Scully v. United States

Full title: SCULLY et al. v. UNITED STATES.

Court: United States Court of Claims.

Date published: Mar 3, 1947

70 F. Supp. 255 (Fed. Cl. 1947)

Opinion

70 F.Supp. 255 (Ct.Cl. 1947) SCULLY et al. v. UNITED STATES. Nos. 46462, 46463. United States Court of Claims. March 3, 1947

        Stanley Worth, of Washington, D. C. (J. Gilmer Korner, Jr., and Blair, Korner, Doyle & Appel, both of Washington, D. C., on the brief), for plaintiff.

        J. H. Sheppard, of Washington, D. C., and Douglas W. McGregor, Asst. Atty. Gen. (J. Louis Monarch and Andrew D. Sharpe, both of Washington, D. C., on the brief), for defendant.

        Before WHALEY, Chief Justice, and LITTLETON, WHITAKER, JONES, and MADDEN, Judges.         These cases having been heard by the Court of Claims, the court, upon the evidence and the report of a commissioner, makes the following special findings of fact:

        1. Plaintiffs are the executors of the estate of Frederick Scully who died October 28, 1942, and who will hereinafter sometimes be referred to as the 'decedent'. He was a brother of Thomas A. Scully, plaintiff in docket Nos. 46388 and 46389. During the period involved in these proceedings the decedent or his estate owned extensive farm lands in Kansas, Nebraska, and Louisiana.

         Findings Nos. 2 to 14, inclusive, are applicable to No. 46462

        2. For the calendar years 1936, 1937, 1938, and 1939, the decedent failed to file returns of excise tax on employers of eight or more individuals under Title IX of the Social Security Act, 42 U.S.C.A. § 1101 et seq., and such returns were filed in his behalf by the Commissioner of Internal Revenue on December 23, 1941, under the provisions of Section 3612 of the Internal Revenue Code. The returns so filed disclosed the taxes and penalties shown below:

Year:	Tax	25% Penalty
1936 .................	$203.96	$50.99
1937 ..................	428.72	107.18
1938 ..................	778.84	194.71
1939 ..................	681.85	170.46

        3. The taxes and penalties disclosed by the returns referred to in finding 2 were assessed on January 20, 1942, together with interest in the following amounts:

Year:	Interest
1936 ...................	$58.76
1937 ...................	102.16
1938 ...................	138.85
1939 ....................	80.65

        4. On November 8, 1943, plaintiffs, by Thomas A. Scully, executor, filed returns for the years 1936 through 1939 disclosing taxes under Title IX of the Social Security Act in the amounts shown below:

Year:	Tax
1936 ..	$92.92
1937 ..	194.30
1938 ..	418.58
1939 ..	296.60

        Each of these returns shows decedent's occupation as 'farm management'.

        5. On February 14, 1942, decedent filed claims in abatement of the excise taxes, penalties, and interest assessed under Title IX of the Social Security Act for the years 1936 through 1939 in the following amounts:

Year:	Amount
1936 ...	$313.71
1937 ....	638.06
1938 ..	1,112.40
1939 ....	932.96

        Each of these claims alleged in substance that the decedent was not liable for the excise taxes claimed under the Social Security Act, because the wages paid to the employees involved were paid for the performance of agricultural labor.

        6. The claims referred to in finding 5 were rejected by the Commissioner on August 26, 1942.

        7. On September 25, 1942, decedent paid the following amounts as taxes for the years indicated:

Year:	Amount
1936 ..	$203.96
1937 ...	428.72
1938 ...	778.84
1939 ...	681.85

        8. On November 9, 1943, plaintiffs, by Thomas A. Scully, executor, filed claims for refund and claims for abatement for the years 1936 through 1939 in the following amounts:

Year:	Refund	Abatement
1936 ..	$111.04	$109.75
1937 ...	234.42	209.34
1938 ...	360.26	333.56
1939 ...	385.25	251.11

        In each of these claims plaintiffs alleged in substance that the employees to whom the taxes related were engaged in agricultural employment and, therefore, their wages were not subject to the tax.

