United States v. Weisburn
| Decision Date | 15 January 1943 |
| Docket Number | Civil Action No. 1635. |
| Citation | 48 F. Supp. 393 |
| Parties | UNITED STATES v. WEISBURN. |
| Court | U.S. District Court — Western District of Pennsylvania |
Gerald A. Gleeson, U. S. Atty., and Thomas J. Curtin, Asst. U. S. Atty., both of Philadelphia, Pa., Samuel O. Clark, Jr., Asst. Atty. Gen., and Andrew D. Sharpe and Robert R. Reynolds, Jr., Sp. Assts. to Atty. Gen., for plaintiff.
Joseph B. Englander, of Philadelphia, Pa., for defendant.
This suit was brought against the defendant personally and as executrix of the estate of Martin H. Weisburn, to collect $1,638.95 outstanding and unpaid balance of Federal income tax assessments made against defendant's decedent for the calendar years 1932, 1933, 1934 and 1935.
A jury trial was waived in this case, and it was heard before the Court on the pleadings, stipulation of facts and proofs.
The stipulated statement of facts is hereby adopted as the Findings of Fact of this Court, which are as follows:
1. On December 13, 1934, an assessment in the amount of $168.44 for additional income taxes for the year 1932 was made against Martin H. Weisburn, now deceased, by the Commissioner of Internal Revenue. The First Notice of such additional assessment was served on the taxpayer by the Collector of Internal Revenue at Pittsburgh, Pennsylvania, on December 10, 1934; the Second Notice was served on December 20, 1934, and a Warrant of Distraint for said $168.44, plus interest, was issued against the taxpayer on December 31, 1934.
2. Payments were thereafter made by the taxpayer to the Collector in Pittsburgh in the total amount of $122.15, leaving a balance owing and unpaid of $46.29. On June 27, 1936, the taxpayer died testate leaving the said balance of $46.29 additional income tax for the year 1932 still outstanding and unpaid.
3. On May 1, 1934, an assessment for income taxes for the calendar year 1933 in the amount of $479.09 was made against the taxpayer, Martin H. Weisburn, by the Commissioner. The First Notice of such assessment was served on the taxpayer by the Collector of Internal Revenue at Pittsburgh, Pennsylvania, on June 25, 1934; the Second Notice was served on July 10, 1934, and a Warrant of Distraint for the amount of $359.32, plus interest of $3.34, or a total of $362.66, was issued against the taxpayer on July 20, 1934.
4. A payment of $119.77 had been paid upon the filing of the Federal income tax return by the taxpayer and the balance due and unpaid thereafter was $359.32, plus interest. On June 27, 1936, the taxpayer died leaving the said balance of $359.32, plus interest, still due and unpaid.
5. On July 15, 1935, an assessment for income taxes for the year 1934 in the amount of $631.95 was made by the Commissioner against Martin H. Weisburn. The First Notice of such assessment was served upon the taxpayer by the Collector of Internal Revenue at Pittsburgh, Pennsylvania, on June 25, 1935; the Second Notice was served on July 15, 1935, and a Warrant of Distraint for the amount of $473.96, plus interest, was issued against the taxpayer on July 31, 1935.
6. A payment of $157.97 had been paid upon the filing of the Federal income tax return by the taxpayer and the balance due and unpaid thereafter was $473.96, plus interest. On June 27, 1936, the taxpayer died leaving the said balance of $473.96, plus interest, still due and unpaid.
7. On May 26, 1936, an assessment for additional income taxes for the year 1934 in the amount of $115.18 was made by the Commissioner against Martin H. Weisburn. The First Notice of such assessment for additional income taxes for the year 1934 was served on the taxpayer by the Collector of Internal Revenue at Pittsburgh, Pennsylvania, on April 10, 1936; the Second Notice was served on April 20, 1936, and a Warrant of Distraint for the amount of $115.18, plus interest, was issued against the taxpayer on April 30, 1936.
