Document: 357 U.S. 63 78 S.Ct. 1079 2 L.Ed.2d 1165 Walter W. FLORA, Petitioner,v.UNITED STATES of America. No. 492. Argued May 20, 1958. Decided June 16, Petition for rehearing pending, see 79 112. Mr. Randolph Thrower, Atlanta, Ga., the petitioner. John N. Stull, Washington, D.C., respondent. Chief Justice WARREN delivered opinion Court. 1 The issue in this case is whether a taxpayer must pay full amount an income tax deficiency before he may challenge its correntness by suit refund under 28 U.S.C. § 1346(a)(1), U.S.C.A. 1346(a)(1). During 1950 petitioner suffered losses on sale certain commodities and futures. He reported them as ordinary losses, but Commissioner Internal Revenue characterized capital losses. A assessment was levied $28,908.60, including interest. Petitioner made two payments that totaled $5,058.54, then submitted claim amount. disallowed. On Aug. 3, 1956, brought action refund. United States moved to dismiss want jurisdiction failure state upon which relief could be granted. district judge held because had not paid 'should maintain' action. Because question been resolved Court Appeals, however, deemed it advisable pass merits, doing so entered judgment defendant States. 142 F.Supp. 602, 604. Appeals Tenth Circuit vacated remanded with instructions dismiss, holding complaint 'failed claim' entire period question. 246 F.2d 929, 931.1 We granted certiorari, 355 881, 150, 112, resolve conflict between decision Bushmiaer v. States, 8 Cir., 230 146.2 3 pertinent jurisdictional statute, reads follows: 4 '(a) courts shall have original jurisdiction, concurrent Claims, of: 5 '(1) Any civil against recovery any internal-revenue alleged erroneously or illegally assessed collected, penalty claimed collected without authority sum excessive manner wrongfully laws * *.' (Emphasis supplied.) In matters statutory construction duty give effect intent Congress, our first reference course literal meaning words employed. principle strict waivers sovereign immunity, Michel, 282 656, 51 284, 75 L.Ed. 598, sharp division among lower language suggest presence ambiguity what might otherwise termed clear authorization sue 'any sum.' Consequently, thorough consideration relevant legislative history required. 6 Section 1346 originally enacted 1310(c) Act 1921.3 Its essential seems copied from R.S. 3226, predecessor present claim-for-refund 26 (Supp. V) 7422(a), 7422(a). Those statutes use identical appearing above provide no 'tax,' 'penalty,' 'sum' maintained until similar has sought Secretary his delegate.4 ascribed statute provides key Congress intended when used provision. 7 19 July 13, 1866, provided should court appeal duly commissioner internal revenue *.'5 'appeal' empowered 'remit, refund, back' all taxes penalties improperly collected.6 When requirement restated 3226 Revised Statutes,7 added 'penalty' clauses, bringing together time three-way survives revisers left indication significance, if any, attached addition. formative legislation suits immunity. Tax litigation took form assumpsit collector. See City Philadelphia Diehl, Wall. 720, 18 614.8 Such were subject provision 1866 they preceded Commissioner. command, later became eventually, amended, considered Cheatham 92 85, 23 561. There, response appeal, set aside taxpayer's 1864 directed local assessor make second one. sued collector failing failed comply hence right careful statement remedies available taxpayers who contest correctness their tax: 9 'So also department, we allows appeals tothe revenue; and, dissatisfied decision, paying party can collector; money exacted, will him judgment, pledges herself pay. 10 '* While free remonstrance allowed within departments finally general government wisely payment claimed, customs revenue, condition precedent resort whom assessed. If compliance (that six months Commissioner's decision) requires aggrieved money, do it. cannot, after rendered him, protract own delay money. It honor orderly conduct promptly paid, drawbacks speedily adjusted; rule prescribed class cases neither arbitrary nor unreasonable. 11 'The objecting take appeal. can, delayed beyond twelve months, rest decision; commence at period. So, once, months. *'9 added.) 12 From carefully dictum unmistakably understood require This understanding scheme appears prevailed succeeding fifty sixty years. never suggested addition clause beginning sum' effected change. decided made, gave 'condition precedent' spoke already abrogated Congress. Consistent understanding, there does appear single 1940 attempted Government due. opinions occasion comment extent are consistent declaration,10 continued cited approval day.11 necessity 13 Since now consideration, employs full-payment developed, requiring would more established language. Furthermore, situation respect 1346(a)(1) enacted, express purpose enactment, subsequent expressions congressional rpeserved. 14 1921.12 At suable District Courts. 