Hutchinson Co. v. Commissioner of Internal Revenue, Docket No. 13308.

• Decision Date: 19 November 1928
• Docket Number: Docket No. 13308.
• Citation: 14 BTA 367
• Parties: HUTCHINSON CO., PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
• Court: U.S. Board of Tax Appeals

14 B.T.A. 367 (1928)

HUTCHINSON CO., PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.

Docket No. 13308.

Board of Tax Appeals.

Promulgated November 19, 1928.

Frederick L. Pearce, Esq., for the petitioner.

J. L. Backstrom, Esq., for the respondent.

The Commissioner notified the petitioner of deficiencies in tax for the fiscal years ending March 31, 1921, and March 31, 1922, in the amounts of $3,016.64 and $453.49, respectively. The petitioner instituted this proceeding contesting the correctness of these deficiencies and alleged numerous errors, all but two of which it later waived, so that we are now concerned only with the allegation that for the fiscal year 1921 the statute of limitation prevents further assessment, and that in the determination of the deficiency for this year the Commissioner has failed to credit the petitioner with the payment of $50 on its total tax liability.

FINDINGS OF FACT.

The petitioner is incorporated under the laws of the State of Iowa, and has its principal place of business at Cedar Rapids. On June 15, 1921, it filed a corporation income and profits-tax return on Form 1120 with the collector of internal revenue, Dubuque, Iowa, covering the fiscal year ending March 31, 1921, showing a net income of $45,447.43, invested capital of $132,955.29, and total tax due in the amount of $13,460.13. This amount of tax was thereafter duly paid. On May 15, 1922, it filed a corporation income and profits-tax return marked "Supplemental" on Form 1120, with the collector of internal revenue, Dubuque, Iowa, covering the fiscal year ending March 31, 1921. This return under "Schedule A — Taxable Net Income," shows the following entry only: "See Original. No change in Income, $45,447.43," and under "Schedule B, Invested Capital," shows the following entry only: "See Original. No Change. Invested capital $132,955.29." Other schedules contain only such entry as "No change. See original," except that under "Schedule C, Excess Profits Credit," the same figures are shown as were shown on the return filed June 15, 1921, and under "Schedule D, Computation of Taxes," there is a computation disclosing a total tax of $13,510.13. The $50 additional tax shown in the supplemental return was paid on May 23, 1922. This additional tax resulted from the elimination of an exemption of $2,000. In the deficiency notice credit was given for tax paid in the amount of $13,460.13 only. The deficiency proposed in this proceeding for the fiscal year ending March 31, 1921, has not been assessed and the files of the Commissioner do not show that any waiver has been filed for that year. The returns filed were not false or fraudulent with intent to evade tax. No controversy affecting income and profits taxes for the fiscal year ended March 31, 1921, except that involved herein is pending against the petitioner and no suit or other proceeding for the collection of the deficiency except this proceeding has been begun against the petitioner.

OPINION.

MURDOCK:

The petitioner invokes the bar of the statute of limitations to the determination and assessment of the deficiency for the fiscal year 1921. Section 250 (d) of the Revenue Act of 1921, insofar as it is applicable to the present case, provides as follows:

The amount of income, excess-profits, or war-profits taxes due under any return made under this Act for the taxable year 1921 * * * shall be determined and assessed by the Commissioner within four years after the return was filed, * * *.

The question, then, is, Was the return filed June 15, 1921, such a return as would start the four-year period? If so then our judgment must be for the petitioner, if not then the Commissioner must be sustained. The petitioner's fiscal year ended in the year 1921, and on the fifteenth day of the third month following the close of that fiscal year this return was filed. Thereafter on November 23,...