Payne v. United States

This is a suit for the recovery of $15,486.60 in federal income tax paid for the year 1966, plus interest on that amount. The dispute before us involves the relationship between the net-operating-loss carryback provision of Internal Eevenue Code section 172 and the income-averaging provision of former section 1301. In our opinion, plaintiffs may not create a double tax benefit by combining the operations of these two relief provisions. Consequently, we hold for the Government.

None of the facts is controverted. In 1966, plaintiff William Payne received $713,625 in payment for legal services…