BALTIMORE & OHIO RAILROAD COMPANY
v.
UNITED STATES
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The Baltimore & Ohio Railroad Company sought to recover stamp taxes paid on thirteen deeds of conveyance that lacked valuable consideration, claiming the taxes were illegally exacted. The Supreme Court affirmed the Court of Claims' dismissal, holding that an informal preliminary request to the Commissioner for a ruling did not constitute a timely claim for refund or abatement, and therefore the railroad's later refund claim was barred by the two-year statute of limitations for stamp tax redemption claims.
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Mr. Justice Sutherland delivered the opinion of the Court.
Thé appellant brought an action in the Court of Claims against the United States to recover the sum of $55,-158.00, alleged tc have been illegally exacted as stamp taxes upon thirteen deeds of conveyance made and delivered to appellant by its subsidiary companies. The deeds were without valuable consideration and were executed for the sole purpose of transferring legal title to enable appellant to mortgage the property conveyed. On February 11, 1915, before the delivery of these deeds, appellant exhibited three of them to the Commissioner of'Internal Revenue and asked for a ruling, thereby making what it alleges was a claim in abatement. The Commissioner held that the Stamp Tax Act applied and the appellant, without protest, affixed to the thirteen deeds the requisite amount of stamps.
Four years later the Commissioner, in construing a similar.act of 1918 held that “where no valuable consideration passed, stamps were not. .required on conveyances.”
Appellant thereupon filed with the Commissioner a claim for refund of the taxes paid which was rejected because barred by the statute of limitations.
Appellant now alleges that its claim for a refund constitutes an amendment of its original so-called claim in abatement. The'Court of Claims sustained a demurrer to • appellant’s petition alleging the foregoing upon the ground that the original request to the Commissioner for a ruling was not a claim either for abatement or refund, but that the claim for a refund was in-effect first made in 1919, and, therefore, that the Commissioner’s ruling was right.
The Act of May 12, 1900, c. 393, 31 Stat. 177, as amended by the Act of June 30, 1902, c.. 1327, 32 Stat. 506, provides in part: “ That the Commissioner of Internal Revenue, subject to regulations prescribed by the Secretary of the Treas-. ury, may, upon receipt of satisfactory evidence of the facts, make allowance for or redeem such of the stamps, issued under authority of law, to denoté the payment of any internal-revenue tax, as may have been spoiled . . . or in any manner wrongfully collected. . . . Provided further, That no claim for the redemption of or allowance for stamps shall be allowed unless presented within two years after the purchase of said stamps from the Government.”
• By § 3226, Rev. Stats., no suit can be maintained in any court for the recovery of any internal revenue tax alléged to have been erroneously or illegally collected until appeal has been made to the Commissioner of Internal Revénue, as provided'by law, and the decision of the Commissioner thereon has.been had.
The preliminary request to the Commissioner for an informal ruling was in ho sense a claim for abatement or refund. Appellant affixed the stamps to the deeds without protest and after that no effort was made ta secure redemption of or allowance for the stamps until long after the two-year period had expired.
On the facts alleged in the petition the Court of Claims could not have done otherwise than sustain the demurrer. Rock Island, Arkansas & Louisiana R. R. Co. v. United States, 254 U. S. 141.
The judgment of the Court of Claims is
Affirmed.
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Ritter v. United States, 28 F.2d 265 (3d Cir. 1928)…Ed. 561; Rings County Savings Institution v. Blair, 116 U. S. 200, 6 S. Ct. 353, 29 L. Ed. 657; Rock Island, Arkansas & Louisiana Railroad Co. v. United States, 254 U. S. 141, 41 S. Ct. 55, 65 L. Ed. 188; Baltimore & Ohio R. R. Co. v. United States, 260 U. S. 565, 43 S. Ct. 169, 67 L. Ed. 406; United States v. Richards (C. C. A.) 27 F. (2d) 284. One of those conditions in this case is that the claim for refund must have been filed with the Commissioner of Internal Revenue within four years after the time of…1 / 2
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Hudson Trading Co., Inc. v. United States, 28 F.2d 744 (3d Cir. 1928)…Ed. 561; Kings County Savings Institution v. Blair, 116 U. S. 200, 6 S. Ct. 353, 29 L. Ed. 657; Rock Island, Arkansas & Louisiana Railroad Co. v. United States, 254 U. S. 141, 41 S. Ct. 55, 65 L. Ed. 188; Baltimore & Ohio R. R. Co. v. United States, 260 U. S. 565, 43 S. Ct. 169, 67 L. Ed. 406; United States v. Richards (C. C. A.) 27 F.(2d) 284. In order to be relieved of the embarrassment and economical waste of having its vessels proceeded against in rem, seized, and detained under attachment proceedings,…1 / 2
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- Rock Island v. United States, 254 U.S. 141 (U.S. 1920)