United States v. Herbert D. Hover, Doing Business as Ciro's

This is an appeal involving alleged deficiencies in cabaret taxes assessed against the taxpayer, for the period June 1, 1951 to March 31, 1955, in the amount of $67,660.62. In 1956 taxpayer paid $300 of such assessment and filed a timely claim for refund of such amount. The claim was rejected by the District Director. The taxpayer then filed suit in the district court for refund of the taxes paid. The United States answered the complaint, and counterclaimed for the balance of the taxes allegedly due, some $75,219.13, with interest. On February 28, 1958, the district court entered judgment ordering that taxpayer take nothing by his complaint for refund of the $300, and that the United States have judgment against the taxpayer on its counterclaim in the sum of $7,463.86, together with interest thereon until paid. Motions for a new trial and to amend and make additional findings and conclusions were both denied. Timely notice of appeal was filed by the government.

The district court jurisdiction rested on 28 U.S.C. § 1346 (a) (1). This court has jurisdiction by virtue of 28 U.S.C. § 1291 .

Essentially the issue presented is whether a cabaret tax may be collected by the government…