1887 Tucker claims less than $10,000 'founded law *,'13 included obtain taxes. Emery, Bird, Thayer Realty Co., 237 28, 35 499, 59 825. cast broadest terms, clearly applied cases, related prior assumed equally applicable. For amounts excess limitation invoke old remedy 15 complementary nature impaired re-emphasized personally. office successor deceased maintained. Smietanka Indiana Steel 1921, 257 1, 42 66 99. Senator Jones New Mexico interrupted floor debate 1921 call attention decision. view meant particular dead suing bring Claims. extra expense inconvenience litigating Claims carried proposed amendment, stating: 16 'What here providing where died claimant simply brings about equitable prevents having suffer hardships through accident death I offer amendment remedying situation.'14 17 accepted further comment, conferred Court, 'Concurrent proceeding, commenced passage act laws, even exceeds $10,000, such tax, penalty, proceeding commenced.'15 amendment's narrow-stated refutes suggestion expand restate As seen, Courts Act, change terms other forth. 1346(a) (1), merely remove special sued. Lowe Bros. Co. 304 302, 305, 58 896, 897, 82 1362. House Conference Report contemporary Treasury Department declaration confirm statute's effect.16 20 similarity leaves doubt amended 1318 1921.17 fact many years collector, avowed cure inadequacy combine persuasive indications declared supra. 21 created Board 1924,18 demonstrated only Committee proposing bill explained 22 committee recommends establishment additional income, excessprofits, war-profits, estate Although may, thereof thus secure judicial determination questions involved, not, section 3224 Statutes, prohibits enjoin collection taxes, tax. incomplete remedy, little hardship occasioned incorrect assessment. large received several previous have, since receipt, either wiped out invested non-liquid assets, spent, sometimes forces into bankruptcy, often causes great financial sacrifice. These results remedied permitting payment. entitled liability payment.'19 argues 'hardship' alleviate inability whole tax—for concludes right—but Government's power collect balance due while progress. But quoted demonstrates concerned prelitigation payment, post-litigation collection. Old Colony Trust Revenue, 279 716, 721, 49 501, 73 918.20 24 final step evolvement place 30, 1954,21 removed eliminated being office. Far indicating allow due, shows requirement, narrow way inconsistent requirement. states: 25 permit greater opportunity residence recover feel collected. done removing imposed suits.'22 explaining goes point petition however,' continues, 'elect thereafter exacted.'23 27 foregoing study room contention broad alter 'pay litigate later.'24 reinforced restraining tax.25 More recently, care except operation Federal Declaratory Judgments controversies 'with taxes.'26 To ameliorate produced these requirements Cognress adjudicated advance create hybrid contends. part-payment necessary benefit too poor individual Where expired, some reason desirable, instances work hardship. grow whose successive revisions attempt alter, amelioration required matter 29 affirmed. 30 Affirmed.** 31 WHITTAKER, believing 146; Sirian Lamp Manning, 123 776, 138 A.L.R. 1423, Coates 111 609, properly apply involved followed, reverse below. Suhr 81. cf. 1423. 776; 609. Bendheim Commissioner, 214 26, 28; Elbert Johnson, 164 421, 423—424. Stat. 311. 7422(a): 'No authority, credit filed delegate, according provisions regard, regulations delegate pursuance thereof.' note 7, infra. 152. 111. (1) (2) (3) 3226. practically giving refunding powers. 111, 3220. category dates back 1863 Act. 729. third 1864. 239. rounded three categories adding second. An examination discloses additions. Initially depended diversity jurisdiction. Collector Hubbard, 272. Later 'all arising 629(4). With slight modification 24(5) Judicial Code, 36 1092, 1340, presently 1340. pages 88—89. Kings County Savings Institution Blair, 1886, 116 200, 205, 353, 356, 657 ('No (and) unless therefor law.'); Pollock Farmers' Loan & 1895, 157 429, 673, 700, 39 759 (dissenting opinion) ('The same authorities (including case) proper course, illegal taxation, protest notice suit, officer it.'); Dodge Osborn, 1916, 240 118, 120, 275, 276, 60 557 statute. *'); E.g., Phillips 283 589, 595, 608, 611, 1289; Jefferson Electric Mfg. 291 386, 395—396, 54 443, 446—447, 859; Dobson 320 489, 496, 64 239, 244, 88 248. 505, 1346(a)(2), 1346(a)(2). 61 Cong.Rec. 7506—7507. 7507. interest suits. Ibid. 1925 'is office.' 43 972. H.R.Rep.No.486, 67th Cong., 1st Sess. 57; II—1 Cum.Bull. 224, 225. 314. substituted 'claim credit' formerly referred 336. H.R.Rep.No.179, 68th 7. Senate Finance explanation. S.Rep.No.398, 8. independent review Revenue's found Before 1924 payment.' 68 589. H.R.Rep.No.659, 83d 1. Id., 2. And S.Rep.No.115, Allen Regents University System Georgia, 439, 456, 980, 988, 1448 (concurring opinion). 475 (1867), re-enacted 3224, force 7421, 7421. 1027, 2201, 2201. S.Rep.No.1240, 74th 11. **

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