George O. Lethert, District Director of Internal Revenue v. Culbertson's Cafe, Inc.

BLACKMUN, Circuit Judge.

Culbertson’s Cafe, Inc., by this action, seeks recovery of additional federal cabaret excise taxes assessed against it and paid for the calendar quarter ended June 30, 1956. The case presents the narrow and perhaps first impression issue whether the tax reaches payments made during cabaret status for items and service supplied by the establishment before it attained that status. The taxpayer prevailed in the district court. Although the amount of additional tax, exclusive of interest, now in controversy for the quarter is approximately $4,400, the parties advise us,…