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Show MOYLE & WILKINSON Harle Building - Washington, BD. December C. li, 1940. Comnissioner of Internal Revenue, Bureau of Internal Revenue, Washington, D. C. in re: Browning Pile arms Symbols: Company MT: ST: 0TH. air: with At conferences negotiations for District Court of in the Department of Justice in connection settlement of litigation pending in the the United States for the Eastern District of Missouri (Browning Arms Co. v. Thomas J. Sheehan, Collector), representatives of the taxpayer, the Department of Justice and Chief Counsel of the Bureau of Internal Revenue agreed that it would be advisable to arrive, if possible, basis with the understanding that 1932 to September stipulation in to June 30, 1940) excise tax 30th, court 1935) and for it could liabilityon at a mutually acceptable tax for the suit period (June 21, it could the be used sales of be made post suit the subject of a period (October 1, as a basis shotguns 1935 for determining during said period. This memorandum, with attached exhibits, is filed in support of the taxpayer's proposed basis to be considered at the conference arranged to be held in your office of this date. In view of the fact thet neither the Browning Arms Con- pany, nor its parent, the J. M. and #. &. Browning Company, has been since June 30, 1940, a manufacturer, importer, or producer of shotguns, the determination of a mutually acceptable tax basis would doubtless result in an agreement as to the tax liability for the poet suit period and a settlement of the pending litiga- tion. apply It would be to all sales mined to be taxable, understood that the tax basis agreed on would during either of said periods, finally deterwhether by agreement or otherwise. In determining the amount of the proposed assessment for the post suit period, as well ae the assessments made for the suit period, it was found that in some instances there had been included in the sales price, upon which the tax was based, trans-~ portation charges incurred in connection with the shipment of shotguns to the purchaser from the warehouse of the Browning arms Company in St. Louis. your office that counsel would obtain charges that should be excluded under inary to consideration of market price on which the and file an analysis of such Section 3441(a) as prelin- what constitutes the tax should be based. manufacturers ' |
