Helvering

Petitioners seek a review of an order of the Board of Tax Appeals affirming a deficiency assessment for income taxes. The sole question presented by the record is whether or not the assessment was too late.

On July 15, 1925, the petitioner made a return for its fiseal year ending April 30, 1925, filing a consolidated ineome tax return on behalf of itself and its subsidiaries, the National Paper Products Company and the Sanitary Products Corporation. The question is whether or not this return started the period of limitation for making an assessment under the Revenue Act of 1926 ( 44 Stat. 9 ). It is alleged and is conceded “that said return was filed in striet compliance with the Revenue Act of 1924 then in force and effect and that said return was neither false nor fraudulent.” This return showed a net income of $1,266,992.39 and a tax thereon computed by the taxpayer at the rate of 12% per cent, as provided in the statutes of 1924 (section 230 Revenue Act 1924, 43 Stat. 253 , 282 [26 USCA § 981 note]), amounting to $158,374.05. This tax was paid in four installments of $39,593.51, the first on July 15, 1925, and the last on April 16, 1926. On February 26, 1926, the Revenue Act…