U.S. Supreme Court U.S. v. BERTELSEN & PETERSEN ENGINEERING CO., 306 U.S. 276 (1939)

[Page 306 U.S. 276, 279]

lected, ... until a claim for refund or credit has been duly filed with the Commissioner of Internal Revenue, .... No such suit or proceeding shall be begun ... after the expiration of five years from the date of the payment of such tax, penalty, or sum, unless such suit or proceeding is begun within two years after the disallowance of the part of such claim to which such suit or proceeding relates. The Commissioner shall within 90 days after any such disallowance notify the taxpayer thereof by mail.'

Section 3226 was further amended by Act June 6, 1932, c. 209, sec. 1103(a), 47 Stat. 169, 286, so as to read as shown in the margin. [Footnote 4] No. 416.

[Page 306 U.S. 276, 282]

It said: 'The crediting of the overpayments, by the Commissioner, against taxes due from the taxpayer for other years was a matter of defense, a justification for the failure to refund, and not a matter which destroyed the taxpayer's cause of action or ousted the court of jurisdiction.' (97 F.2d 488, 492.)

This conclusion we think is correct. Other points suggested, so far as presently important, are sufficiently answered by what has been said in No. 416.

Both of the challenged judgments must be affirmed.

Mr. Justice REED took no part in the consideration or decision of either of these causes. Footnotes

Footnote 1 Tucker Act March 3, 1887, c. 359, 24 Stat. 505, Acts June 27, 1898, c. 503, 30 Stat. 494, July 1, 1898, c. 546, 30 Stat. 597, 649, February 26, 1900, c. 25, 31 Stat. 33, March 3, 1911, 36 Stat. 1087, 1136, U.S.C.A. Title 28, 250(1).

Footnote 2 'The district courts shall have original jurisdiction as follows : ...'Twentieth. Concurrent with the Court of Claims, of all claims not exceeding $10,000 founded upon the Constitution of the United States or any law of Congress, or upon any regulation of an executive department, or upon any contract, express or implied, with the Government of the United States, ...' Act March 3, 1911, 36 Stat. 1087, 1091, 1093, U.S.C.A. Title 28, 41(20).

Footnote 3 See Acts November 23, 1921, c. 136, 42 Stat. 227, 311, June 2, 1924, c. 234, 43 Stat. 253, 348, February 24, 1925, c. 309, 43 Stat. 972, February 26, 1926, c. 27, 44 Stat. 9, 121, U.S.C.A. Title 28, 41(20).

Footnote 4 'Section 3226 of the Revised Statutes, as amended, is amended to read as follows: 'Sec. 3226. No suit or proceeding shall be maintained in any court for the recovery of any internal-revenue tax alleged to have been erroneously or illegally assessed or collected, ... until a claim for refund or credit has been duly filed with the Commissioner of Internal Revenue, .... No such suit or proceeding shall be begun ... after the expiration of two years from the date of mailing by registered mail by the Commissioner to the taxpayer of a notice of the disallowance of the part of the claim to which such suit or proceeding relates.' U.S.C.A. Title 26 , 1672-1673.