Helvering v. Lerner Stores Corp., 314 U.S. 463 (1941)

Please note: this case begins in mid-page. It therefore shares a citation with the last page of the previous case. If you are attempting to follow a link to the last page of 314 U.S. 459, click here.

Helvering v. Lerner Stores Corp.

No. 248

Argued December 11, 1941
Decided December 22, 1941
314 U.S. 463

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE SECOND CIRCUIT

Syllabus

1. An amended capital stock tax return, to correct an undervaluation of the taxpayer’s capital stock declared by mistake in its "first return," cannot be filed after the lapse of 30 days from the statutory due date and after the expiration of the period for which an extension might have been allowed by the Commissioner if application for it had been made. Scaife Company v. Commissioner, ante, p. 459. P. 466.

2. In allowing the taxpayer to fix it own valuation of it capital stock, thereby affecting its tax liability under the closely related capital stock and excess profit tax provisions, the Revenue Act of 1935 does not unconstitutionally delegate legislative power. P. 468.

3. A claim of unreasonable classification or inequality in the incidence or application of a tax raise no question under the Fifth Amendment, which contains no equal protection clause. P. 468.

4. The propriety or wisdom of a tax on profits, computed with reference to a specified criterion of value of capital stock, is not open to challenge in the courts. P. 468.

5. There is no constitutional reason why Congress may not avoid litigious valuation problem by relying on the self-interest of taxpayer to place a fair valuation on their capital stock. P. 468.

118 F.2d 455, reversed.

Certiorari, post, p. 598, to review a judgment which reversed a decision of the Board of Tax Appeals sustaining an excess profits tax.