.—Tobacco products may be furnished by
a manufacturer of such products, without payment of tax, for use or consumption by employees or for experimental purposes, in such quantities, and in such manner as the Secretary or his delegate shall, by regulation, prescribe. (b) ARTICLES TRANSFERRED OR REMOVED IN BOND FROM DOMESTIC
FACTORIES.—A manufacturer may transfer articles produced by him, without payment of tax, to the bonded premises of another manufacturer, or remove such articles, without payment of tax, for use of the United States, or for shipment to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, or for consumption beyond the jurisdiction of the internal revenue laws of the United States, in accordance with such regulations and upon the filing of such bonds as the Secretary or his delegate shall prescribe. (c) TOBACCO MATERIALS SHIPPED OR D E L IV E R E D IN B O N D. — A
dealer in tobacco materials or a manufacturer of tobacco products may ship or deliver tobacco materials, without payment of tax, to another such dealer or manufacturer, or to a foreign country, Puerto Rico, the Virgin Islands, or a possession of the United States, in § 5703(a)
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