Section 32
SEC. 32. Section 295 of the National Internal Revenue Code is hereby amended to read as follows: “Sec. 295. Authority of the Commissioner to compromise, abate, and refund/credit taxes. The Commissioner may “(1) Compromise the payment of any internal revenue tax when “(a) A reasonable doubt as to the validity of the claim against the taxpayer exists; or “(b) The financial position of the taxpayer demonstrates a clear inability to pay the assessed tax. “(2) Abate or cancel a tax liability, when “(a) The tax or any portion thereof appears to be unjustly or excessively assessed; or “(b) The administration and collection costs involved do not justify the collection of the amount due. “All criminal violations may be compromised except: (a) those already filed in court, and (b) those involving fraud. “The Commissioner of Internal Revenue may delegate his power to compromise internal revenue cases, to the Deputy Commissioners and the Regional Directors, subject to such limitations and restrictions as may be imposed under rules and regulations to be promulgated for the purpose. “(3) Credit or refund taxes erroneously or illegally received, penalties imposed without authority, refund the value of internal revenue stamps when they are returned in good condition by the purchaser, and, in his discretion, redeem or change unused stamps that have been rendered unfit for use and refund their value upon proof of destruction. No credit or refund of taxes or penalties shall be allowed unless the taxpayer files in writing with the Commissioner a claim for credit or refund within two years after the payment of the tax or penalty.”