Document: 361 U.S. 87 80 S.Ct. 144 4 L.Ed.2d 127 COMMISSIONER OF INTERNAL REVENUE, Petitioner,v.Fred N. ACKER. No. 13. Argued Oct. 19, 1959. Decided Nov. 16, Mr. Ralph S. Spritzer, Washington, D.C., for petitioner. Fred Acker, pro se, respondent. Justice WHITTAKER delivered the opinion of Court. 1 This case presents question whether, under Internal Revenue Code 1939, failure a taxpayer to file declaration estimated income tax, as required by § 58,1 not only subjects him addition tax prescribed 294(d)(1)(A) declaration, but also further 294(d)(2) filing 'substantial underestimate' his tax. 2 Section provides, in substance, that if fails make and 'a tax,' within time prescribed, there shall be added an amount equal 5% each installment due unpaid, plus 1% such unpaid installments month except first, exceeding aggregate 10% installments.2 3 294(d)(2), pertinent part, provides: '(2) Substantial underestimate 5 'If per centum (determined without regard credits sections 32 35) * exceeds (increased credits), excess, or 6 which so determined increased, whichever is lesser *.' 26 U.S.C. (1952 ed.) U.S.C.A. 294(d)(2). 29.294—1(b)(3)(A) Treasury Regulation 111, promulgated contains statement that: 7 'In event purposes (§ 294(d)(2)) zero.' 8 Respondent, reasonable cause, failed any years 1947 through 1950. The Commissioner imposed those Tax Court sustained Commissioner's imposition both additions. Appeals affirmed with respect reversed substantial underestimation holding does authorize treatment taxpayer's equivalent estimating no regulation, purports do so, supported statute invalid. 258 F.2d 568. Because conflict among circuits3 we granted petition certiorari. 358 940, 79 346, 348. 9 first primary must decide whether expressed necessarily implied provision language authorizes as, of, zero. 10 We are here concerned taxing Act imposes penalty.4 law settled 'penal statutes construed strictly,' Federal Communications Commission v. American Broadcasting Co., 347 284, 296, 74 593, 601, 98 L.Ed. 699, one 'is subject penalty unless words plainly impose it,' Keppel Tiffin Savings Bank, 197 356, 362, 25 443, 445, 49 790. See, e.g., Tiffany National Bank Missouri, 18 Wall. 409, 410, 21 862; Elliott Railroad 99 573, 576, 292. 11 Viewing light this rule, fail find section effect, its implications look other way. By twice mentioning, predicating application upon, 'the tax' seems contemplate, apply to, cases has been made filed. fact basis means computation where filed would seem settle point beyond all controversy. If had appropriate conveyed thought regulation it thereby have clearly authorized treat at zero and, hence, constituting But nothing therefore, uphold hold may which, course, permit. United States Calamaro, 354 351, 359, 77 1138, 1143, 1394; Koshland Helvering, 298 441, 446—447, 56 767, 769 770, 1268; Manhattan General Equipment Co. Commissioner, 297 129, 134, 397, 399, 528. 12 points Senate Report5 accompanied bill became Current Payment 1943,6 Conference Report7 relating bill, contained was later embodied regulation. He then argues reading 294(d) (2) connection reports becomes evident Congress intended urges us give effect congressional intention he thinks thus disclosed. However, these pertained forerunner now confronted, itself. Bearing mind attempt justify second same omission specifically provided separate very penalty, cannot say legislative history initial enactment persuasive overcome contemplate estimate before can underestimate. 13 next Congress, knowledge several times amended 1939 left unchanged, shows approved should accordingly valid. argument persuasive, presumed knew courts, Court, almost uniformly held filed, invalid.8 immaterial, could add expand impliedly approving 14 These considerations compel conclude questioned therefore regarded 'as more than attempted something there.' supra, page 1143. 15 Affirmed. 16 FRANKFURTER, whom CLARK HARLAN join, dissenting. 17 English courts being decided here. They because recognize relevance explanations meaning course enactment. Parliament desires put gloss on ordinary language, incorporate text legislation. See Plucknett, A Concise History Common Law (5th ed.), 330—336; Amos, Interpretation Statutes, Camb.L.J. 163; Davies, 35 Col.L.Rev. 519; Lord Haldane Viscountiss Rhondda's Claim, (1922) A.C. 339, 383—384. Quite otherwise process statutory construction practiced over decades scores cases. glossator legislatively uses either writing desired meaning, however odd, into taxt enactment, contemporaneously authoritative explanation accompanying statute. most form report defining scope proposed Report acted upon Houses unequivocally representing will joint body. No doubt attribute unlikely phrase simpliciter. chooses expressing purpose use even odd frustrate purpose. Court's task construe English. Our problem what mean, did mean them mean. 'It said when plain resort evidence order raise doubts. That rather axiom experience rule preclude consideration exists.' Boston Sand & Gravel States, 278 41, 48, 52, 54, 73 170. 19 Here kind controversy, user English, meaning. provisions were enacted 1943, c. 120, 57 Stat. 126, additions 294(a) 1939. Report, H.R.Conf.Rep. 510, p. 56, S.Rep.No. 221, 42, gave dealing taxes following gloss: 20 due, revision eight months 63, 58 21, affect provision, continued carry original gloss. While adverts definition, disregards controlling significance.* 22 I agree placed Third, Fifth, Ninth Circuits. Abbott Cir., 1958, 537; Patchen 544; Hansen 585. 58, amended, 'Every individual shall, subsection (d), taxable year (his gross from wages sources reasonably expected exceed stated sums, showing) estimates chapter year, Sections withheld source *; (such) (that) excess (estimated tax) credits) considered year.' 58. 294(d)(1)(A), '(A) Failure declaration. addition, thereof (except first) fraction during remains unpaid. In subparagraph portion installment. For date showing correct reduced 35.' 294(d)(1)(A). After Sixth Circuit rehearing, Third Circuit, 537, Fifth 544, subjected 'addition Less two earlier, too, From beginning litigation involving presented, large majority published opinions District Courts zero, attempts amend extend Ridley, 120 F.Supp. 530, 538; 3, 11; Owen 134 31, 39, modified another sub nom. Knop 234 760; Powell Granquist, 146 308, 312, 252 56; Hodgkinson 57—1 U.S.T.C. 9294; Jones Wood, 151 678; Glass Dunn, 56—2 9840; Stenzel 150 364; Todd 57—2 9768; Erwin 9732, Cranquist, 253 26; Barnwell 164 430. Three way, Palmisano 158 98; Farrow 581; Peterson 141 382; consistently held. Buckley 29 T.C. 455; Garsaud 28 1086, 1090. 1954 eliminated presented respects after January 1, 1955, providing single 6% underpayment, timely pay quarterly installmants ed., Supp. V) 6654, 6654. still live pendency number arose governed Code. Although concedes contends regarded. support distinction ground (1)(A) 5%, installments, represent normal interest rate, whereas, argues, maximum rate compensate Government delayed payment. think unsound, breach duty, characterized language. Each respective itself; such, interest. Moreover, 'addition(s) themselves remainder 292(a), 292(a). S.Rep. 78th Cong., 1st Sess., 42; 1943 Cum.Bull. 1314, 1345. 5(b) introduced what, 1351, 1372. Note 3. essential reliance characterization penalty. adequate justification exists. face indicates nature charge, designed delay receipt funds accurate disclosed owing. Significantly, charge regardless fault, while true shown 'to cause willful neglect.' Had file, imposed. Yet pending final return year. provides definite ascertaining compensation loss funds.

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