Taylor v. United States

2 Cl. Ct. 791, 52 A.F.T.R.2d (RIA) 5455, 1983 U.S. Claims LEXIS 1692
CourtUnited States Court of Claims
DecidedJuly 1, 1983
DocketNo. 571-82 T
StatusPublished

This text of 2 Cl. Ct. 791 (Taylor v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Taylor v. United States, 2 Cl. Ct. 791, 52 A.F.T.R.2d (RIA) 5455, 1983 U.S. Claims LEXIS 1692 (cc 1983).

Opinion

OPINION

SETO, Judge:

Plaintiff, Mr. Taylor, seeks a total of $2,732.73 in federal income tax refunds for the years 1968, 1969, 1970, 1971, 1972, 1976 and 1979. Defendant has moved to dismiss the claims for 1968, 1970, 1971, 1972, 1976 and 1979, on the grounds that plaintiff initially failed to file timely refund claims with the Internal Revenue Service (IRS) before bringing suit. See, 26 U.S.C. § 7422(a) (1976). Defendant moves to dismiss plaintiff’s claims for 1969, maintaining that while plaintiff did file timely refund claims with the IRS for 1969, he is limited by statute to recovering only the amount of those 1969 taxes which he paid within the three years preceeding his filing of refund claims with the IRS. See, 26 U.S.C. § 6511(b)(2)(A) (1976).

This court concludes that plaintiff’s action seeking refunds for 1968, 1970, 1971, 1972,1976 and 1979, is barred by the operation of section 7422(a) of the Internal Revenue Code of 1954, which requires that a taxpayer first file a timely refund claim with the IRS, seeking his administrative remedy, before maintaining a suit in this court. As to plaintiff’s 1969 claim, although he did file timely refund claims with the IRS for 1969, he is prevented from recovering by section 6511(b)(2)(A), which limits his recovery to the amount of taxes (for 1969) paid within the three years immediately preceeding. his claims with the IRS. Because plaintiff paid none of those taxes within the last three years, his claim is barred.

FACTS

Plaintiff instituted the present action to collect federal income tax refunds totaling $2,732.73. Plaintiff claims the following refunds:

Tax Year
Amount of Current Claim
Date on which current refund claim was made with the IRS (by means of a return)_
1968— $ 200.00
24.94 6/17/82
1969— 193.27 * 6/17/82
168.31 7/9/82
1970— 376.21 7/9/82
1971— 300.00 * No return filed
500.00 No return filed
1972— 250.00 No return filed
1976— 550.00 No return filed
1979— 170.00 No return filed
Total- $2,732.73

A taxpayer usually makes refund claims by means of a tax return. But, plaintiff failed to file any refund claims with the IRS for the amounts he presently claims, for the tax years 1968 (for $200), 1971,1972, 1976 and 1979. See, Treas.Reg. § 301.6402-3(a)(1). Plaintiff did file returns with the IRS claiming refunds for 1968 (for $24.94) and for 1970. Plaintiff filed these returns on June 17,1982 and July 9,1982. The IRS disallowed these claims. Plaintiff filed his original tax returns for 1968 and 1970, on March 28, 1969 and April 30, 1971, and received refunds for the amounts claimed therein.

[793]*793For the tax year 1969, plaintiff filed his original return with the IRS on June 17, 1982 and filed a second return on July 9, 1982. The IRS considered both returns to be refund claims. Since plaintiff’s claim of June 17, 1982, constituted his original tax return for 1969, both refund claims for 1969 satisfied the statutory requirement that refund claims be filed with the IRS within three years of filing the original return for 1969. 26 U.S.C. § 6511(a) (1976). The IRS disallowed the claims for 1969.

DISCUSSION

This court first considers plaintiff’s refund claims for the tax years 1968, 1970, 1971, 1972, 1976 and 1979. The Internal Revenue Code of 1954 requires that before a taxpayer can bring a suit in court to collect a refund, the taxpayer must file a refund claim with the IRS. 26 U.S.C. § 7422(a) (1976). Generally, a taxpayer makes a refund claim with the IRS on his income tax return. Treas.Reg. § 301.6402-3(a)(1). Section 7422(a) states:

No suit or proceeding shall be maintained in any court for the recovery of any internal revenue tax ... until a claim for refund or credit has been duly filed with the Secretary, according to the provisions of law in that regard, and the regulations of the Secretary established in pursuance thereof. [26 U.S.C. § 7422(a) (1976)].

Plaintiff has not filed refund claims, for the amounts he now claims,1 with the IRS for the following years; 1968 (for $200), 1971, 1972, 1976 and 1979. The statutory requirement that plaintiff first file a refund claim with the IRS before bringing suit, therefore, bars plaintiff’s claim to these refunds. 26 U.S.C. § 7422(a) (1976).

Plaintiff did file refund claims with the IRS for 1968 (for $24.94) and for 1970, but he is barred from bringing suit on these claims because the claims were not timely filed. Before bringing suit in court a taxpayer must file a timely refund claim “according to the provisions of law in that regard.” Id. Section 6511(a), of the Internal Revenue Code, outlines the time requirements for filing a refund claim with the IRS. 26 U.S.C. § 6511(a) (1976). Unless the taxpayer files a timely claim with the IRS, he cannot bring a suit in court to collect the refunds. Section 6511(a) provides:

Claims for credit or refund of an overpayment of any tax ... shall be filed by the taxpayer within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever of such periods expires the later.... [26 U.S.C. § 6511(a) (1976)].

Plaintiff failed to satisfy either of the alternative requirements in filing his claims with the IRS for 1968 (for $24.94) and 1970. The claims were not filed within two years of the dates plaintiff paid his taxes for 1968 and 1970. Plaintiff’s taxes for 1968 and 1970, were withheld from his paychecks during these years. Taxes withheld from the taxpayer’s income are deemed paid on the fifteenth day of the fourth month following the end of the taxable year. 26 U.S.C. § 6513(b) (1976). Accordingly, the taxes withheld from plaintiff’s income during 1968 and 1970 were paid on April 15, 1969 and April 15,1971, respectively. Since plaintiff filed his refund claims with the IRS for 1968 (for $24.94) and for 1970, in 1982, he did not satisfy the requirement that he file the claims within two years of paying his taxes for those years.

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2 Cl. Ct. 791, 52 A.F.T.R.2d (RIA) 5455, 1983 U.S. Claims LEXIS 1692, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-v-united-states-cc-1983.