United States v. Pacific Electric Ry. Co.

For the years 1937, 1938, 1939 and 1940, excise taxes aggregating $33,062.45 were paid 1 by appellee, Pacific Electric *903 Railway Company, a corporation, to Nat Rogan, Collector of Internal Revenue for the Sixth Collection District of California. Alleging that the taxes were erroneously collected, appellee claimed a refund and, its claim having been denied, brought a suit for the recovery of the taxes. Rogan having died, the suit was brought against appellant, the United States. 2 Appellant answered, a trial was had, an opinion was filed, 3 and a judgment was entered in appellee’s favor. From that judgment this appeal is prosecuted.

The taxes were collected under what is now subchapter B (§§ 1500-1537) of chapter 9 of the Internal Revenue Code, 26 U.S. C.A.Int.Rev.Code, §§ 1500-1537, 4 the pertinent provisions of which are found in §§ 1520 and 1532.

Section 1520 provides: “In addition to other taxes, every employer shall pay an excise tax, with respect to having individuals in his employ, equal to [specified] percentages of so much of the compensation as is not in excess of $300 for any calendar month paid.by him to any employee for services rendered to him .after December 31,…