        9. On or about April 17, 1944, the Commissioner issued certificates of overassessment which were duly received by plaintiffs showing his determination as follows:

		Correct tax	Overassessment
Year	Total taxable wages	Rate	Amount	Tax	Penalty	Interest
		Percent
1936 ..........	$9,291.89	1	$92.92	$111.04	$27.76	$31.99
1937 ...........	9,714.76	2	194.30	234.42	58.60	55.80
1938 ..........	13,952.83	3	418.58	360.26	90.06	64.23
1939 ...........	9,886.55	3	296.60	385.25	96.31	45.57

        The overassessments shown above were abated or refunded by the Commissioner as follows:

Year	Total	Abated	Refunded	Interest on refund
1936 ..........	$170.79	$109.75	$61.04	$5.95
1937 ...........	348.88	209.34	139.54	13.60
1938 ...........	514.55	333.56	180.99	17.64
1939 ...........	527.13	251.11	276.02	26.90

        The certificate of overassessment for the year 1936 contained the following statements:

        'Information submitted discloses that your total taxable wages for the year 1936 amounted to $9,291.89 instead of $20,396.15 on which the tax was previously computed.         'In the preparation of this certificate of overassessment consideration has been given to your claim for refund of $111.04 filed on November 9, 1943, and your claim for abatement of $109.75 filed on the same date.         'The amount of the overassessment is being abated, credited, or refunded as indicated below. (You will be relieved from the payment of any amount abated; if an overpayment has been made and other like taxes are due, credit will be made accordingly, and any amount refundable, with the interest allowable on the amount credited or refunded, is covered by a Treasury check transmitted herewith.)         'By direction of the Commissioner.'

        Similar statements (except as to amounts involved) were contained in the certificates of overassessment for the years 1937 to 1939, inclusive. Similar certificates of overassessment were issued and similar refunds were made to plaintiffs for the years 1940 and 1941.

        10. On December 13, 1944, the Deputy Commissioner addressed the following letter to plaintiffs:

        'Further consideration has been given to your liability for the tax imposed for the years 1936, 1937, 1938, and 1939 under Title IX of the Social Security Act, 42 U.S.C.A. § 1101 et seq., and the Federal Unemployment Tax Act, 26 U.S.C.A. Int.Rev.Code, § 1600 et seq., and to the claims for refund and abatement of a portion of the tax assessed for such years. It is contended that the amounts involved in the claims were erroneously assessed with respect to remuneration for services which constitute 'agricultural labor.' Amended returns were filed to report the wages of individuals who were not engaged in 'agricultural labor.'

        'In Bureau letter addressed to your representatives, Blair and Korner, Transportation Building, Washington, D. C., under date of October 7, 1941, it was held that the services performed by the individuals involved in the claims constitute 'employment.' The portion of such ruling which is applicable to the services performed prior to January 1, 1940, is in accordance with the ruling published as S.S.T. 125, C.B.1937-1, 397.

        'S.S.T. 125 has been modified and the ruling published as Em.T. 443, C.B.1943, 1078 represents the present position of the Bureau with respect to services performed prior to January 1, 1940. Such ruling holds that services performed prior to January 1, 1940, on a farm, in the employ of any person, in connection with the cultivation of the soil, the raising and harvesting of crops, or the raising, feeding, or management of livestock, bees, and poultry are excepted as 'agricultural labor' for Federal employment tax purposes.

        'In view of the foregoing, it appears that certain services performed prior to January 1, 1940, by the farm supervisors constitute 'agricultural labor.' However, since the information on file fails to segregate the agricultural services from the services which constitute employment, all of the services performed by the supervisors prior to January 1, 1940, must be considered as 'employment,' and the total remuneration paid to the individuals in question constitutes taxable wages.

