Enochs v. Muse
Decision Date | 25 September 1959 |
Docket Number | No. 17667.,17667. |
Citation | 270 F.2d 528 |
Parties | James L. ENOCHS, United States District Director of Internal Revenue for the District of Mississippi, Appellant, v. Kenneth MUSE and Winnie Muse, Appellees. |
Court | U.S. Court of Appeals — Fifth Circuit |
Charles K. Rice, Asst. Atty. Gen., Robert E. Hauberg, U. S. Atty., Jackson, Miss., Lee A. Jackson, Grant W. Wiprud, I. Henry Kutz, Fred E. Youngman, Attys., Dept. of Justice, Washington, D. C., for appellant.
L. Lamar Beacham, Jackson, Miss., for appellee.
Before RIVES, Chief Judge, and CAMERON and JONES, Circuit Judges.
The appellees, Kenneth Muse and Winnie Muse, are husband and wife. They will be referred to in this opinion as the taxpayers. They filed within the prescribed time a joint income tax return for the year 1956 and paid the tax as shown by the return to be owing. Thereafter the District Director determined that the taxpayers had underpaid estimated tax under the provisions of Section 6654 of the Internal Revenue Code of 1954.1 The Director made an assessment in the amount of $204.23 and demanded payment. The taxpayers brought suit seeking an injunction against the collection of the assessment by levy or otherwise claiming that the assessment is void because of the failure to give the notice as required by the statute.2 The District Director moved for a summary judgment on the ground that the addition to the tax under Section 6654 was not a deficiency as that term is defined in Section 6211,3 and therefore the complaint did not state a claim on which relief could be granted. The district court overruled the District Director's motion and he answered. The taxpayers moved for a summary judgment and their motion was granted. A perpetual injunction was granted against levying upon the taxpayers' property or taking other steps to collect the assessment. The district court's reasons for its judgment appear in its opinion. Muse v. Enochs, D.C., 164 F.Supp. 561. The District Director has appealed.
1 "In the case of any underpayment of estimated tax by an individual, except as provided in subsection (d), there shall be added to the tax under chapter 1 for the taxable year an amount determined at the rate of 6 percent per annum upon the amount of the underpayment (determined under subsection (b)) for the period of the underpayment (determined under subsection (c))." 26 U.S.C.A. § 6654(a).
2 "If the Secretary or his delegate determines that there is a deficiency in respect of any tax imposed by subtitles A or B, he is authorized to send notice of such deficiency to the taxpayer by registered mail." 26 U.S.C.A. § 6212(a).
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...Commissioner was expressly authorized to proceed under § 272(f) by reason of § 3780(c). The recent decision of the 5th Circuit in Enochs v. Muse, 270 F.2d 528, affirming D.C., 164 F.Supp. 561, which ruled that addition of statutory penalties does not involve computation of mathematical erro......
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...of this case, Strawberry Hill Press, Inc. v. Scanlon, 2 Cir., 273 F.2d 306 (involving an assessment under section 6651), and Enochs v. Muse, 5 Cir., 270 F.2d 528 (involving an assessment under section 6654), both of which followed Granquist. 1960-1 Cum.Bull. 840 and 843. 4 United States v. ......
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DiRezza v. Comm'r of Internal Revenue (In re Estate of DiRezza)
...courts held that under the 1954 Code all additions to tax for late filing were subject to the deficiency procedures. Cf. Enochs v. Muse, 270 F.2d 528 (5th Cir. 1959), holding that under the 1954 Code, additions to tax for failure by individuals to pay estimated income tax were subject to th......
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Johnston v. Commissioner of Internal Revenue
...Granquist v. Hackleman, 264 F.2d 9 (9th Cir. 1959); Strawberry Hill Press, Inc. v. Scanlon, 273 F.2d 306 (2d Cir. 1959); Enochs v. Muse, 270 F.2d 528 (5th Cir. 1959). Congress, seeking to alleviate from the Commissioner the burden of auditing and issuing notices of deficiency on returns who......