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HELVERING V. NEWPORT CO., 291 U. S. 485 (1934)

U.S. Supreme Court

Helvering v. Newport Co., 291 U.S. 485 (1934)

Helvering v. Helvering v. Newport Co.

No. 515

Argued February 15, 16, 1934

Decided March 5, 1934

291 U.S. 485


1. Under § 280(1) of the Revenue Act of 1926, an income and excess profits tax which might lawfully have been assessed, under an earlier Act, against a transferor of all of his property, before the transfer, may be assessed against the transferee in the same manner and subject to the same provisions and limitations as in the case of a deficiency in a tax imposed by the 1926 Act. P. 291 U. S. 487.

2. Under § 278(c) of the Revenue Act of 1926, the time for assessment may be extended by waiver even though the period limited for assessment by § 277 had expired before the waiver was given. P. 291 U. S. 488.

3. Any doubt that § 1106(a) of the Revenue Act of 1926, in providing that the bar of the statute of limitations should not only operate to bar the remedy, but should extinguish the right, was not intended to make § 278(c) -- the waiver section -- inapplicable to assessments barred by limitations, was removed by § 612, Revenue Act of 1928, which repealed § 1106(a) retroactively as of the effective date of the 1926 Act. P. 291 U. S. 489.

4. Congress, with the consent of the taxpayer, has power to reestablish his tax liability and to authorize assessment of the tax, even though extinguished by the running of the statute of limitations, and Congress evidenced that purpose by repealing § 1106(a) as of its effective date, leaving unaffected § 278(c). P. 291 U. S. 491.

5. An assessment made after time but with consent of the taxpayer by waiver given under § 278(c) was validated by the subsequent act of Congress repealing § 1106(a) as of its effective date. Pp. 291 U. S. 488-490.

65 F.2d 925 reversed.

Certiorari, 290 U.S. 620, to review the affirmance of a decision of the Board of Tax Appeals, 22 B.T.A. 833, overruling a deficiency assessment of income and profits taxes.

Page 291 U. S. 486

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