A-26370, JUNE 4, 1937, 16 COMP. GEN. 1050

A-26370: Jun 4, 1937

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THOSE OFFICERS AND THE COMPANY INVOLVED ARE ADVISED OF THE APPLICATION BY THE GENERAL ACCOUNTING OFFICE OF AN AMOUNT OTHERWISE DUE THE COMPANY IN PART LIQUIDATION OF THE INDEBTEDNESS. WAS INDEBTED TO THE UNITED STATES IN THE AMOUNT OF $12. A COPY OF THE SETTLEMENT SHOWING THE ACTION TAKEN IN THE MATTER WAS FORWARDED TO THE CLAIMANT AND AGAIN BY LETTER DATED OCTOBER 22. WAS ADVISED THAT THE AMOUNT OF $175.80 HAD BEEN SET OFF AGAINST THIS INDEBTEDNESS "LEAVING THE SUM OF $12. THE SET-OFF WAS REPORTED TO THE SOLICITOR OF THE TREASURY ON OCTOBER 19. THE DEPARTMENT OF JUSTICE WAS INFORMED OF THE SET-OFF MADE IN THE CASE IN LETTER OF MAY 1. THIS ADVICE WAS ACKNOWLEDGED ON MAY 5. 900 "IN COMPROMISE OF THE GOVERNMENT'S CLAIM" WAS ACCEPTED AUGUST 11.

A-26370, JUNE 4, 1937, 16 COMP. GEN. 1050

COMPROMISES - REFUND OF AMOUNT PREVIOUSLY WITHHELD IN PART LIQUIDATION OF INDEBTEDNESS WHERE, AFTER REPORT OF THE INDEBTEDNESS OF A COMPANY TO THE PROPER GOVERNMENT OFFICERS WITH A RECOMMENDATION FOR SUIT TO RECOVER THE AMOUNT DUE THE UNITED STATES, THOSE OFFICERS AND THE COMPANY INVOLVED ARE ADVISED OF THE APPLICATION BY THE GENERAL ACCOUNTING OFFICE OF AN AMOUNT OTHERWISE DUE THE COMPANY IN PART LIQUIDATION OF THE INDEBTEDNESS, AN OFFER "IN COMPROMISE OF THE GOVERNMENT'S CLAIM," MADE AND ACCEPTED APPROXIMATELY FOUR YEARS AFTER SAID APPLICATION, MAY NOT BE VIEWED AS AUTHORIZING REFUND OF THE AMOUNT TAKEN INTO ACCOUNT IN FIXING THE INDEBTEDNESS EXISTING AT THE TIME OF THE COMPROMISE.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE EAGLE INDEMNITY COMPANY, JUNE 4, 1937:

THERE HAS BEEN RECEIVED YOUR LETTER OF MAY 11, 1937, RELATIVE TO A CLAIM FOR $175.80 IN CONNECTION WITH INCOME TAXES FOR THE TAXABLE YEAR 1930.

THE RECORDS OF THIS OFFICE SHOW THAT BY LETTER DATED FEBRUARY 5, 1932, THIS OFFICE NOTIFIED THE SOLICITOR OF THE TREASURY THAT THE EAGLE INDEMNITY CO. WAS INDEBTED TO THE UNITED STATES IN THE AMOUNT OF $12,500 AND RECOMMENDED SUIT TO RECOVER THE AMOUNT DUE. BY SETTLEMENT DATED SEPTEMBER 9, 1932, THIS OFFICE APPLIED THE SUM OF $175.80, OTHERWISE DUE THE COMPANY AS REFUND OF INCOME TAX--- THE CLAIM NOW PRESENTED FOR CONSIDERATION--- AGAINST AN INDEBTEDNESS OF THE COMPANY, THEREBY REDUCING THE INDEBTEDNESS TO $12,324.20. A COPY OF THE SETTLEMENT SHOWING THE ACTION TAKEN IN THE MATTER WAS FORWARDED TO THE CLAIMANT AND AGAIN BY LETTER DATED OCTOBER 22, 1932, THE EAGLE INDEMNITY CO. WAS ADVISED THAT THE AMOUNT OF $175.80 HAD BEEN SET OFF AGAINST THIS INDEBTEDNESS "LEAVING THE SUM OF $12,324.20 DUE THE UNITED STATES.' THE SET-OFF WAS REPORTED TO THE SOLICITOR OF THE TREASURY ON OCTOBER 19, 1932, AND, ALSO, THE DEPARTMENT OF JUSTICE WAS INFORMED OF THE SET-OFF MADE IN THE CASE IN LETTER OF MAY 1, 1936. THIS ADVICE WAS ACKNOWLEDGED ON MAY 5, 1936. UNDER DATE OF AUGUST 14, 1936, THE DEPARTMENT OF JUSTICE REPORTED TO THIS OFFICE THAT AN OFFER OF $1,900 "IN COMPROMISE OF THE GOVERNMENT'S CLAIM" WAS ACCEPTED AUGUST 11, 1936.

IT WILL BE SEEN FROM THE FOREGOING THAT AT THE TIME OF THE OFFER IN COMPROMISE THE CLAIMANT AND THE DEPARTMENT OF JUSTICE WERE FULLY INFORMED AS TO THE AMOUNT OF THE INDEBTEDNESS OF THE UNITED STATES, $12,324.20, AND THAT IT HAD BEEN SO FIXED FOR A PERIOD APPROXIMATING 4 YEARS. THE OFFER IN COMPROMISE, THEREFORE, MUST HAVE BEEN OF THE AMOUNT OF THE GOVERNMENT'S CLAIM AT THE TIME OF COMPROMISE AND THE COMPROMISE CANNOT BE VIEWED AS AUTHORIZING REFUND OF AMOUNTS ALREADY TAKEN INTO ACCOUNT IN FIXING THE INDEBTEDNESS AND ACCOUNTS SO STATED FIXED FOR APPROXIMATELY 4 YEARS, WITH FULL AND SPECIFIC NOTICE TO ALL PARTIES. THERE WAS NO AUTHORITY IN ANYONE TO REOPEN SUCH STATED ACCOUNTS.

UPON THE RECORD AS PRESENTED AT THIS TIME IT MUST BE HELD THAT THERE IS NO BASIS FOR REFUNDING THE $175.80 APPLIED SOME 4 YEARS PAST AGAINST THE INDEBTEDNESS OF THE CLAIMANT TO THE UNITED STATES. THEREFORE, YOUR CLAIM MUST BE AND IS DISALLOWED.