        'The schedule submitted with the amended returns, Form 940, discloses that remuneration was paid to the supervisors for the years 1936, 1937, 1938, and 1939 in the respective amounts of $11,047.76, $11,698.31, $11,939.86 and $12,765.51. Such amounts have been added to the taxable wages reported on the amended returns and the tax recomputed accordingly as set forth below:

			Reported on amended return	Corrected
1936
Total taxablewages..........................			$ 9,921.89	$20,339.65
Tax (1% of wages)...................			92.92	203.40
Allowable credit for State contributions			None	None
Balance oftax...............................			92.92	203.40
Penalty (25% oftax).........................			...........	..........	$ 50.85
Less:
	Tax	Penalty
Original assessment ......	$203.96	$50.99
Less previous allowance ...	111.04	27.76
Netassessment...............................			...........	92.92	28.23
Additional tax and penalty due ...............			...........	110.48	27.62
1937
Total taxablewages..........................			9,714.76	21,413.07
Tax (2% ofwages)............................			194.30	428.26
Allowable credit for Statecontributions.....			None	None
Balance oftax...............................			194.30	428.26
Penalty (25% oftax).........................			...........	..........	107.07
Less:
	Tax	Penalty
Original assessment.......	$428.72	$107.18
Less previous
allowance..................	234.42	58.60
Netassessment...............................			...........	194.30	48.58
Additional tax and penalty due ...............			...........	233.96	58.49
1938
Total taxablewages..........................			13,952.83	25,892.69
Tax (3% ofwages)............................			418.58	776.78
Allowable credit for Statecontributions.....			None	None
Balance oftax...............................			418.58	776.78
Penalty (25% oftax).........................			...........	..........	194.20
Less:
	Tax	Penalty
Original assessment.......	$778.84	$194.71
Less previous
allowance..................	360.26	90.06
Netassessment...............................			...........	418.58	104.65
Additional tax and penaltydue...............			...........	358.20	89.55
1939
Total taxablewages..........................			9,886.55	22,652.06
Tax (3% ofwages)............................			296.60	679.56
Allowable credit for Statecontributions.....			None	None
Balance oftax...............................			296.60	679.56
Penalty (25% oftax).........................			...........	..........	169.89
Less:
	Tax	Penalty
Original assessment.......	$681.85	$170.46
Less previous
allowance..................	385.25	96.31
Netassessment...............................			...........	296.60	74.15
Additional tax and penaltydue...............			...........	382.96	95.74

        'The additional tax, together with interest and additional penalty, is being assessed and reported to the office of the Collector of Internal Revenue, Springfield, Illinois, which will issue notice and demand therefor. Payment should be made to the office of the collector and not to this office.'

        11. On December 27, 1944, the Commissioner made the following assessments against the plaintiffs of excise taxes, penalties, and interest for the years 1936 through 1939 as shown below:

Year	Tax	Penalty	Interest	Total
1936 ..	$110.48	$27.62	$51.29	$189.39
1937 ...	233.96	58.49	96.92	389.37
1938 ...	358.20	89.55	126.90	574.65
1939 ...	382.96	95.74	112.69	591.39

        No reassessments were made for 1940 and 1941.

        12. The amounts of the reassessments together with appropriate penalties and interest thereon were paid by plaintiffs on January 26, 1945, as follows:

Year	Tax	25% Penalty	Interest	5% Penalty	Interest	Total
1936 ..	$110.48	$27.62	$51.29	$9.47	$0.62	$199.48
1937 ...	233.96	58.49	96.92	19.47	1.28	410.12
1938 ...	358.20	89.55	126.90	28.73	1.88	605.26
1939 ...	382.96	95.74	112.69	29.57	1.94	622.90

        13. On March 26, 1945, plaintiffs filed claims for refund for the years 1936 through 1939 in the following amounts:

Year:	Amount
1936 ..	$199.48
1937 ...	410.12
1938 ...	605.26
1939 ...	622.90

        Each of these claims sets forth the following grounds for the amounts claimed:

        'The prior allowance of an overassessment, followed by the abatement in part and the refund in part of said overassessment pursuant to a certificate of overassessment, constituted an account stated and settled, which could not legally be upset or disturbed administratively. The reassessment and collection thereof, together with additional penalties and interest were therefore unlawful and erroneous.         'The taxable wages and the penalty liability under Title IX of the Social Security Act and F.U.T.A. did not exceed the amounts shown in C. of O. #777588, based upon the refund and abatement claims theretofore filed.'

