United States v. Reseda Bowl, Inc.

Appellee, hereinafter taxpayer, recovered a judgment in the District Court against the United States of America, hereinafter appellant, in the amount of $2424.15, plus interest, resulting from the claimed overpayment of Federal Excise (cabaret) taxes in such amount for the period March 1, 1959 through March 31, 1961, inclusive.

From such judgment appellant has appealed, and specifies that the District Court erred:

1. In ruling that the taxpayer paid, with his returns, all of the tax due under the statute, in that it failed to give the proper effect to the uncontested and un-contestable fact that the taxpayer had failed to meet the requirement of the applicable Treasury Regulations that, in order to avoid paying the cabaret tax upon a base consisting of the total receipts for covered sales, it must evidence in one of three specified ways the fact that the tax was included therein and had been passed on to the customers.

2. In holding that the deficiency assessment in the amount of $2,424.15 constituted the imposition of an excise tax upon an excise tax and was therefore uncollectible under the statute.

Section 4231 of the Internal Revenue Code of 1954, 26 U.S.C., 1958 ed., in…