United States v. Olympic Radio & Television, Inc. (349 U.S. 232)
U.S. Supreme Court · decided May 23, 1955 · Supreme Court Database (Spaeth)
- Citation
- 349 U.S. 232 · 75 S. Ct. 733
- Docket
- No. 10
- Argued
- April 18, 1955
- Decided
- May 23, 1955
- Term
- October Term 1954
- Vote
- 8–0
- Majority author
- Justice Douglas
- Issue area
- Federal Taxation
- Disposition
- Reversed
- Outcome
- Petitioning party won
- Ideological direction
- Liberal
How the Justices voted
- Majority
- Chief Justice Warren, Justice Black, Justice Douglas (wrote), Justice Clark, Justice Frankfurter, Justice Burton, Justice Reed, Justice Minton
Opinion excerpt
Mr. Justice Douglas delivered the opinion of the Court. This suit was brought in the Court of Claims for a tax refund. The taxpayer, a New York corporation, kept its books and accounts on the accrual basis and filed its federal income tax returns on the same basis, using the calendar year. The taxpayer had a net operating loss of $310,872.60 for 1946. This loss was carried back and set off against the taxpayer’s excess profits net income for 1944, and its excess profits tax for 1944 was adjusted accordingly. That carry-back was authorized by the Internal Revenue Code of 1939, § 122; and it is not in controversy here. The taxpayer reported an excess profits tax liability of $346,643.22 for 1945. In 1946 the taxpayer paid $263,272.80 in excess profits taxes for 1945. It contends that that amount, paid in 1946, should have been added to the net operating loss of $310,872.60 for that year and that the sum of those figures, instead of $310,872.60, should have been carried back to 1944 as a net operating loss. If that should have been done, the United States would now owe the taxpayer the refund claimed. The Court of Claims, by a divided vote, sustained the taxpayer’s contention and held that, in computing its net operating loss for 1946, the taxpayer was entitled to include the amount of excess profits tax paid in 1946 on account of its 1945 return. Judgment was accordingly…
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