Western Wholesale Drug Co. v. United States

The agreed facts axe that plaintiff on November 14, 1919, filed its income and profits tax return for the fiscal year closing August 31, 1919, and showing a tax liability of $149,184.17, and on November 15, 1920, filed a separate tax return for the year closing August 31, 1920, disclosing a liability of $245,197.66. On audit by the Commissioner of Internal Revenue, he decided that certain sales had been erroneously included in the return of 1919, and that the tax for that year amounted to $242,136.58, and, for the year 1920, amounted to $165,760.40, thus determining an additional or deficiency tax for the year 1919, of $92,952.41, and an overassessment of $79,437.26, for the year 1920. It is evidenced that plaintiff paid in cash the deficiency tax of 1919, amounting to $20,922.-99, and accepted application of a credit for the balance amounting to $72,029.42, comprising the excess found to have been paid for the year 1920. The entire amount paid by plaintiff on account of the 1919 tax including the credit made by the Commissioner on September 30, 1925, was $242,136.58.

I am of opinion that such credit involved a final disposition of the assessment in question, and its application…