United States v. Jeffrey Page, 106 F.4th 834

The IRS mistakenly mailed a taxpayer, Jeffrey Page, a refund check for $491,104.01 instead of the correct amount of $3,463.
Page cashed the check about a year after receiving it and returned $210,000 but kept $277,641.01.
The United States filed suit under 26 U.S.C. § 7405 to recover the remaining erroneous refund less than two years after the check was cashed.
Page did not answer or appear; the government sought a default judgment.
The district court denied default and dismissed the suit sua sponte, concluding the statute of limitations began when Page received the check, possibly making the suit untimely.
The government appealed, arguing the statute ran from the date the check cleared, not when received.

Issue	Plaintiff's Argument	Defendant's Argument	Held
When does the statute of limitations begin for 26 U.S.C. § 7405 erroneous refund suits?	Government argued it begins when the check clears the Federal Reserve (i.e., when funds are paid out).	Page (and the district court) argued it begins when the taxpayer receives the refund check.	The court held the statute begins when the check clears, not when received.
Was the government’s complaint timely filed?	Complaint was timely since filed within two years of check clearing.	Complaint was untimely if statute started running at receipt of check.	Complaint was timely; dismissal reversed.
Can a district court sua sponte dismiss on statute of limitations when facts are unclear?	Dismissal was improper when the timing was not facially apparent from the complaint.	Supported dismissal, arguing facts suggested untimeliness.	District court erred by dismissing sua sponte and by shifting burden to plaintiff at pleadings.
Does precedent require statute of limitations to begin at receipt?	Earlier Ninth Circuit case did not decide between receipt or clearance, only mailing or receipt.	Cited Ninth Circuit precedent suggesting receipt.	Held prior case not controlling; squarely adopted check-clearance rule per other circuits.

United States v. Wurts, 303 U.S. 414 (1938) (statute of limitations for erroneous refund runs from actual payment, not earlier)
O’Gilvie v. United States, 519 U.S. 79 (1996) (limitations period begins at payment or receipt, with check clearance as "outer bound")
United States v. Carter, 906 F.2d 1375 (9th Cir. 1990) (discussed but not controlling; did not decide between receipt or clearing date)
United States v. Commonwealth Energy Sys., 235 F.3d 11 (1st Cir. 2000) (statute runs when check clears)
United States v. Greene-Thapedi, 398 F.3d 635 (7th Cir. 2005) (statute begins at check clearance, not earlier)