Document: 338 U.S. 561 70 S.Ct. 386 94 L.Ed. 346 MANNINGv.SEELEY TUBE & BOX CO. OF NEW JERSEY. No. 70. Argued Nov. 17—18, 1949. Decided Feb. 6, 1950. Mr. Philip B. Perlman, Solicitor General, Washington, D.C., for petitioner. Messrs. George G. Tyler, New York City, Walter J. Bilder, Newark, N.J., respondent. Chief Justice VINSON delivered the opinion of Court. 1 The facts this case have been agreed upon by stipulation. On December 15, 1941, respondent taxpayer, a Jersey corporation, filed corporate tax return its fiscal period, January 1, to September 30, 1941. 12, 1942, Commissioner Internal Revenue assessed tax,1 which timely paid. Respondent was adjudged bankrupt and receiver appointed on July 7, 1943. August 2, 1943, Commissioner, using accelerated procedure applicable in bankruptcy cases,2 deficiencies 1941 taxes with interest from date properly due assessment date.3 2 March 3, 1944, period October showing net operating loss4 that year. This loss, when carried back accordance § 122(b)(1) Code,5 sufficient abate completely respondent's liability then claims refund part had already paid, abatement deficiency interest. abated deficiency, but refused all retaining an amount equal deficiency. 3 sued Collector District Court sustained Collector, holding payment remained obligation even though itself abated. 1948, 76 F.Supp. 937. Appeals reversed, carry-back, wiping out debt must also wiped 172 F.2d 77. Because frequency use carry-back provision Code, we granted certiorari. 1949, 337 955, 69 1531. 4 general statutory scheme presents problem is as follows: As certain taxpayer has duty file previous year pay actually year.6 If erroneously calculated less than due, appropriate particular situation, may assess difference between imposed law shown return.7 Interest at rate six per cent lawfully same time deficiency.8 loss subsequently sustained, be added deductions two taxable years, adjustments those years. are concerned whether validly loss. 5 We hold withheld Collector. subsequent cancellation does not cancel like manner From original until assessed, positive United States: tax. See Rodgers v. States, 1947, 332 371, 374, 68 5, 92 3; States Childs, 1924, 266 304, 309—310, 45 110, 111, 299; Billings 1914, 232 261, 285—287, 34 421, 425—426, 58 596. For failure owed, funds rightfully should possession States. fact statute permits avoid no way indicates derive benefits intervening period. In absence clear legislative expression contrary, question who possess right money owed Government it answered favor Government. 6 It apparent inspection Code Congress intended became due. Several sections prescribe penalties additions negligence fraud.9 A files payment.10 Even request authorizes extension payment, paid extension.11 And assesses he date.12 7 enactment 1942 did change policy requiring prompt payment. section afford taxpayers opportunity present purposes realistic, balanced picture their profits losses. add one Report Senate Committee Finance states purpose relief cases where maintenance upkeep expenses were deferred peacetime years because wartime restrictions. S.Rep. 1631, 77th Cong., 2d Sess. 51—52 (1942). But there indication encourage cease taxes. Report, explaining operation provision, states, 'A entitled or unused excess credit * will able determine deduction account such close future sustains credit. He therefore his without regard deduction, claim succeeding carry-back.' 1631 123 124. (Italics added.) can imagine clearer Congressional understanding intent interpreted deferring delaying 8 Although true many equivalent de novo determination tax, our conclusion retroactively alter full promptly amply supported 3771(e) Code.13 That section, integral prohibits claiming clear, therefore, intend basic policy: lawful 9 To sustain contention would place premium conform diligently law. receive while obey mandate prohibited having cannot approve result. 10 Any other interpretation inconsistent structure amended 4(a) Tax Adjustment Act 1945, 59 Stat. 519, now §§ 3779 3780 Code. Prior power authorize, taxes, charged cent.14 1945 passed improve cash position allowing them defer current payments if reasonable chance these returned business losses, speed up H.R.Rep. 849, 79th 1st 1—6 (1945); Joint Taxation Rep. 6—9 (1945). Under corporation filing preceding obtain obtained expects suffer, filed, diminish, At year, file, under 3780, application tentative readjustment including quick deferred. take advantage provisions absolved 3779(i) expressly provides three Again contemplates subsumes interim payments. 11 argued unfair, allegedly discriminating against whose 272(a)(1), more customary '90-day letter' procedure. usual notify intends him. allowed ninety days petition redetermination alleged restrained assessing any decision becomes final. Nor determines Section 292(a), providing deficiencies, 'Interest determined shall *.' argument interest, and, further urged, normally arrive result into consideration redetermination. Therefore, assessed. 12 principal case, however, yet reported. validity challenged throughout litigation. Thus, comparable situation instant be, if, before claimed, confronted Commissioner. see reason why method assessment, others authorized statute, different figure unclaimed Whether language requires claimed attempted considered us record. procedure, previously 13 places great reliance principle 'interest accretion tax,' referred support deal compromises incorrectly outset, not, here, correctly such, they persuasive contrary 14 Two administrative rulings15 1918, 40 1057, cited opposed need distinguish regulations decisions. rulings relating twenty-five ago, repeated quarter-century, force conclude impart construction provision. 15 remainder points raised court below respondent, foregoing reasons accord judgment reversed affirmed. 16 Reversed. 17 DOUGLAS took case. included income defense No presented correctness Int.Rev.Code, 274(a), 26 U.S.C.A. 274(a): 'Upon adjudication proceeding appointment receivership State Territory Columbia, (together additional amounts, provided law) respect chapter shall, despite restrictions 272(a) assessments immediately theretofore trustee give notice writing receiver, running limitations making suspended 30 after received Commissioner; suspension sentence Claims amounts presented, law, pending, pendency proceedings inpursuance Court; receiver.' Deficiencies both normal Further 21, 1944. amounted $82.66, whereas August, totaled $4,430.68. feel possible attributable timing little effect might do consider factor. record bare refund. 294(b), 294(b). urge decide applicability City Saper, 336 328, 554, held circumstances terminated bankrupt. view revested title assets June 4, major month, could significant disposition hand. Int.Rev.Code 122(a), 122(a): 'As used term 'net loss' means over gross income, exceptions, additions, subsection (d).' 122(b)(1), 122(b)(1): 'If beginning 31, each operated similarly U.S.C. 710, 728, 729, 729 (1946). entire 1940, 54 975, repealed 568. 52(a), 53(a), 56(a), 56(a). quarterly installments. 56(b), 56(b). 271(a), 271(a). 292(a). E.g., 291(a), 293(a), (b), 293(a, b). 294(a)(1), 294(a)(1). 56(c)(1), 295, U.S.C.A 295. 3771(e), 3771(e): overpayment inclusion computing adjustment Court, whichever earlier; *' 56(c), L.O. 1115, II—2 Cum.Bull. 221 (1923); I.T. 1447, I—2 220 (1922).

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