Opinion · Supreme Court of the United States

Burnet v. Porter

51 S. Ct. 416

Type
Opinion
Court
Supreme Court of the United States
Jurisdiction
Federal
Date
1931-04-13
Topic
general

Commissioner may reopen case and disallow a deduction after expressly deciding to allow it

Citator

Cited by
39 opinions
BURNET,v. PORTER,283 U.S. 230(1931)
51 S.Ct. 416
BURNET, COMMISSIONER OF INTERNAL REVENUE,v. PORTER ET AL., EXECUTORS.
CERTIORARI TO THE CIRCUIT COURT OF APPEALS FOR THE THIRD CIRCUIT.
No. 203.
Argued March 12, 1931.
Decided April 13, 1931.
1. The Commissioner of Internal Revenue, after approving a deduction for loss in an income tax return and allowing a claim for refund of the proportional part of the tax, had authority to reopen the case later, disallow the deduction and redetermine the tax. 2. Decided, as respects proof of deductible loss, upon the authority ofBurnetv.Houston, ante, p. 223.39 F.2d 360, reversed.
CERTIORARI,282 U.S. 821, to review a judgment which reversed
a decision of the Board of Tax Appeals,13 B.T.A. 279, sustaining
disallowance of a deduction for a loss, in an income tax return.
Page 231
Assistant Attorney General Youngquist, with whomSolicitorGeneral ThacherandMessrs. Sewall KeyandA.H. Conner, Special Assistants to the Attorney General,Erwin N. Griswold, andClarence M. Charest, General Counsel, andAllin H.Pierce, Special Attorney, Bureau of Internal Revenue, were on the brief, for petitioner.Mr. Walter Lee Sheppard, with whomMr. William C.Alexander, Jr., was on the brief, for respondents.
MR. JUSTICE SUTHERLAND delivered the opinion of the Court.
William W. Porter was a subscriber in the sum of $75,000 to the fund described in our opinion handed down this day inBurnetv.Houston, ante, p. 223. The facts in the present case are the same except that the Commissioner of Internal Revenue first approved the deduction and allowed a claim for refund of the proportional part of the tax, and then some time later reopened the case, disallowed the deduction and redetermined the tax. The court of appeals sustained the power of the commissioner upon the authority ofMcIlhennyv.Commissioner of Internal Revenue,39 F.2d 356; and was clearly right in doing so. That court, however, upon the main point, following its decision in theHoustoncase, reversed the determination of the Board of Tax Appeals in favor of the government.39 F.2d 360. This is contrary to our decision in theHoustoncase, and upon that authority the judgment isReversed.