Squire, Collector of Internal Revenue v. Puget Sound Pulp & Timber Co

The question presented is from what date interest begins to run against the taxpayer on the portion of excess profits tax of which payment is deferred under § 710 (a) (S) of the Internal Revenue Code, 26 U.S.C.A. § 710 (a) (5).

Appellee taxpayer, a corporation, reported in its 1942 return excess profits tax net income in excess of 50% of its normal tax net income, computed without the credit provided in § 26(e), 26 U.S.C.A. § 26 (e). At the time of making its return appellee claimed a reduction in its excess profits net income under § 722, 26 U.S.C.A. § 722 , which provides for such reductions where the excess profits tax can be shown to be excessive and discriminatory under certain circumstances unnecessary to discuss here. Appellee deferred payment of 33% of the claimed § 722 reduction pursuant to the permission granted therefor by § 710(a) (5). On August 29, 1944, the Commissioner determined that appellee was entitled to no relief under § 722 and on September 30, 1944, he, the Commissioner, assessed additional excess profits taxes against appel-lee, including thé 33% deferred under § 710(a) (5), together with interest from March 15, 1943, the date prescribed for payment of…