Blair v. United States Ex Rel. Birkenstock, 271 U.S. 348 (1926)

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Blair v. United States ex Rel. Birkenstock

No. 713

Argued May 4, 1926
Decided May 24, 1926
271 U.S. 348

CERTIORARI TO THE COURT OF APPEALS

OF THE DISTRICT OF COLUMBIA

Syllabus

Under § 1019 of the Revenue Act of 1924, which provides:

Upon the allowance of a credit or refund of any internal revenue tax erroneously or illegally assessed or collected, . . . interest shall be allowed and paid on the amount of such credit or refund at the rate of 6 percentum per annum from the date such tax . . . was paid to the date of the allowance of the refund, or in case of a credit, to the due date of the amount against which the credit is taken . . . ,

held:

1. Interest runs to the date on which the Commissioner of Internal Revenue signs the authorization to the Disbursing Clerk of the Treasury, directing him to pay the refund. Girard Trust Co. v. United States, 270 U.S. 163. P. 348.

2. Where an excessive income tax is paid in installments, interest does not begin running upon payments in excess of installments due until the payments exceed the total tax due. Revenue Act, 1918, §§ 250(a)(b), 252. P. 351.

3. The provision of § 1019 that, "in case of a credit," interest is to be allowed "to the due date of the amount against which the credit is taken" relates to a credit properly allowed of a "tax erroneously or illegally assessed or collected," and has no application to excess payments of quarterly installments which the government was entitled to treat as an advance payment of later installments under the provisions of § 250. P. 353.

55 App.D.C. 376 reversed.

Certiorari to a judgment of the court of appeals of the District of Columbia which affirmed a judgment granting the writ of mandamus to compel the Commissioner of Internal Revenue to compute and allow interest on income tax refunds.