Source: https://m.openjurist.org/313/us/289
Timestamp: 2020-01-27 13:43:31
Document Index: 576614693

Matched Legal Cases: ['§ 3', '§ 3183', '§ 3651', '§ 3220', '§ 1661', '§ 3770', 'Art. 1011']

313 U.S. 289 - Royal Indemnity Co v. United States
313 US 289 Royal Indemnity Co v. United States
Power to release or otherwise dispose of the rights and property of the United States is lodged in the Congress by the Constitution. Art. IV, § 3, Cl. 2. Subordinate officers of the United States are without that power, save only as it has been conferred upon them by Act of Congress or is to be implied from other powers so granted. Whiteside v. United States, 93 U.S. 247, 256, 257, 23 L.Ed. 882; Hart v. United States, 95 U.S. 316, 318, 24 L.Ed. 479; Hawkins v. United States, 96 U.S. 689, 691, 24 L.Ed. 607; Utah Power & Light Co. v. United States, 243 U.S. 389, 409, 37 S.Ct. 387, 391, 61 L.Ed. 791; Wilber Nat. Bank v. United States, 294 U.S. 120, 123, 124, 55 S.Ct. 362, 363, 364, 79 L.Ed. 798; cf. United States v. Shaw, 309 U.S. 495, 501, 60 S.Ct. 659, 661, 84 L.Ed. 888; Ritter v. United States, 3 Cir., 28 F.2d 265; United States v. Globe Indemnity Co., 2 Cir., 94 F.2d 576. Collectors of internal revenue are subordinate officers charged with the ministerial duty of collecting the taxes. R.S. § 3183, 26 U.S.C.A. Int.Rev.Code § 3651. Erskine v. Hohnbach, 14 Wall. 613, 616, 20 L.Ed. 745; Harding v. Woodcock, 137 U.S. 43, 46, 11 S.Ct. 6, 7, 34 L.Ed. 580; Moore Ice Cream Co. v. Rose, 289 U.S. 373, 380, 381, 53 S.Ct. 620, 622, 623, 77 L.Ed. 1265. There is no statute in terms authorizing them to remit taxes, to pass upon the claims for abatement of taxes or to release any obligation for their payment. Only the Commissioner, with the consent of the Secretary of the Treasury, is authorized to compromise a tax deficiency for a sum less than the amount lawfully due. R.S. §§ 3220, 3229, 26 U.S.C. § 1661, (26 U.S.C.A. Int.Rev.Code §§ 3770, 3776, 3761); 45 T.R., Art. 1011 (1918 Act); Botany Worsted Mills v. United States, supra, 278 U.S. page 288, 49 S.Ct. page 131, 73 L.Ed. 379; Loewy & Son v. Commissioner, 2 Cir., 31 F.2d 652, 654.
I agree with the Court's judgment that the Collector of Internal Revenue did not have power to release a taxpayer from his obligation to pay, but I am unable to agree with the Court's conclusions on the question of interest. The contract on which the Government's suit rests contained no provision for interest. The state's interest law, according to the holding of the Court, is not controlling. Congress has enacted no law requiring payment of interest and fixing an interest rate on contracts guaranteeing tax payments. Nevertheless, this Court now requires that interest be paid—a judicial requirement which under similar circumstances has been frankly described as 'judicial law-making'. Board of County Commissioners v. United States, 308 U.S. 343, 350, 60 S.Ct. 285, 288, 84 L.Ed. 313.