Allen F. Ehle v. United States

Ehle appeals from a district court’s ruling dismissing his tax refund suit as barred by the statute of limitations. We affirm.

The facts are not in dispute. During 1969-71, $4,655 was withheld from Ehle’s wages. Believing he had no tax liability, Ehle did not file tax returns for those years. In 1978, he filed a refund claim for the amounts withheld in 1969-71. After the claim was denied, he filed suit in district court.

Under 26 U.S.C. § 6511 (b)(2)(A), Ehle may obtain by refund only those taxes paid within the three previous years. Under 26 U.S.C. § 6513 (b)(1), any amount withheld from wages is deemed paid on the April 15th following the close of the tax year. Because Ehle’s refund claim was filed more than three years after the amounts withheld in 1969-71 were deemed paid, the claim is barred by section 6511(b)(2)(A).

Ehle contends on appeal that notwithstanding section 6513(b)(1), the amounts withheld were not “paid” within the meaning of section 6511(b)(2)(A) because he intended the amounts withheld to be merely deposits, and because he had no tax liability for any of the years in question. We do not agree. All the cases to address the issue have held that section 6513(b)…