A-20919, DECEMBER 17, 1927, 7 COMP. GEN. 390

A-20919: Dec 17, 1927

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IS AVAILABLE FOR THE PAYMENT OF CLAIMS FOR REFUNDS BASED ON JUDGMENTS OF COURTS WITHOUT COMPLIANCE WITH THE TERMS OF THE FIRST PROVISO OF THE ACT. 000 FROM THE DATE UPON WHICH A REPORT IS MADE OF THE CLAIM TO THE CONGRESSIONAL JOINT COMMITTEE ON INTERNAL REVENUE TAXATION. IS AVAILABLE FOR PAYMENT OF CLAIMS IN EXCESS OF $75. 000 UNTIL AFTER THE EXPIRATION OF SIXTY DAYS FROM THE DATE UPON WHICH A REPORT GIVING THE NAME OF THE PERSON TO WHOM THE REFUND IS TO BE MADE. A SUMMARY OF THE FACTS AND THE DECISION OF THE COMMISSIONER OF INTERNAL REVENUE IS SUBMITTED TO THE JOINT COMMITTEE ON INTERNAL REVENUE TAXATION: THE APPROPRIATION "REFUNDING TAXES ILLEGALLY COLLECTED" IS AVAILABLE FOR PAYMENT OF COURT JUDGMENTS.

A-20919, DECEMBER 17, 1927, 7 COMP. GEN. 390

JUDGMENTS - REFUNDS OF INTERNAL REVENUE TAXES ILLEGALLY COLLECTED THE APPROPRIATION "REFUNDING TAXES ILLEGALLY COLLECTED," MADE BY THE ACT OF FEBRUARY 28, 1927, 44 STAT. 1254, IS AVAILABLE FOR THE PAYMENT OF CLAIMS FOR REFUNDS BASED ON JUDGMENTS OF COURTS WITHOUT COMPLIANCE WITH THE TERMS OF THE FIRST PROVISO OF THE ACT, REQUIRING A DELAY OF 60 DAYS IN THE PAYMENT OF CLAIMS IN EXCESS OF $75,000 FROM THE DATE UPON WHICH A REPORT IS MADE OF THE CLAIM TO THE CONGRESSIONAL JOINT COMMITTEE ON INTERNAL REVENUE TAXATION.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE TREASURY, DECEMBER 17, 1927:

CONSIDERATION HAS BEEN GIVEN TO YOUR LETTER OF DECEMBER 14, 1927 (IT:C:CC -ECW), REQUESTING DECISION WHETHER THE APPROPRIATION FOR "REFUNDING TAXES ILLEGALLY COLLECTED" MADE IN THE ACT OF FEBRUARY 28, 1927, 44 STAT. 1254, IS AVAILABLE FOR PAYMENT OF CLAIMS IN EXCESS OF $75,000 BASED ON JUDGMENTS OF COURTS WITHOUT COMPLIANCE WITH THE FOLLOWING PROVISO CONTAINED IN SAID APPROPRIATION ACT:

* * * PROVIDED, THAT NO PART OF THIS APPROPRIATION SHALL BE AVAILABLE FOR PAYING ANY CLAIM ALLOWED IN EXCESS OF $75,000 UNTIL AFTER THE EXPIRATION OF SIXTY DAYS FROM THE DATE UPON WHICH A REPORT GIVING THE NAME OF THE PERSON TO WHOM THE REFUND IS TO BE MADE, THE AMOUNT OF THE REFUND, AND A SUMMARY OF THE FACTS AND THE DECISION OF THE COMMISSIONER OF INTERNAL REVENUE IS SUBMITTED TO THE JOINT COMMITTEE ON INTERNAL REVENUE TAXATION:

THE APPROPRIATION "REFUNDING TAXES ILLEGALLY COLLECTED" IS AVAILABLE FOR PAYMENT OF COURT JUDGMENTS. SEE 27 COMP. DEC. 442; 2 COMP. GEN. 501.

YOU HAVE FORWARDED COPY OF LETTER FROM THE CHAIRMAN OF THE CONGRESSIONAL JOINT COMMITTEE ON INTERNAL REVENUE TAXATION WHEREIN THE VIEW IS EXPRESSED THAT THE CONGRESS HAD NO INTENTION OF APPLYING THE TERMS OF THIS PROVISO TO CLAIMS BASED ON JUDGMENTS OF COURTS. REFERRING TO THE LANGUAGE OF THE PROVISO ITSELF, THE REQUIREMENT IS MADE THAT THERE BE FURNISHED THE JOINT COMMITTEE "THE DECISION OF THE COMMISSIONER OF INTERNAL REVENUE.' THIS UNQUESTIONABLY REFERS TO THE DECISION ON WHICH THE PROPOSED REFUND IS BASED AND WOULD INDICATE THAT THE PROVISO WAS INTENDED AS A CONTROL OVER ADMINISTRATIVE ACTION ON CLAIMS FOR REFUND OF TAXES IN EXCESS OF $75,000 AND WAS NOT INTENDED TO HAVE ANY APPLICATION TO CLAIMS FOR REFUND WHICH HAVE BEEN ADJUDICATED BY COURT. THIS VIEW IS FURTHER STRENGTHENED FROM AN EXAMINATION OF THE LEGISLATIVE HISTORY OF THE PROVISO. SEE PARTICULARLY THE CONGRESSIONAL RECORD, VOLUME 68, PAGES 3645-3648, 4460-4461, AND 4664- 4671. ACCORDINGLY, YOU ARE ADVISED THAT THE APPROPRIATION FOR "REFUNDING TAXES ILLEGALLY COLLECTED," CONTAINED IN THE ACT OF FEBRUARY 28, 1927, SUPRA, IS AVAILABLE FOR PAYMENT OF CLAIMS IN EXCESS OF $75,000 BASED ON JUDGMENTS OF COURTS WITHOUT COMPLIANCE WITH THE TERMS OF THE FIRST PROVISO THEREOF HEREINBEFORE QUOTED.