        14. The claims referred to in finding 13 were rejected by the Commissioner by letter dated May 15, 1945, reading as follows:

        'Reference is made to your claims for refund, alleged overpayments of tax, penalty, and interest assessed under Title IX of the Social Security Act and the Federal Unemployment Tax Act as listed below:

Claim number:	Year	Amount claimed
806086 ........	1936	$199.48
806171 ........	1937	410.12
806087 ........	1938	605.26
806085 ........	1939	622.90

        'The basis of the claims is that assessment was erroneously made with respect to remuneration paid for services which constitute 'agricultural labor.'         'In Bureau letter dated December 13, 1944, you were advised that certain services performed by the farm supervisors prior to January 1, 1940, appeared to constitute 'agricultural labor'; that since the information on file failed to segregate the agricultural services from the services which constitute employment, all of the services performed by the supervisors must be considered as 'employment'; and that the total remuneration paid to such individuals constituted taxable wages.         'Inasmuch as no additional information has been submitted segregating the services performed by the farm supervisors which constitute 'agricultural labor' from the services which constitute 'employment,' the claims for refund are disallowed.         'This notice of disallowance is sent by registered mail in accordance with the provisions of Section 3772(a)(2) of the Internal Revenue Code, 26 U.S.C.A. Int.Rev.Code, § 3772(a)(2).         'By direction of the Commissioner.'

Findings Nos. 15 to 22, inclusive, are applicable to No. 46463.

        15. For the period January 1, 1937, to September 30, 1941, decedent failed to file employer's tax returns under the Federal Insurance Contributions Act, 26 U.S.C.A. Int.Rev.Code, § 1400 et seq., (formerly Title VIII, Social Security Act, 42 U.S.C.A. § 1001 et seq.), and such returns were prepared and filed on December 1, 1941, in behalf of decedent by a Deputy Collector under the provisions of Section 3612 of the Internal Revenue Code, 26 U.S.C.A. Int.Rev.Code, § 3612.

        The returns for the quarterly periods together with the amounts of tax, penalty, and interest shown thereon are as follows:

Quarter ended	Tax	Penalty	Interest	Total
3-31-37....	$150.46	$37.64	$42.88	$230.98
6-30-37....
9-30-37....	142.66	35.67	35.64	213.97
12-31-37....
3-31-38....	148.76	37.19	32.75	218.70
6-30-38....	89.14	22.29	18.27	129.70
9-30-38....	68.64	17.16	13.04	98.84
12-31-38....	56.14	14.04	9.82	80.00
3-31-39....	89.72	22.43	14.37	126.52
6-30-39....	96.14	24.04	13.94	134.12
9-30-39....	89.72	17.94	11.66	119.32
12-31-39....	89.72	4.49	10.32	104.53
3-31-40....	89.72	.......	8.99	98.71
6-30-40....	98.14	.......	8.34	106.48
9-30-40....	87.30	.......	6.55	93.85
12-31-40....	85.52	.......	4.70	90.22
3-31-41....	81.96	.......	3.29	85.25
6-30-41....	92.18	.......	2.30	94.48
9-30-41....	81.96	.......	.82	82.78

        The above amounts were duly assessed.

