Flora v. United States
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).[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.
| Flora v. United States, 357 U.S. 63 (1958) | |
|---|---|
 | |
| Argued May 20, 1958 Decided June 16, 1958 | |
| Full case name | Flora v. United States |
| Citations | 357 U.S. 63 (more) 78 S. Ct. 1079; 2 L. Ed. 2d 1165; 1958 U.S. LEXIS 1806 |
| Case history | |
| Prior | Cert. to the 10th Circuit, 246 F.2d 929 (10th Cir. 1957) |
| Subsequent | Affirmed on rehearing, 362 U.S. 145 (1960) |
| 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). | |
| Court membership | |
| |
| Case opinion | |
| Majority | Warren, joined by unanimous |
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[2] or, (B) in a bankruptcy case, a determination under section 505(a) of the US Bankruptcy Code.[3] 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.
External links
- Text of Flora v. United States, 357 U.S. 63 (1958) is available from: CourtListener Google Scholar Justia Library of Congress
- Text of Flora v. United States, 362 U.S. 145 (1960) is available from: CourtListener Google Scholar Justia Library of Congress Oyez (oral argument audio)