William Howard Taft

“ Their claims are for interest not paid on refunds of taxes paid them. The proposed income tax upon the moore estate for 1920, as originally returned early in 1921, was $196,202.61. On March 15, 1921, and on June 15, 1921, quarterly payments of the tax, which amounted to $49,050.66, each were paid to the collector. On August 2, 1921, the trustees for the estate filed a claim for the refund of the two installments, aggregating $98,101.32, already paid, and claim for abatement of the two remaining quarterly installments not yet paid, aggregating the same amount. ”

“ To hold otherwise would be to invite a protest on any pretended ground by taxpayers in every case of payment, and would make the protest of no value to the Treasury or the collecting officers. A protest is for the purpose of inviting attention of the taxing officers to the illegality of the collection, so that they may take remedial measures at once. ”

“ The next claim of the trustees is for $3,889.67, and this turns on the question whether under section 1324 the interest on the refund for the 1920 taxes should be calculated under clause (1) in that section as for a payment made under a specific protest or whether as upon a payment under clause (3) for which no protest was made. ”

“ The one is a decision by the competent authority that the payment should be made. The other is the actual payment. The Commissioner of Internal Revenue is the final judge in the administrative branch of the government to decide that an overassessment has been made and that a refund or credit should be granted, and when he has made that decision finally, he has allowed the claim for the refund or credit of the taxes paid within the meaning of the section. ”

“ New York Trust Co. v. Detroit Railway Co., 251 F. 514, 163 C. C. A. 508; King v. Phillips, 95 N. C. 245, 59 Am. Rep. 238; Bennett v. Federal Coal & Coke Co., 74 S. E. 418, 70 W. va. 456, 40 L. R. A. (N. S.) 588, Ann. Cas. ”