Walter T. Coy v. United States

The government secured a judgment on May 17, 1965, against Coy for $282,-413.64. This was for federal admissions taxes plus interest for the years 1949, 1950 and 1951 and federal income taxes for the years 1942, 1944, 1945, 1947 and 1948. Internal Revenue’s determinations of deficiencies in the two types of taxes were made and notices thereof given in the period January 8, 1953, to March 1, 1953.

The suit for collection was filed September 17, 1964. The central question here involves whether the six-year statute of limitations was applicable to the government’s action. Contrary to the district court, we hold on the particular facts here that it was.

After the assessment, Coy submitted on March 29, 1957, an offer of compromise of all of his taxes for $6,689.50. This sum was represented by a certified cheek drawn in favor of the Director of Internal Revenue.* The offer was made on a standard form which contained the stock provision that the statute of limitations was waived “for the period during which the offer is pending and for one year thereafter.”

Coy, in writing, withdrew the offer on December 19, 1961. Written notice that the government refused the offer was given on…