Phillips v. Dime Trust & Safe Deposit Co., 284 U.S. 160 (1931)

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Phillips v. Dime Trust & Safe Deposit Co.

No. 18

Argued October 20, 1931
Decided November 23, 1931
284 U.S. 160

CERTIFICATE FROM THE CIRCUIT COURT OF APPEALS

FOR THE THIRD CIRCUIT

Syllabus

1. The tax imposed under § 302 of the Revenue Act of 1924, determined by including in the gross estate of the decedent subject to tax property held by the decedent and spouse as tenants by the entirety, and bank deposits in their joint names, is not a direct tax in violation of the constitutional requirement of apportionment (Art. I, § 2, cl. 3, and § 9, cl. 4). Following Tyler v. United States, 281 U.S. 497. P. 165.

2. As to property held upon tenancies by the entirety created after the effective date of the 1924 Act, the validity of the tax is conceded. Tyler v. United States, 281 U.S. 497. Id.

3. As to property held upon tenancies by the entirety created before the effective date of the 192 Act, but after that of the 1916 Act, and as to joint bank accounts the balances in which at the time of the death are not shown to have been derived from deposits made before the date of the 1916 Act, although the accounts were opened earlier, the tax is not arbitrarily retroactive. Milliken v. United States, 283 U.S. 15. P. 166.

4. In a suit to recover taxes already paid, the presumption is that they were lawfully assessed, and the burden rests upon the taxpayer to prove the facts that establish their illegality. P. 167.

Certificate from the Circuit Court of Appeals, upon appeal from a judgment of the District Court, involving questions as to the validity of the federal estate tax as applied to property held by a decedent and spouse as tenants by the entirety. This Court ordered up the entire record.