HAGGAR COMPANY v. COMMISSIONER OF INTERNAL REVENUE
| Decision Date | 21 July 1938 |
| Docket Number | Docket No. 89265. |
| Citation | 38 BTA 141 |
| Parties | HAGGAR COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT. |
| Court | U.S. Board of Tax Appeals |
O. D. Brundidge, Esq., for the petitioner.
Joe D. Hughes, Esq., for the respondent.
For the calendar year 1933 the respondent determined a deficiency of $382.49 in income tax and a deficiency of $1,376.52 in excess profits tax against the petitioner herein.
This proceeding has been submitted upon a stipulation of facts which, together with the exhibits attached thereto, is adopted as our findings of fact and included herein by reference.
The petitioner concedes as correct the deficiency of $382.49 in income tax. The sole issue is whether the petitioner may file a second or amended capital stock tax return for the year ending June 30, 1933, and thereby amend the declared value of its capital stock as reported in its first or original capital stock tax return for that year.
The petitioner, a Texas corporation, was in existence and doing business during the year 1933, and prior thereto, with its principal office and place of business in Dallas, Texas.
Pursuant to section 215 (d) and (f) and section 216 (a) of the National Industrial Recovery Act, 48 Stat. 195, 208,1 the petitioner on August 22, 1933, filed a capital stock tax return for the year ended June 30, 1933, setting out an original declared value of $120,000 for its entire capital stock, which was the par value thereof. Simultaneously the petitioner paid to the collector of internal revenue the capital stock tax of $120 shown to be due on that return. In filing the return the petitioner assumed that the law contemplated the declaration of the par value of its capital stock as shown by its charter rather than its actual value and the petitioner failed to give consideration to paragraph 3 of the "Instructions" attached to form 707, upon which the return was made.
Within the time for filing capital stock tax returns for the year ended June 30, 1933, as extended by Treasury Decisions 4368 and 4386, the petitioner filed, on September 28, 1933, a second capital stock tax return for that year, in which it declared the value of its capital stock to be $250,000. On the same date it paid to the collector of internal revenue the capital stock tax of $250 shown to be due on that return. Such return was accepted by the collector on the assumption that it was for a corporation other than this petitioner, but upon disclosure that the two returns filed on August 22 and September 28, 1933, respectively, were for the same corporation, the petitioner was advised that the second return could not be accepted.
On or about August 9, 1937, the petitioner filed a claim for refund for the capital stock tax of $120 paid on August 22, 1933, and the claim was rejected by the Commissioner on November 26, 1937.
On or about August 13, 1937, the petitioner filed a conditional claim for refund of the capital stock tax of $250 paid on September 28, 1933, and on or about December 24, 1937, the Commissioner tendered a Treasury check payable to petitioner in the amount of $312.58 as a refund of the capital stock tax of $250 plus interest. The petitioner has not cashed that check and the petitioner's tender of the check back to the Government has been refused.
On March 15, 1934, the petitioner filed its "Corporation income tax and excess-profits tax return for the calendar year 1933", form 1120, on which it inadvertently computed its excess profits tax exemption at 12½ percent of $370,000, the total declared value shown in the two above mentioned capital stock tax returns. The petitioner now claims that its excess profits tax exemption should have been computed at 12½ percent of $250,000, the declared value of its capital stock as set out in its second capital stock tax return filed on September 28, 1933.
In determining the deficiency in excess profits tax, here in controversy, the respondent computed the exemption at 12½ percent of $120,000, the declared value of petitioner's capital stock as shown in its original capital stock tax return filed on August 22, 1933.
The question here presented was considered at length and decided adversely to petitioner's contention in ...
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