United States v. Aberdeen Aerie No. 24 of Fraternal Order of Eagles

This is an action by two subordinate Aeries- of the Fraternal Order of Eagles for the recovery of taxes assessed by the Government and paid by appellees under the Social Security Act, c. 531, 49 Stat. 620 , 42 U.S.C.A. § 301 et seq., and Chapter 9 of the Internal Revenue Code, c. 531, 49 Stat. 636 , 639, 26 U.S.C.A. Int.Rev.Code, § 1400 et seq., 1600 et seq.

The essential facts, relating to periods and amounts involved have been stipulated. In the Ballard case, it has also been stipulated and conceded that five individuals whose status is not in issue here were "employees” within the meaning of the Act. Therefore, the issues are narrowed down to the specific questions of interpretation presented with respect to each Aerie.

The' Aberdeen Aerie paid its taxes under Title VIII of the Social Security Act (Chapter 9, subchapter A of the Internal Revenue Code); and the Ballard Aerie paid under Title IX (Chapter 9, subchapter C of the Internal Revenue Code). Title VIII applies to “every employer”, while Title IX applies only to every employer who had in his employ at least eight employees on a given number of days during the calendar year. So that, while in the Aberdeen case it was…