Legal Document

361 U.S. 304 80 Supreme Court Reporter 326 4 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 334 UNITED STATES, Petitioner,v.Sydelle PRICE. Number 48. Argued Dec. 9, 1959. Decided Jan. 18, 1960. Mr. Howard Atlantic Heffron, Washington, D.C., for the petitioner. W. Lee McLane, Jr., Phoenix, Ariz., respondent. Justice HARLAN delivered opinion of Court. 1 The brought this action against respondent taxpayer collection a deficiency in taxes year 1946, and statutory interest thereon. defended on ground that could not be maintained because Commissioner Internal Revenue had never issued to notice (commonly known as '90-day letter') amount question. This defense was based § 272(a)(1) Code 1939, 53 Statutes-at-Large 82, amended, 26 Annotated KF65 U5 272(a)(1), providing pertinent part follows: 2 'If case any taxpayer, determines there is respect tax imposed by chapter, authorized send such registered mail. Within ninety days after mailed * may file petition with Tax redetermination deficiency. No assessment chapter no distraint or proceeding court its shall made, begun, prosecuted until has been nor expiration ninety-day period, nor, if filed Court, decision become final. *' 3 Government relied admitted fact executed Treasury Department form waiving restrictions sued for,1 272(d) 1939 Code, 83, said authorize waiver, which provides: 'The at time have right, signed writing Commissioner, waive provided subsection (a) section whole deficiency.' 5 District held waiver effective 90-day letter issued, 272(a) therefore barred action. Appeals affirmed, 263 Federal Reporter, 2nd 382, view contrary decisions First Sixth Circuits,2 we granted certiorari. 359 988, 79 1120, 977. For reasons hereafter stated think below error. 6 We start language 272(d). By terms, right available 'at time,' applicable 'the restrictions' contained 272(a). Those include prohibitions prior mailing letter, less than same relating period following issuance during awaiting 7 Respondent seeks support these provisions should read applying only noting limited waivers deficiency,' asserting deficiency' does come into existence, it were, mailed. reading statute follow from first sentence 272(a)(1): 8 mail.' 9 A deficiency, argued, 'determined' issued. cannot accept fine-spun refinements. plain sense provision contemplates, first, determination, then sending notice. persuasive reason appears artificially engrafting upon terms excessively formal conditions.3 Nor do find force argument determination additional deficiencies one already referred must taken previously determined. 10 Section face letter. similar conclusion follows an examination legislative history relevant enactments. 11 In creating (originally Board Appeals), Congress forum taxpayers obtain 'independent review Revenue's income advance their paying found due.' Old Colony Trust company versus 279 716, 721, 49 499, 501, 73 L.Ed. 918. 274(a) Act 1924, 43 297, 1926, 274(a), 44 55 (the predecessors Code), disabled assessing collecting 60 (later amended 90) thereafter, or, event took appeal within body rendered final decision. However, even though did wish contest Commissioner's before Board, continued accrue original due date seeking run, being thereafter collectible tax. 274(f), 297. 12 To meet situation, 1926 added, 274(d), 56, re-enacted Code. At time, provided, 274(j) predecessor 292 292), filing (d) stop running 30 whichever earlier.4 relation between two sections Act, comparable well, clear: (1) 274(d) (1939 272(d)) '(i)n order permit pay interest,' S.Rep.No. 52, 69th Cong., 1st Sess., Page 27; (2) thereupon permitted assess collect free 272(a)); (3) protected interest, delay assessment, 30-day cutoff 292). 13 can purpose discloses warrant inferring intended without power him issued.5 Yet, will appear, necessary effect respondent's position. Major reliance placed passage Senate Committee Report Act: 14 'In committee recommends bill commissioner tax, but taking away take board.' 27. 15 claims last clause indicating reenacted sanction Board's, now brings Court's, jurisdiction play. passage—the obscurity judicially noted6—so apply question would require holding that, despite remains prerequisite collection. But since, acknowledges, inconceivable ineffective immediately referred, result infer often involving inconsiderable periods delay. Such inference jibe either 'right' gives purposes provisions. Moreover, desired all circumstances, more likely accomplished directly, instance jeopardy assessments. See 279(b), 59 (now 6861(b) 1954 6861(b)). 16 subsequent developments change statute. Several years enactment statute, Ninth Circuit expressed views those formed basis below. Mutual Lumber Poe, 66 904; McCarthy 618. 1938, considered various suggested revisions revenue statutes, House Representatives Subcommittee recommended express repudiation decisions. recommendation adopted, failure act, us acceptance Circuit's non-action affords most dubious foundation drawing positive inferences. Subcommittee's discussion, set out full margin,7 meaning sought derived it. While certain isolated passages so read, what espouse position long-standing interpretation correct, clarification called doubts caused decisions, declined review. 290 706, 54 373, 78 606; 298 655, 56 675, 1381. Whether thought proposal unwise, argues, unnecessary, tell; accordingly, properly drawn act. 17 Finally, are similarly unable recodification settled (for taxable covered Act) expressly authorizing letter,8 reports contain clear statement Congress' existing law. What light is, however, tends favor Government's contentions. new another containing provision, refer amendment 'only material law.'9 argues regarding probably 'material.' Inferences rest slender reed. hazardous intent earlier one. Mine Workers, 330 258, 282, 67 677, 690, 91 884. 18 history, then, call indicated Act. hold given pursuant sections, although fully instrument. 19 Reversed remanded. 20 DOUGLAS, whom STEWART joins, dissenting. 21 Cir., 904, decided 1933, states my correct rule—one early criticized challenged, yet undertake change. & N Immigration Nationality Decisions affirm judgment. Form 870, entitled 'Waiver Restrictions Assessment Collection Deficiency Tax,' part, 'Pursuant and/or corresponding internal laws, hereby waived consent tax:' Associated Mutuals Delaney, 176 179, 182—184, American Law Reports, 896; Moore Cleveland R. Co., 108 656, 658—660. also Roos States, 31 F.Supp. 144, 90 Ct.Cl. 482. supra, page 659, analyzing 271(a) defining 'deficiency.' 88, respects here identical counterpart, part: 'Interest determined assessed paid demand collector, collected rate per centum annum prescribed payment assessed, under 272(d), thirtieth day earlier.' pages 659—660. 183. Even not, give literal language, waive' enable orderly expeditious manner necessarily involved curtail permitting make otherwise possible, Bureau entered cooperative agreements taxpayers. 'It practice long standing endeavor secure agreement proposed internal-revenue agent field investigation, letters preliminaries 272(a), 1936, acts. It further regard valid acts, computing agreed accordance 292, That computed agreement, earlier. great majority cases made procured, thereby making nearly concurrent discovery were required given. 'As (Mutual (904), 906, certiorari denied 6, 1936 (290 606); 618, Apr. (298 1381)), evidence 60- 'Your subcommittee while feeling sufficiently clear, feels compelled, denying certiorari, recommend (Recommendation 47) inserted insure validity provide direct, whether section, writing, conditions, however imposed, immediate proposed. believed furnish unquestionable long-established satisfactorily functioning departmental procedure. conducive settlement controverted issues necessity litigation, retaining his present privilege terminating interest.' Ways Means, Proposed Revision Laws, 75th 3d Pages 53—54. 6213(d) reads (whether issued) Secretary delegate, H.R.Rep. 1337, 83d A405: 'Section 6213. deficiencies; law (b)(3) contains receipt notwithstanding (a).' also, effect, S.Rep. 1622, 573.

Classification Label: 11