Mey Commissioner of Vashington, Internal De 28, 1940 Revenue Os MTIST:ME de Me & M. Ss Browning Compony, Sts Louis, Mos Sirs In Hovember, 1935, there HonorableM, EZ. Hoyt, requést head that you meke a determination (b) of the 1932, entitled revenue to have act you of fix the of wes the the At to settle that with time the sales upon to you tex division, named taxpayer that, above price on the sele of shot guns by the end that you fix such a price, submitted the through a under Seetion which the tax, 619 is based texpayer,should be computed, in Washington, we were siso bureau the contention endeavoring, of Browning Arms Company, & subsidiary of the taxpayer, that it was entitled to & refund of taxes paid on the sale of fire erms made prior to October 1, 1935, the Arms Company contending primerily that the seies in question were not texeble because they were made by it as consignee of the d, , & M, &. Browning Company not on its own behalf, and because the consignor anuracturer, nor the producer, nor the importer The matter was then in suit for refund. and was not the of the arms. Later the Browning Arms “ompeny submitted to the Depertment of dustice en offer to compromise the suit. The offer was recently rejected and, as 4 result, the suit is still »ending. Gise the tax on the Since sale the effective of fire arms, M, 5, Browming SYompany tex upon ds M, and date of the (Section has law imposing 610, Rs A. imported a an ex~- of 1932), consider- able number of shot guns and hes sold them on consignment to the Srowmming Arms Company. ‘The J. M. and M, S. Browning Company has made the tax returns thereon as they became due but has computec péic to the it for the the arma amount sold. which ‘the the Arms Collector of Company has Internal Revenue at St. Louis, Mo,, with whom the returns heave been filed, has been aware of this from the first. It is conceded that all of these sales were taxable, Whether or not the tax has been fully peid will Gepend upon your ection upon the taxpayer's recuest for the fixing of a basis.