B-129396, DEC. 19, 1957

B-129396: Dec 19, 1957

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TO THE ATTORNEY GENERAL: REFERENCE IS MADE TO LETTER OF MARCH 27. THE AMOUNT OF THE TAXES REMITTED WAS EXCESSIVE. WE ARE CLOSING OUR FILES ON THIS AND SIMILAR CASES WITHOUT FURTHER ACTION.

B-129396, DEC. 19, 1957

TO THE ATTORNEY GENERAL:

REFERENCE IS MADE TO LETTER OF MARCH 27, 1957, FILE GCD:GHV 77-12 2060, AND ENCLOSURE, RELATIVE TO THE REPORTED INDEBTEDNESS OF WALTER F. LAVALLEY, FOR INCOME TAXES PAID TO THE KINGDOM OF SAUDI ARABIA BY HIS FORMER EMPLOYER, THE FLUOR CORPORATION, LTD., AND LATER ASSIGNED TO THE UNITED STATES UPON REIMBURSEMENT UNDER THE TERMS OF ITS BASIC CONTRACT.

A REEXAMINATION OF THE RECORD IN THIS CASE, AND IN SIMILAR CASES NOW PENDING IN THE CLAIMS DIVISION OF OUR OFFICE, DISCLOSES THAT IN MANY INSTANCES THE CONTRACTOR PAID INCOME TAXES ON BEHALF OF THE FORMER EMPLOYEES WHERE NO APPARENT TAX LIABILITY EXISTED, OR, BECAUSE OF ERRONEOUS COMPUTATIONS, THE AMOUNT OF THE TAXES REMITTED WAS EXCESSIVE.

IN VIEW THEREOF, AND SINCE IT NOW APPEARS DOUBTFUL THAT THE GOVERNMENT WOULD PREVAIL IN THE EVENT THE MATTER BE LITIGATED, AND HAVING REGARD FOR THE SMALL AMOUNTS INVOLVED IN EACH CASE, WE ARE CLOSING OUR FILES ON THIS AND SIMILAR CASES WITHOUT FURTHER ACTION.