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)
Supreme Court of the United States
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
Chief Justice Earl Warren Associate Justices Hugo Black · Felix Frankfurter William O. Douglas · Harold H. Burton Tom C. Clark · John M. Harlan II William J. Brennan Jr. · Charles E. Whittaker
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.

See also

• Chief Justice Warren
• List of United States Supreme Court cases, volume 357

References

1. 28 U.S.C. § 1346(a)(1).
2. See generally 26 U.S.C. § 6213.
3. See 11 U.S.C. § 505.

External links

• Works related to Flora v. United States at Wikisource
• 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)