United States Supreme Court Cases & Opinions

U.S. Supreme Court

Commissioner v. Lane-Wells Co., 321 U.S. 219 (1944)

Commissioner of Internal Revenue v. Lane-Wells Co.

No. 115

Argued January 12, 1944

Decided February 14, 1944

321 U.S. 219

Syllabus

1. Where a personal holding company, for the years 1934, 1935, and 1936, failed to make and file a separate return on Form 1120H, as required by applicable and valid Treasury Regulations, in respect of the surtax imposed on personal holding companies by Title IA of the Revenue Acts of 1934 and 1936, held that assessment of the tax may be made at any time, notwithstanding that the corporation made and filed for each year a return on Form 1120 in respect of the ordinary income tax imposed by Title I of the Acts. P. 321 U. S. 222.

The filing of the ordinary income tax returns, in which the corporation erroneously denied that it as a personal holding company, did not start the statute of limitations running against assessment of the surtax.

2. Under the Revenue Acts of 134 and 1935, imposition of the penalty for failure to file a return (as distinguished from tardily filing) is mandatory, but, under the Revenue Act of 1936, the taxpayer may be relieved of the penalty where the failure to file was "due to reasonable cause and not due to willful neglect." P. 321 U. S. 224.

134 F.2d 977 reversed.

Certiorari, 320 U.S. 724, to review the reversal of a decision of the Board of Tax Appeals, 43 B.T.A. 463, which sustained the Commissioner's determination of deficiencies in personal holding company surtax and penalties.

Page 321 U. S. 220