137 F. Supp. 716 | Ct. Cl. | 1956
delivered the opinion of the court:
The plaintiff sues to recover interest on a portion of an overpayment of excess profits tax for the year 1942 credited against income tax deficiencies for the years 1942, 1943, and 1945. The case is before this court on defendant’s motion to dismiss on the ground that the suit is barred by the six-year statute of limitations embodied in 28 U. S. C. § 2501.
On May 19, 1948, the plaintiff filed a waiver consenting to the assessment and collection of the income tax deficiencies and accepting the overassessments in excess profits tax. The Commissioner of Internal Revenue charged interest on the income tax deficiencies and allowed interest on that part of the 1942 excess profits overpayment credited against the deficiencies to June 19, 1948, 30 days after the filing of the waiver. The income tax deficiencies were assessed on July 22, 1948. This suit is for interest on that part of the overpayment that was credited against the deficiencies, for the period from June 19, 1948, 30 days after the filing of the waiver, to July 22, 1948, date of the assessment of the deficiencies against which the overpayment was credited.
On April 20,1949, the Commissioner of Internal Revenue, submitted his report to the Joint Committee on Internal Revenue Taxation, pursuant to the provisions of section 3777 (a)
A statute of limitations on a suit for interest is not specifically covered by the Internal Revenue Code. Therefore, a suit for interest is founded on this court’s general jurisdiction and is governed by our six-year statute of limitations.
The defendant contends that plaintiff’s cause of action for the interest here sought accrued on May 4,1949, the date that the Commissioner signed the schedule of overassess-ments for the refund of the 1942 excess profits tax overpayment because the refund was allowed by section 3770 (a) (3)
We agree with the defendant’s position. It was early pointed out that a cause of action for interest does not accrue until the refund or credit is allowed. Colgate-Palmolive-Peet Co. v. United States, 74 C. Cls. 562, 570. There was some difficulty in ascertaining the date when the refund or credit was allowed. Congress clarified this problem and specifically provided by section 3770 (a) (3) that the date of the allowance of the refund or credit was the date the Commissioner signed the schedule of overassessments. The plaintiff contends that since the Commissioner could not refund or credit the overpayment until 30 days after the submission of the report to the Joint Committee, its cause of action for the interest did not accrue until that time. This is incorrect. When the Commissioner signed the schedule of overassessments on May 4,1949, plaintiff’s credit was allowed and its cause of action for interest due on this credit matured and accrued at that time. Colgate-Palmolive-Peet Co. v. United States, supra. The submission of the report to the Joint Committee was not intended to and does not suspend the plaintiff’s right to sue for the interest.
The defendant’s motion is granted, and plaintiff’s petition is dismissed.
It is so ordered.
“Every claim of which the Court of Claims has jurisdiction shall be barred unless the petition thereon is filed, or the claim is referred by the Senate or House of Representatives, or by the head of an executive department within six years after such claim first accrues. * * *”
“No refund or credit of any income, war-profits, excess-profits, estate, or-gift tax in excess of $75,000 shall be made until after the expiration of thirty days from the date upon which a report giving the name of the person to-whom the refund or credit is to be made, the amount of such refund or credit,, and a summary of the facts and the decision of the Commissioner is submitted to the Joint Committee on Internal Revenue Taxation.”
“Where the Commissioner has signed a schedule of overassessments in respect of any internal revenue tax imposed by this title, the Revenue Act of 1932, or any prior revenue Act, the date on which he first signed such schedule (if after May 28, 1928) shall be considered as the date of allowance of refund or credit in respect of such tax.”