        16. On September 25, 1942, decedent filed employer's tax returns under the Federal Insurance Contributions Act (formerly Title VIII, Social Security Act) for the quarterly periods shown below, such returns disclosing the taxes indicated, and such taxes together with penalties and interest were duly assessed by the Commissioner:

Quarterly Period	Tax	Penalty	Interest	Total
12-31-41 ...	$81.96	$20.49	$3.61	$106.06
3-31-42 ....	82.96	20.74	2.41	106.11
6-30-42 ....	94.36	9.44	.86	104.66

        17. On the dates shown below, the plaintiffs, for the quarterly period indicated, filed employer's tax returns under the Federal Insurance Contributions Act (formerly Title VIII, Social Security Act) disclosing the taxes indicated, and such taxes were duly assessed by the Commissioner:

Date return filed:	Quarterly period	Tax
10-31-42 .............	9-30-42	$82.96
11- 9-43 ............	12-31-42	......
1-15-43 ............	12-31-42	98.08
4-24-43 .............	3-31-43	117.26
7-21-43 .............	6-30-43	129.62
10- 8-43 .............	9-30-43	112.52

        18. On September 25, 1942, decedent paid to the Collector excise taxes under Title VIII aggregating $1,637.90 for the period January 1, 1937, to September 30, 1941. On the same date, decedent paid $259.28 as excise taxes for the period October 1, 1941, to June 30, 1942. On November 17, 1942, plaintiffs paid as penalties and interest on taxes paid for the period October 1, 1941, to June 30, 1942, the sum of $57.55. On October 31, 1942, plaintiffs paid taxes for the quarter ended September 30, 1942, in the amount of $82.96 and on January 15, 1943, plaintiffs paid taxes for the quarter ended December 31, 1942, in amount of $98.08. On April 24, 1943, plaintiffs paid as taxes for the quarter ended March 31, 1943, the amount of $117.26; on July 21, 1943, plaintiffs paid as taxes for the quarter ended June 30, 1943, the amount of $129.62; and on October 8, 1943, plaintiffs paid as taxes for the quarter ended September 30, 1943, the amount of $112.52.

        19. On November 9, 1943, plaintiffs, by Thomas A. Scully, executor, filed claims for refund for the periods shown below in the amounts set forth:

Period:	Amount
1- 1-37 to 10-28-42 ..	$1,307.60
10-29-42 to 4- 1-43 ......	98.27
3-30-43 to 9-30-43 .....	142.02
10- 1-41 to 7- 1-42 ......	57.55

        All of these claims alleged as grounds for the refund that the employees to whom the taxes related were engaged in agricultural pursuits and, therefore, were not subject to the tax.

        20. On November 9, 1943, plaintiffs filed a claim in abatement of penalties and interest for the period January 1, 1937, to October 1, 1941, in amount of $471.01 alleging as grounds therefor that as the wages subjected to tax were paid to agricultural employees, plaintiffs were not liable for these penalties and interest.

        The claim was rejected by the Commissioner on October 13, 1944.

        21. On November 24, 1944, plaintiffs paid to the appropriate Collector the sum of $471.01, referred to in finding 20, constituting penalties and interest for the period January 1, 1937, to October 1, 1941.

        22. On March 26, 1945, plaintiffs filed a claim for refund of penalties and interest paid for the period January 1, 1937, to September 30, 1941, in amount of $471.01, alleging as grounds therefor that the employees to whom the taxes related were engaged in agricultural pursuits and therefore were exempt from the tax.

        This claim was rejected by the Commissioner by letter dated May 3, 1945.

         The remaining findings relate to both No. 46462 and No. 46463.

        23. Decedent's father came to this country in 1850 from England. His family had owned agricultural lands in Ireland for about four hundred years, which lands had descended from father to son. Upon arriving in this country and after investigation, decedent's father (who was a highly educated man and an expert agriculturist) decided to locate in Illinois where he acquired large tracts of land, some of which he bought directly from the United States Government. He also acquired lands in other States.

        For some time prior to 1896 decedent worked for his father in the latter's agricultural business and continued that work until 1906 when his father died. After his father's death, decedent and his brother, Thomas A. Scully, worked for their mother in the same agricultural business until 1918, at which time their mother divided the agricultural lands between the decedent and his brother. After the division of the lands the decedent owned the farm properties in Marion and Marshall Counties, Kansas, and Gage and Nuckolls Counties, Nebraska, and his brother, Thomas A. Scully, owned farm land in Illinois. In addition, the decedent acquired certain farm lands in Louisiana in 1911 or 1912. During the period involved in these proceedings, the decedent owned the foregoing farm lands in Nebraska, Kansas, and Louisiana, though the property in Louisiana is not in controversy here as plaintiffs concede that the employees on the land located in Louisiana are taxable under the Social Security Act. The total acreage in Kansas and Nebraska was approximately 126,000 acres.

