Flora v. United States
| Flora v. United States, 357 U.S. 63 (1958) | |||||
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| Argued May 20, 1958 Decided June 16, 1958 |
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| Full case name | Flora v. United States | ||||
| Citations | 357 U.S. 63 (more)
357 U.S. 63, 78 S. Ct. 1079 (1958), affirmed on rehearing, 362 U.S. 145, 80 S. Ct. 630 (1960)
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| Prior history | Cert. to the 10th Circuit | ||||
| Holding | |||||
| A taxpayer must pay the full amount of an income tax deficiency assessed by the Commissioner of Internal Revenue before he may challenge its correctness by a suit in a federal district court for refund under 28 U.S.C. § 1346(a)(1). | |||||
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| Case opinions | |||||
| Majority | Warren, joined by unanimous | ||||
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Wikisource has original text related to this article: |
Flora v. United States, 357 U.S. 63 (1958), affirmed on rehearing, 362 U.S. 145 (1960), was a case in which the Supreme Court of the United States held that a taxpayer generally must pay the full amount of an income tax deficiency assessed by the Commissioner of Internal Revenue before he may challenge its correctness by a suit in a federal district court for refund under 28 U.S.C. § 1346(a)(1). The Supreme Court agreed with the Commissioner of Internal Revenue, stating that the full payment rule requires the entire amount of an asserted deficiency to be paid before a refund suit may be maintained.
Importance
If the taxpayer chooses to pay less than the deficiency asserted, the taxpayer's only remedies are (A) a deficiency proceeding in the Tax Court[1] or, (B) in a bankruptcy case, a determination under section 505(a) of the US Bankruptcy Code.[2] That rule can be a problem for a taxpayer who lets the 90-day period (following the issuance of a statutory notice of deficiency, during which he may file a Tax Court petition) expire and then cannot fully pay because of insufficient assets since the assets were seized or voluntarily liquidated for payment.
See also
References
External links
- Text of Flora v. United States, 357 U.S. 63 (1958) is available from: Justia
