-35-
Petitioner did not, by the lodgment of returns
with * * * [the revenue agent], discharge the duty
which the statute laid upon it. Also, the action of
petitioner in filing returns with the collector at
Baltimore on October 28, 1938, was ineffective to bring
it within the limitations of the statute so as to
entitle it to the benefit of deductions. These returns
were filed (a) after respondent had determined the
deficiencies and prepared returns for petitioner under
section 3176 of the Revised Statutes, as amended, and
(b) after the petition and answer had been filed and
the case was at issue before the Board, and only
approximately two and one-half months prior to the
hearing. Returns filed under such circumstances do not
meet the requirements of section 233. Taylor
Securities, Inc., 40 B.T.A. 696. On the point under
discussion, the facts of the instant proceeding are not
distinguishable in any material respect from those of
the Taylor case. On authority of that decision and for
the reasons therein stated, which need not be repeated
here, respondent’s action in computing the present
deficiencies without the allowance of deductions is
approved. [Ardbern Co. v. Commissioner, 41 B.T.A at
919-920.]
Upon appeal, the Court of Appeals for the Fourth Circuit
modified and remanded the Board’s decision on the authority of
Anglo-Am. Direct Tea Trading Co. v. Commissioner, 38 B.T.A. 711
(1938). The court stated:
fair dealing between the Government and a taxpayer
would require the agent to whom the returns were
improperly tendered for filing to advise the taxpayer
as to the official and place where the returns should
be filed. Here the agent Muller rejected the returns
on the sole ground that they were improperly executed
and did not notify the taxpayer that the returns could
in no event be filed with him. Soon after the refusal
to accept the returns the deficiency was determined
against the taxpayer.
It is conceded that, if the return which taxpayer
attempted to file before Muller in June 1937 had been
properly filed before the Collector at Baltimore,
taxpayer would have been entitled to the deductions
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