United States v. John Barth Co., 279 U.S. 370 (1929)

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United States v. The John Barth Co.

No. 526

Argued April 18, 1929
Decided May 13, 1929
279 U.S. 370*
[U.S. Reports citation not yet available]

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE SEVENTH CIRCUIT

Syllabus

1. A limitation of five years declared by §§ 250(d) of the Revenue Acts of 1918 and 1921, and § 277(a)(2) of the Revenue Act of 1924, upon the time within which income and profits taxes may be assessed and suits begun to collect them, is inapplicable to a suit on a bond given within that time under par. 14(a), § 234(a), of the Revenue Act of 1918, to secure payment, with interest, of taxes which have been returned and assessed but payment of which has been postponed pending decision of a claim for abatement submitted by the taxpayer. P. 374.

2. The making of the bond in such case gives the United States a cause of action separate and distinct from the already existing cause of action to collect the taxes, and the taxpayer, by thus securing postponement of collection, waives the limitation of five years that would have applied had no bond been given. P. 375.

3. Section 1106(a) of the Revenue Act of 1926, providing that the bar of the statute of limitations against the United States in respect of any internal revenue taxes shall not only bar the remedy, but shall extinguish the liability, does not affect an action on a bond given ut supra. P. 376.

27 F.2d 782 reversed.

Certiorari, 278 U.S. 597, to review a judgment of the circuit court of appeals which affirmed a judgment of the district court dismissing the complaint in an action to enforce a bond given by The John Barth Company and its surety to secure payment of taxes. See also 276 U.S. 606.