Document: 340 U.S. 590 71 S.Ct. 522 95 L.Ed. 560 UNITED STATESv.LEWIS. No. 347. Argued March 2, 1951. Decided 26, Rehearing Denied April 30, See 341 923, 741. Mr. Ellis N. Slack, Washington, D.C., for petitioner. Sigmund W. David, Chicago, Ill., respondent. Justice BLACK delivered the opinion of Court. 1 Respondent Lewis brought this action in Court Claims seeking a refund an alleged overpayment his 1944 income tax. The facts found by are: In tax return, respondent reported about $22,000 which he had received that year as employee's bonus. As result subsequent litigation state court, however, it was decided respondent's bonus been improperly computed; under compulsion court's judgment returned approximately $11,000 to employer. Until payment 1946, at all times claimed and used full unconditionally own, good faith though 'mistaken' belief entitled whole 2 On foregoing Government's position is should not be recomputed, but have deducted loss 1946 return. G.C.M. 16730, XV—1 Cum. Bull. 179 (1936). Claims, relying on its own case, Greenwald v. United States, 57 F.Supp. 569, 102 Ct.Cl. 272, held excess 'under mistake fact' ordered based recalculation year's 91 1017, 1022, 117 336. We granted certiorari, 903, 279, because holding conflicted with many decisions courts appeals, see, e.g., Haberkorn 6 Cir., 173 F.2d 587, principles announced North American Oil Consolidated Burnet, 286 417, 52 613, 76 1197. 3 case we said: 'If taxpayer receives earnings claim right without restriction disposition, has required even may still retain money, adjudged liable restore equivalent.' 424, page 615, Nothing language permits exception merely validity claim. Nor 'claim right' doctrine impaired, stated, Freuler Helvering, 291 35, 54 308, 78 634, or Com'r Wilcox, 327 404, 66 546, 90 752. involved entirely different section Internal Revenue Code, inapplicable here. 43, 311, 634. And supra, receipts from embezzlement did constitute income, distinguishing ground embezzler asserts no 'bona fide legal equitable claim'. 408, 549, 4 Income taxes must paid (or accrued) during annual accounting period. Cf. I.R.C. §§ 41, 42, 26 U.S.C.A. 42; see Burnet Sanford & Brooks Co., 282 359, 363, 51 150, 151, 75 383. interpretation laws long give finality period, now deeply rooted federal system. cases collected Mertens, Law Federal Taxation, § 12.103. reason why depart well-settled results advantage disadvantage taxpayer.1 5 Reversed. DOUGLAS (dissenting). 7 question whether included purposes Plainly right. Some years later, judicially determined then get back money. 8 Many inequities are inherent multiply them needlessly nice distinctions place practical administration law. If were allowed, integrity taxable would violated. when due; government permitted maintain unconscionable can keep after shown made money taxpayer. It suggested more 'equitable' reopen While suggestion might work taxpayer, could adopted general solution because, cases, three-year statute limitations preclude recovery. 322(b), 322(b).

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