8. On June 27, 1936, the taxpayer died leaving the said sum of $115.18, plus interest, still outstanding and unpaid.
9. On May 26, 1936, an assessment in the amount of $858.94 for income taxes for the year 1935 was made by the Commissioner against Martin H. Weisburn. The First Notice of such assessment was served upon the taxpayer by the Collector of Internal Revenue at Pittsburgh, Pennsylvania, on June 23, 1936; the Second Notice was served on July 3, 1936, and a Warrant of Distraint for the amount of $644.20, plus interest, was issued against taxpayer and his wife on July 13, 1936.
10. A payment of $214.74 had been paid upon the filing of the Federal income tax return by the taxpayer and the balance due and unpaid thereafter was $644.20, plus interest. On June 27, 1936, the taxpayer died leaving the said balance of $644.20, plus interest, still outstanding and unpaid.
11. By his will the taxpayer named his wife, Katherine Weisburn, defendant herein, as executrix of his estate. The defendant, Katherine Weisburn, has duly and properly qualified as executrix of the estate of the said Martin H. Weisburn.
12. On August 14, 1936, proof of claim for the aforementioned balances, totaling $1638.95, plus interest, due and owing to the United States by Martin H. Weisburn, was filed with the defendant executrix by the Collector of Internal Revenue at Pittsburgh, Pennsylvania. No payments were ever made to the Collector at Pittsburgh by the defendant, and when defendant moved to Philadelphia, Pennsylvania, the total amount of $1,638.95, plus interest, was transferred to the office of the Collector of Internal Revenue at Philadelphia, Pennsylvania. The assessment lists in the said total amount of $1,638.95 were thereafter received and accepted by the Collector's office in Philadelphia, Pennsylvania. No payments have ever been made by the defendant to the Collector at Philadelphia on the amounts assessed against her decedent, Martin H. Weisburn, and as a result the total amount of $1,638.95 is still outstanding and unpaid.
13. On March 11, 1937, the defendant filed an inventory and appraisement of the personal estate of the taxpayer showing total receipts of $4,053.30, of which amount $3,738.30 was cash. Thereafter the defendant filed in the Orphan's Court of Allegheny County, Pennsylvania, a First and Final Account as executrix showing, among other things, the following:
Gross estate ......... $4,053.30
Receipts ........... $4,053.30
Disbursements ...... 3,385.23
_________
Balance cash on hand $ 668.07
14. The estate of Martin H. Weisburn was called for audit on January 21, 1942, after several postponements as the result of requests by the United States. The United States had sought such postponements in order that a final determination of the present suit could be made before the Orphan's Court of Allegheny County, Pennsylvania, issued its order of distribution. At the hearing of January 21, 1942, however, as this suit had never come up for trial, the United States withdrew its objections to the distribution as the Orphan's Court intimated that it would make no further extensions. A decree nisi was thereupon rendered by the Orphan's Court on February 24, 1942, confirming as modified the defendant's account and ordering a distribution of the assets remaining in the hands of defendant. No exceptions having been made to the nisi decree, it accordingly became final thereafter on April 8, 1942.
In addition to the stipulated facts, I make the following Findings of Fact:
15. The assets in the hands of the defendant executrix are insufficient to pay all the debts due from the deceased, Martin H. Weisburn.
16. The defendant executrix has paid debts of the deceased for whom she acts without having first satisfied and paid debts due to the United States.
The questions involved are two-fold:
(1) Whether the United States of America is entitled to recovery against the defendant as executrix for taxes assessed against her decedent, Martin H. Weisburn; and
(2) Whether the defendant is personally liable under the provisions of Sections 3466 and 3467 of the Revised Statutes for sums disbursed in payment of the debts of her decedent without having first satisfied and paid debts due to the United States.
Section 3466 of the Revised Statutes, 31 U.S.C.A. § 191, provides as follows:
Section 3467 of the Revised Statutes, 31 U.S.C.A. § 192, provides as follows:
Preliminarily, it may be stated that at the trial of this case, I ruled that the collection of balances outstanding and unpaid of the assessments made on December 13, 1934, and May 1, 1934, in the respective amounts of $46.29 and $359.32 is barred by the Statute of Limitations, inasmuch as this suit was instituted July 14, 1941, and therefore was not timely brought in regard to such assessments: ...
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