        24. Decedent's father was interested in conservation and keeping his lands in a high state of cultivation. This work was continued by the decedent and his brother, Thomas A. Scully. In the early years of decedent's operations, conservation of the soil was not considered a major problem, more attention being paid to increasing the fertility of the soil. However, during the past five or ten years, soil conservation has been the major objective on these properties, and that has been accomplished in various ways, including measures to prevent erosion such as terracing and strip farming, building dams and waterways and making proper provision for rotation of crops, not only as to grains but also as to legumes and grasses. While these measures tended to improve the fertility of the soil and thereby increase the income of the tenants, their primary purpose was to conserve the land in a high state of cultivation.

        25. The decedent's general office was located in Lincoln, Illinois, he and his brother, Thomas A. Scully, occupying the same offices. A similar arrangement has been continued since the death of the decedent. In addition the decedent maintained offices or headquarters for his subagents in Kansas and Nebraska, including offices at Beatrice and Nelson, Nebraska, and Marion, Kansas.         The decedent employed Messrs. Trapp and Ryan as his general or head agents in the management and operation of his properties. They are located in Lincoln. Decedent and these general agents determined the general policies for the farm business and actively supervised the carrying out of these policies which included frequent personal inspections of the farms and work being done and discussions with the subagents and tenants.

        26. Of the lands owned by the decedent, 53,490.84 acres were located in Marion County, Kansas, and 1,150.37 acres in Dickinson County, Kansas, of which about 17,000 acres were in pasture land and the balance in farm land. In addition, decedent owned 40,684.49 acres in Nuckolls County, Nebraska, 22,815.42 acres in Gage County, Nebraska, and 7,896.31 acres in Marshall County, Kansas. Of the last two acreages named, about 7,000 or 8,000 acres were in pasture land. All of the decedent's farm lands were leased on a cash rental basis, such leases running for one year. The average size of the farms so leased was 160 acres. The turnover among the tenants was very small, the average tenure under one subagent being from sixteen to seventeen years and one tenant having rented the same property for fifty-eight years prior to his death and his widow having continued the use of the same property for five years since.

        27. In carrying out his operations decedent employed subagents who worked under his directions and the directions of his head agents, Trapp and Ryan. These individuals were men who were trained either by education or experience or both along agricultural lines. They had their headquarters in the offices maintained by decedent and did not live on the farms though more of their working time was spent outside of the offices on the farms than in their offices.

        28. The management and operation of decedent's properties through head agents and subagents were conducted in substantially the same manner as those properties owned by Thomas A. Scully and referred to in docket Nos. 46388 and 46389. In some respects problems requiring the attention of the subagents were present in decedent's operations which were not present in the case of Thomas A. Scully, and likewise were present in the case of Thomas A. Scully and not in the case of decedent, but in general the problems were similar and the subagents performed their duties with respect thereto in a similar manner. Decedent's subagents supervised the farms operated by the tenants to insure compliance with the leases, assisted the tenants in selecting and obtaining seeds, supervised fertilization of the soil, assisted the tenants in running contour lines and in terracing, cooperated closely with the county soil conservation services with the view of preventing erosion, measured the lands devoted to various crops to ascertain whether the tenants were adhering to prescribed crop rotation and worked closely with the tenants on their crop rotation plans, assisted the tenants in the selection and breeding of stock and furnished technical information with respect to stock diseases, assisted the children of tenants in joining 4-H Clubs, furnished advice to tenants as to what they must do to obtain payments from the Agricultural Conservation Service, instructed tenants in controlling insect and weed pests, assisted in rodent control, supervised stock raising on pasture lands to determine whether such lands were overgrazed, and collected cash rentals from the tenants.

