B-123688, MAY 16, 1956

B-123688, MAY 16, 1956

TO MR. RUSSELL C. HARRINGTON, COMMISSIONER, BUREAU OF INTERNAL REVENUE:

THERE IS ENCLOSED FOR YOUR CONSIDERATION AND APPROPRIATE ACTION A LETTER DATED JANUARY 21, 1956, WITH ENCLOSURE, FROM DORIS TEAGER CODY, R.R. NO. 1, COUNCIL BLUFFS, IOWA, FOR INTEREST ON AN AMOUNT DUE HER ON HER 1945 INCOME TAX REFUND.

THE RECORDS SHOW THAT CHECK NO. 2,232,645, DATED MARCH 22, 1946, FOR $64.70, WAS DRAWN ON THE TREASURER OF THE UNITED STATES TO THE ORDER OF BETTY TAGUE CURRY OF 3035 9TH AVENUE, COUNCIL BLUFFS, IOWA, BY E. J. BRENNAN, SYMBOL 210. THE NAME OF THE INTENDED PAYEE DORIS TEAGUE CODY, WAS PROPERLY SCHEDULED FOR PAYMENT BY THE DES MOINES, IOWA, OFFICE OF THE BUREAU OF INTERNAL REVENUE. HOWEVER, THE CHECK AS TO THE PAYEE'S NAME AND ADDRESS WAS NOT DRAWN AS SCHEDULED, HAVING BEEN ERRONEOUSLY DRAWN BY THE DISBURSING OFFICER TO THE ORDER OF BETTY TAGUE CURRY. BY LETTER FROM THE CLAIMS DIVISION OF OUR OFFICE DATED OCTOBER 19, 1950, ADDRESSED TO THE COLLECTOR OF INTERNAL REVENUE, POST OFFICE BOX 1337, DES MOINES, IOWA, INFORMATION WAS REQUESTED AS TO WHAT ACTION HAD BEEN TAKEN TO ADJUST THE ERRONEOUS PAYMENT. BY LETTER OF OCTOBER 26, 1950, REFERENCE CL:HEB SCHED IT-W 62097, FROM E. H. BIRMINGHAM, COLLECTOR, DES MOINES, IOWA, IT WAS STATED THAT:

"FOR THE REASON THAT OUR OFFICE RECORDS SHOW THE RESPECTIVE REFUNDS WERE SCHEDULED CORRECTLY, WE HAVE NOT, NOR WILL NOT, ATTEMPT TO ADJUST THE ERRONEOUS PAYMENT. IT WOULD SEEM THAT THE DISBURSING OFFICER IN KANSAS CITY, MISSOURI, SHOULD COLLECT THE AMOUNT THEY ERRONEOUSLY ISSUED TO BETTY TAGUE CURRY, $64.70, AND TAKE STEPS TO ISSUE A CORRECTED CHECK TO THE CLAIMANT IN THIS MATTER, DORIS TEAGER CODY. * * *"

SUBSEQUENT THERETO COLLECTION IN FULL WAS MADE FROM THE WRONG PAYEE, BETTY TAGUE CURRY. A LETTER DATED SEPTEMBER 8, 1954, FROM THE CLAIMS DIVISION OF OUR OFFICE WAS ADDRESSED TO THE CHIEF DISBURSING OFFICER, DIVISION OF DISBURSEMENT, TREASURY DEPARTMENT, ROOM 400 SLOANE BUILDING, WASHINGTON 25, D.C., REQUESTING INFORMATION WHETHER SETTLEMENT HAD BEEN EFFECTED BY THAT OFFICE AND, IF NOT, WHETHER IT WAS THE DESIRE OF THAT OFFICE THAT THE GENERAL ACCOUNTING OFFICE EFFECT SETTLEMENT WITH THE INTENDED PAYEE. BY LETTER OF JANUARY 19, 1955, FROM J. F. CANNON, CHIEF DISBURSING OFFICER, REFERENCE FC:SS:CB, WE WERE ADVISED THAT NO ADJUSTMENT OF THE UNDERPAYMENT TO DORIS TEAGER CODY HAD BEEN EFFECTED EITHER BY THE DIVISION OF DISBURSEMENT OR THE INTERNAL REVENUE SERVICE AND THAT SETTLEMENT SHOULD BE EFFECTED BY THE GENERAL ACCOUNTING OFFICE WITH THE INTENDED PAYEE. PURSUANT TO OUR SETTLEMENT OF DECEMBER 21, 1955, A CHECK IN THE AMOUNT OF $64.70 WAS ISSUED TO DORIS TEAGER CODY, THE INTENDED PAYEE OF THE ORIGINAL CHECK. THE PAYEE ACKNOWLEDGES RECEIPT OF THE NEW CHECK AND IS MAKING CLAIM FOR INTEREST FOR 10 YEARS.

THE PROVISIONS OF THE INTERNAL REVENUE CODE PERTAINING TO INTEREST ON REFUNDS OF OVERPAYMENTS OF INTERNAL REVENUE TAXES, 26 U.S.C.A. 6406, ARE AS FOLLOWS:

"IN THE ABSENCE OF FRAUD OR MISTAKE IN MATHEMATICAL CALCULATION, THE FINDINGS OF FACT IN AND THE DECISION OF THE SECRETARY OR HIS DELEGATE UPON THE MERITS OF ANY CLAIM PRESENTED UNDER OR AUTHORIZED BY THE INTERNAL REVENUE LAWS AND THE ALLOWANCE OR NONALLOWANCE BY THE SECRETARY OR HIS DELEGATE OF INTEREST ON ANY CREDIT OR REFUND UNDER THE INTERNAL REVENUE LAWS SHALL NOT, EXCEPT AS PROVIDED IN SUBCHAPTERS C AND D OF CHAPTER 76 (RELATING TO THE TAX COURT), BE SUBJECT TO REVIEW BY ANY OTHER ADMINISTRATIVE OR ACCOUNTING OFFICER, EMPLOYEE, OR AGENT OF THE UNITED STATES.'

SINCE THE RESPONSIBILITY FOR ALLOWANCE OR DISALLOWANCE OF INTEREST ON A TAX REFUND IS BY STATUTE IMPOSED UPON THE COMMISSIONER OF INTERNAL REVENUE THE MATTER IS FORWARDED FOR APPROPRIATE ACTION. SEE OUR LETTER OF OCTOBER 22, 1951, B-105873, TO THE COMMISSIONER, RELATIVE TO THE CASE OF MARGUERITE G. DOZIER, 420 BONNIE BRIAR AVENUE, BIRMINGHAM, MICHIGAN.