Helvering v. Inter-Mountain Life Insurance Co., 294 U.S. 686 (1935)

Helvering v. Inter-Mountain Life Insurance Co.

No. 537

Argued March 5, 7, 1935
Decided April 1, 1935
294 U.S. 686

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE TENTH CIRCUIT

Syllabus

1. Assets reserved by an insurance company against matured unsurrendered and unpaid coupons attached to its twenty-payment life coupon nonparticipating policies held not "reserve funds required by law" within the meaning of § 245(a)(2) of the Revenue Act of 121, allowing deduction of a percentage of the mean of such reserve funds in computing the net income of life insurance companies. P. 690.

2. Reserves against such matured and unsurrendered coupon are not essentially insurance reserves, and the latter alone constitute the base on which the deduction allowed by § 245(a)(2) is to be computed. P. 690.

3. The rule that ambiguities in tax statutes are to be resolved in favor of the taxpayer has no application to provisions for deductions; they are allowable only when plainly authorized. P. 689.

71 F.2d 962 reversed.

Certiorari, 293 U.S. 553, to review a judgment affirming a decision of the Board of Tax Appeals redetermining a deficiency in the income tax of the insurance company.