        29. The subagents maintained a field book for each tenant which contained data of a similar nature to that contained in the field books described in connection with the operations of Thomas A. Scully, and which was necessary in performing the duties enumerated in the preceding finding. At times they made some preliminary entries in these books in the field as they obtained data but in most respects the information was collected in the field and recorded in the office.

        30. The subagents did not maintain a record of the time consumed in the performance of their various individual duties nor of the time they worked in their offices or out on the farms. However, they were on the farms more than in the office, one subagent giving an estimate for the former as at least 65 percent, and another at 70 to 75 percent.         31. The following tabulation shows the salaries paid by decedent during the calendar years 1936 to 1939, inclusive, and involved in docket No. 46462 under Title IX of the Social Security Act, all of the individuals named being subagents whose duties have been heretofore described:

Subagents affected	1936	1937	1938	1939
Frank Turner ...........	$1,144.10	$1,196.39	$1,322.86	$1,173.51
Chas. C. Niederhouser ...	2,250.00	2,250.00	2,500.00	2,500.00
Allen K. Kimble .........	2,160.00	2,160.00	2,400.00	2,400.00
P. A. Peterson ..........	1,651.66	1,999.92	2,000.00	2,000.00
Harold D. Eitzen ........	1,250.00	1,500.00	1,125.00	.........
W. W. Hawley ............	2,592.00	2,592.00	2,592.00	2,592.00
John M. Quackenbush ....	.........	.........	.........	2,100.00
Total ...............	11,047.76	11,698.31	11,939.86	12,765.51

        32. The following tabulation shows the salaries paid by decedent and decedent's estate to his subagents from January 1, 1937, to September 30, 1943, which were subjected to tax by the Commissioner under Title VIII of the Social Security Act and the Federal Insurance Contributions Act:

Subagents affected	1937	1938	1939	1940
Frank Turner ..........	$1,196.39	$1,332.86	$1,173.51	$1,145.21
Chas. C. Niederhouser ..	2,250.00	2,500.00	2,500.00	2,500.00
Allen K. Kimble ........	2,160.00	2,400.00	2,400.00	2,400.00
P.A. Peterson ..........	1,999.92	2,000.00	2,000.00	2,000.00
Harold D. Eitzen .......	1,500.00	1,125.00	.............	............
W.W. Hawley ...........	.........	...............	2,592.00	2,592.00
John M. Quackenbush ...	.........	...............	2,100.00	2,100.00
Total ...............	9,106.31	9,347.86	12,765.51	12,737.21

         

Subagents affected	1941	Jan. 1 to Oct. 28, 1942 [FN1]	Oct. 29, 1942, to Mar. 31, 1943	Apr. 1 to Sept. 30, 1943
Chas. C. Niederhouser .	$2,499.96	$2,083.34	$1,041.69	$1,541.67
Allen K. Kimble ........	2,400.00	2,000.00	1,000.00	1,491.66
P.A. Perterson .........	2,000.00	1,666.68	833.38	1,233.34
W.W. Hawley ............	2,592.00	2,160.00	1,080.00	1,534.00
John M. Quackenbush ....	2,100.00	1,916.60	958.30	1,299.98
Total ..............	11,591.96	9,826.62	4,913.37	7,100.65

        Neither the decedent nor the decedent's estate has been reimbursed by the employees for any of the taxes paid under Title VIII on the compensation referred to in this finding.

        PER CURIAM.

        For the reasons set out in the opinion this day rendered in the case of Scully v. United States, D.C., 70 F.Supp. 239, plaintiffs are entitled to recover in case No. 46462 the taxes and interest and penalties for the years 1936 to 1939, both inclusive, in the amount of $1,837.76, together with interest as provided by law, and they are also entitled to recover in case No. 46463 taxes and interest and penalties from January 1, 1937, to September 30, 1943, both inclusive, in the amount of $2,076.45, together with interest as provided by law. Judgment for these amounts will be entered. It is so ordered.