Eighth Street Baptist Church, Inc. v. United States

Eighth Circuit

Eighth Street Baptist Church, Inc. v. United States

431 F.2d 1193, 26 A.F.T.R.2d (RIA) 5540, 1970 U.S. App. LEXIS 7244

CourtCourt of Appeals for the Eighth Circuit

DecidedSeptember 23, 1970

Docket476-69

StatusPublished

Cited by20 cases

This text of 431 F.2d 1193 (Eighth Street Baptist Church, Inc. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Eighth Street Baptist Church, Inc. v. United States, 431 F.2d 1193, 26 A.F.T.R.2d (RIA) 5540, 1970 U.S. App. LEXIS 7244 (8th Cir. 1970).

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Opinion

PER CURIAM:

The plaintiff-appellant Eighth Street Baptist Church sued for refund of federal income taxes withheld by it under 26 U.S.C. § 3402 and paid to the United States. The district court held that the application of these withholding requirements did not violate the Church's rights and privileges under the First Amendment. On this appeal we are met with the threshold issue of federal court jurisdiction.

The Church withheld federal income taxes on the wages of its organist, pianist, choir director, janitor, and clerk in the claimed amount of $5,112.06. Jurisdiction is asserted under 28 U.S.C. § 1346. Subsection (a) (1) thereof provides that the United States District Courts shall have original jurisdiction of any civil action against the United States for the “recovery” of any tax, penalty, or sum erroneously or illegally assessed or collected under the internal revenue law. This statute has been construed to permit only actions brought by taxpayers. Phillips v. United States, 2 Cir., 346 F. 2d 999, 1000, and First National Bank of Emlenton v. United States, 3 Cir., 265 F.2d 297, 299-300.

Here, the Church is not the taxpayer; it is merely the collection agent for its taxpayer-employees. See Jules Hairstylists of Maryland, Inc. v. United States, Md., 268 F.Supp. 511, 513, affirmed 4 Cir., 389 F.2d 389, cert. denied 391 U.S. 934, 88 S.Ct. 1847, 20 L.Ed.2d 854. The withheld sums become “prepaid income tax” when received by the Treasury Department and are refundable to the taxpayer-employee, not to the withholding employer. Cf. 26 U.S.C. § 6513(b). Because § 1346 is a waiver of sovereign immunity, it must be narrowly construed. Phillips v. United States, supra. If the amount claimed was wrongfully assessed and collected, the employees, not the Church, would be entitled to sue. The Church is not the taxpayer entitled to “recovery” and accordingly the district court did not have jurisdiction under § 1346(a) (1).

The judgment of dismissal is affirmed.

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PER CURIAM:

The plaintiff-appellant Eighth Street Baptist Church sued for refund of federal income taxes withheld by it under 26 U.S.C. § 3402 and paid to the United States. The district court held that the application of these withholding requirements did not violate the Church's rights and privileges under the First Amendment. On this appeal we are met with the threshold issue of federal court jurisdiction.

The Church withheld federal income taxes on the wages of its organist, pianist, choir director, janitor, and clerk in the claimed amount of $5,112.06. Jurisdiction is asserted under 28 U.S.C. § 1346. Subsection (a) (1) thereof provides that the United States District Courts shall have original jurisdiction of any civil action against the United States for the “recovery” of any tax, penalty, or sum erroneously or illegally assessed or collected under the internal revenue law. This statute has been construed to permit only actions brought by taxpayers. Phillips v. United States, 2 Cir., 346 F. 2d 999, 1000, and First National Bank of Emlenton v. United States, 3 Cir., 265 F.2d 297, 299-300.

Here, the Church is not the taxpayer; it is merely the collection agent for its taxpayer-employees. See Jules Hairstylists of Maryland, Inc. v. United States, Md., 268 F.Supp. 511, 513, affirmed 4 Cir., 389 F.2d 389, cert. denied 391 U.S. 934, 88 S.Ct. 1847, 20 L.Ed.2d 854. The withheld sums become “prepaid income tax” when received by the Treasury Department and are refundable to the taxpayer-employee, not to the withholding employer. Cf. 26 U.S.C. § 6513(b). Because § 1346 is a waiver of sovereign immunity, it must be narrowly construed. Phillips v. United States, supra. If the amount claimed was wrongfully assessed and collected, the employees, not the Church, would be entitled to sue. The Church is not the taxpayer entitled to “recovery” and accordingly the district court did not have jurisdiction under § 1346(a) (1).

The judgment of dismissal is affirmed.

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431 F.2d 1193, 26 A.F.T.R.2d (RIA) 5540, 1970 U.S. App. LEXIS 7244, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eighth-street-baptist-church-inc-v-united-states-ca8-1970.

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