James Clark McReynolds

“ Prior to the Revenue Act of 1926, the United States in an equity proceeding might recover from distributees of corporate assets, without assessment against them, the value of what they received in order to discharge taxes assessed against the corporation. ”

“ The meaning of the statute is not free from uncertainty. The insistence presented in behalf of the petitioners is at least plausible, but this has been before the courts several times, and none has approved it. One the other hand, the right of the United States to proceed against transferees by suit since the act of 1926 has been definitely recognized. ”

“ The present equity suit seeks to compel petitioners severally to account for corporate property in order that it may be applied toward payment of taxes due by the company. No assessment was made against any petitioner. ”