Document: 356 U.S. 38 78 S.Ct. 511 2 L.Ed.2d 568 HOOVER MOTOR EXPRESS CO., INC., Petitioner,v.UNITED STATES of America. No. 95. Argued Jan. 29 and 30, 1958. Decided March 17, Rehearing Denied April 14, See 934, 770. Mr. Judson Harwood, Nashville, Tenn., for petitioner. Sol. Gen. J. Lee Rankin, Washington, D.C., respondent. Justice CLARK delivered the opinion Court. 1 The sole issue here—the deductibility tax purposes1 fines paid by a trucker inadvertent violations state maximum weight laws—is identical to one issues decided today in Tank Truck Rentals, Inc., v. Commissioner, 507. Most overweight petitioner during 1951 1953 inclusive, years question, were incurred Tennessee Kentucky, two nine States which operated. During relevant period, both Kentucky imposed limitations 42,000 pounds overall 18,000 per axle,2 considerably less than those other seven States. Petitioner's resulted largely from axle-weight limits rather truck limits. District Court found that such usually occurred because shifting freight load transit. 3 After paying taxes imposed, sued refund, claiming no frustration policy would result allowance deductions (1) had not been willful, (2) all reasonable precautions taken avoid violations. held even if acted innocently precautions, frustrate clearly defined policy. Judgment was entered 135 F.Supp. 818, Appeals affirmed on same reasoning. 241 F.2d 459. We granted certiorari, 1957, 354 920, 77 1376, 1435, conjunction with grant 507, Commissioner Internal Revenue Sullivan, 27, 512, today. 4 Wholly apart possible policy, it does appear payment question 'necessary' operation petitioner's business. This, course, prevents any deduction. Deputy du Pont, 1940, 308 488, 60 363, 84 L.Ed. 416. transit, but there is nothing record indicate could have controlled merely tying down or compartmentalizing trucks. Other relied stated bill lading when picking up goods small communities having weighing facilities. It seem this situation alleviated carrying scale truck. 5 Even assuming due care without willful intent, clear deduction sought severely directly supra. As Truck, statutes involved here do differentiate between innocent violators. 6 Affirmed. '§ 23. Deductions gross income. 'In computing net income shall be allowed as deductions: '(a) Expenses. '(1) Trade business expenses. '(A) In general. All ordinary necessary expenses taxable year trade * *.' 53 Stat. 12, amended, 56 819, 26 U.S.C.A. § 23(a)(1)(A). Ky.Rev.Stat., 1953, 189.222; Williams' Tenn.Code, 1934 (1952 Cum.Supp. 1943 Repl.Vol.), 1166.33.

Category: 11