United States v. Nunnally Investment Co., 316 U.S. 258 (1942)

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United States v. Nunnally Investment Co.

No. 990, October Term, 1940

Argued March 10, 11, 1942
Decided May 11, 1942
316 U.S. 258

CERTIORARI TO THE COURT OF CLAIMS

Syllabus

1. A judgment for a refund of income taxes in a suit against the Collector is not a bar to a later suit against the United States for an additional refund of income taxes for the same year, paid to the same Collector. Sage v. United States, 250 U.S. 33. P. 260.

2. The taxpayer sold all its assets for a consideration consisting of cash and the assumption by the purchaser of certain obligations, including federal taxes for previous years. The purchaser paid part of these taxes in 1920, and the remainder in 1921 and 1922. In determining a deficiency for 1920, the Commissioner used a lower basis of the assets sold than was used by the taxpayer, and included in the selling price the full amount of the taxes which the purchaser had assumed. The taxpayer, having paid, sued the Collector and recovered a refund based upon the Commissioner’s understatement of the basis of the assets sold. Held, that the judgment against the Collector did not bar a suit against the United States claiming further refund on the ground that the taxes assumed by the purchaser which were not paid in 1920 were not taxable as income of that year. Pp. 259, 264.

92 Ct.Cls. 358, 36 F.Supp. 332, affirmed.

Certiorari, 313 U.S. 584, to review a judgment granting a refund of money erroneously collected as income tax.