Fawcus Mach Co v. United States, No. 40
| Court | United States Supreme Court |
| Writing for the Court | ROBERTS |
| Citation | 75 L.Ed. 397,282 U.S. 375,51 S.Ct. 144 |
| Parties | FAWCUS MACH. CO. v. UNITED STATES |
| Docket Number | No. 40 |
| Decision Date | 05 January 1931 |
v.
UNITED STATES.
Page 376
Mr. James S. Y. Ivins, of Washington, D. C., for petitioner.
The Attorney General and Mr. Claude R. Branch, of Providence, R. I., for the United States.
[Argument of Counsel from page 376 intentionally omitted]
Page 377
Mr. Justice ROBERTS delivered the opinion of the Court.
Certiorari was granted to the Court of Claims, 281 U. S. 711, 50 S. Ct. 346, 74 L. Ed. 1133, to review a judgment, 68 Ct. Cl. 784, in favor of the United States in an action to recover an alleged overpayment of excess profits tax for the calendar year 1919. The petitioner, a corporation, kept its books and made its returns of income and excess profits taxes on the accrual basis. In its return for the year ended December 31, 1919, it did not deduct from invested capital any amount on account of income and excess profits taxes for 1918 assessed and paid in 1919.
The Commissioner of Internal Revenue determined that the invested capital for 1919 should be reduced by the amount of income and profits taxes for 1918 as of the dates in 1919 when the instalments of taxes fell due and were paid. To accomplish this he computed an average deduction for the year 1919, and diminished the earned surplus as of January 1, 1919, by subtracting from it the amount so ascertained.
The Commissioner's action was in accordance with article 845 of Treasury Regulations 45, promulgated April 17, 1919, applicable to the Revenue Act of 1918. The pertinent portion follows:
'Federal income * * * taxes are deemed to have been paid out of the net income of the taxable year for which they are levied.'
Section 326(a) of the Revenue Act of 1918 (40 Stat. 1092) provided that 'as used in this title the term 'invested capital' for any year means:
'* * *;
'(1) Actual cash bona fide paid in for stock or shares;
'(2) Actual cash value of tangible property, other than cash, bona fide paid in for stock or shares; * * *
'(3) Paid-in or earned surplus and undivided profits; not including surplus and undivided profits earned during the year.'
Page 378
Petitioner asserts that article 845 was based on the erroneous assumption that income taxes are payable out of the net income of the taxable year for which they are levied.
The United States replies that it is, and since 1914 it has been, required that a taxpayer shall keep his books and make his returns on a basis which will reflect true income; that...
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...SEC amicus brief at 45-47. This administrative interpretation is entitled to deference. See Fawcus Machine Co. v. United States, 1931, 282 U.S. 375, 51 S.Ct. 144, 75 L.Ed. 397; Hart & Sacks, The Legal Process: Basic Problems in the Making and Application of Law 1340-47 (tent. ed. 1958); Not......
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...United States v. American Trucking Ass'n, 310 U.S. 534, 549, 60 S.Ct. 1059, 84 L.Ed. 1345 (1949); Fawcus Mfg. Co. v. United States, 282 U.S. 375, 378, 51 S.Ct. 144, 75 L.Ed. 397 162 For a short period commencing in 1944 the Commission exercised jurisdiction over the acquisition of facilitie......
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Glover Const. Co. v. Andrus, No. 77-178-C.
...613, 627 34 S.Ct. 685, 58 L.Ed. 1121; Brewster v. Gage, 280 U.S. 327, 336 50 S.Ct. 115, 74 L.Ed. 457; Fawcus Machine Co. v. United States, 282 U.S. 375 51 S.Ct. 144, 75 L.Ed. 397; Interstate Commerce Commn. v. N. Y., N. H. & H. R. Co., 287 U.S. 178 53 S.Ct. 106, 77 L.Ed. 248. The practice h......
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State Revenue Comm'n v. Nat'l Biscuit Co. *, No. 9982.
...446 31 L. Ed. 389; Swendig v. Washington Power Co., 265 U. S. 322, 44 S. Ct. 496, 68 L. Ed. 1036; Fawcus Machine Co. v. United States, 282 U. S. 375, 51 S. Ct. 144, 75 L. Ed. 397; 25 R. C. L. 1043, 1045. "The practical interpretation of an ambiguous or doubtful statute that has been acted u......
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Great Western United Corp. v. Kidwell, No. 77-2809
...SEC amicus brief at 45-47. This administrative interpretation is entitled to deference. See Fawcus Machine Co. v. United States, 1931, 282 U.S. 375, 51 S.Ct. 144, 75 L.Ed. 397; Hart & Sacks, The Legal Process: Basic Problems in the Making and Application of Law 1340-47 (tent. ed. 1958); Not......
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Duke Power Company v. Federal Power Commission, No. 20578.
...United States v. American Trucking Ass'n, 310 U.S. 534, 549, 60 S.Ct. 1059, 84 L.Ed. 1345 (1949); Fawcus Mfg. Co. v. United States, 282 U.S. 375, 378, 51 S.Ct. 144, 75 L.Ed. 397 162 For a short period commencing in 1944 the Commission exercised jurisdiction over the acquisition of facilitie......
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Glover Const. Co. v. Andrus, No. 77-178-C.
...613, 627 34 S.Ct. 685, 58 L.Ed. 1121; Brewster v. Gage, 280 U.S. 327, 336 50 S.Ct. 115, 74 L.Ed. 457; Fawcus Machine Co. v. United States, 282 U.S. 375 51 S.Ct. 144, 75 L.Ed. 397; Interstate Commerce Commn. v. N. Y., N. H. & H. R. Co., 287 U.S. 178 53 S.Ct. 106, 77 L.Ed. 248. The practice h......
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State Revenue Comm'n v. Nat'l Biscuit Co. *, No. 9982.
...446 31 L. Ed. 389; Swendig v. Washington Power Co., 265 U. S. 322, 44 S. Ct. 496, 68 L. Ed. 1036; Fawcus Machine Co. v. United States, 282 U. S. 375, 51 S. Ct. 144, 75 L. Ed. 397; 25 R. C. L. 1043, 1045. "The practical interpretation of an ambiguous or doubtful statute that has been acted u......