Rose

This is a civil action brought by plaintiffs against the United States for recovery of an internal revenue tax alleged to have been erroneously or illegally assessed and collected. Jurisdiction is conferred upon this Court by Title 28 U.S.C. § 1346 (a) (1).

All relevant facts have been stipulated to by the parties and the matter has been submitted on written briefs.

Plaintiffs are husband and wife who during the years 1959 and 1960 were engaged in the business of boat chartering. On November 14, 1959, plaintiffs purchased a boat, the “Brandt”, for use in their business, the cost of which was stated to be $20,574.79. The boat was insured on May 6, 1960, at a value of $40,000.00 by the Boston Insurance Company (hereinafter “insurance company” or “insurer”). Two days later, on May 8, 1960, less than six months after its purchase, the “Brandt” caught fire and sank.

On the day of the sinking, plaintiffs orally notified their local insurance agent who in turn notified the insurance company by telegram of the loss. No written claim was filed with the insurance company by plaintiffs. The approximate location of the sunken vessel is known, but neither the plaintiffs nor the insurance…