339 Reporter's Statement of the Case 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: 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: 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: 13. On March 26, 1945, plaintiffs filed claims for refund for the years 1936 through 1939 in the following amounts: 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: 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 Reporter's Statement of the Case 108 C. Cls. 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. 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 (formerly Title VIII, Social Security Act), 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. The returns for the quarterly periods together with the amounts of tax, penalty, and interest shown thereon are as follows: 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: 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: 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: 1-1-37 to 10-28-4210-29-42 to 4-1-43_. 3-30-43 to 9-30-43. 10- 1-41 to 7-1-42 Amount 57.55 |