Crocker First National Bank v. United States

This is an action by the administrator of the estate of a deceased taxpayer for the recovery of income taxes. The facts have been stipulated.

On June 11, 1946, the taxpayer received a refund of $11,041.01 of income taxes paid for the year 1942, plus interest in the amount of $1,315.29. A year later, on June 11, 1947, the taxpayer was informed by the Commissioner that the interest on the refund of 1942 taxes had been erroneously paid, and was requested to return it. Taxpayer did not do so. On July 26, 1948, taxpayer was allowed but not paid a refund of $4,031.22 of income taxes paid for the year 1945. This refund was subsequently paid to taxpayer on May 12, 1950, less however the amount of interest which the Government claimed was erroneously paid to taxpayer on the refund of the 1942 taxes, plus interest on that amount. The de *574 duction was made, taxpayer was informed, because the Commissioner had on April 5,1950 offset the claimed erroneous payment of interest on the refund of 1942 taxes against the refund due taxpayer for 1945. It is that portion of the refund for 1945 allowed but not paid to taxpayer because of the offset, that is sought to be recovered in this…