Schoenrade v. Tracy

The sole question presented by these cases is the validity of the tax assessments made after the expiration of the three-year statute of limitations, which was in effect when the income tax returns were filed, but prior to the expiration of the four-year statute of limitations, which became effective after the income tax returns were filed.

The taxpayers argue that a legislative change in the statute of limitations, made after the income tax returns were filed, may not prolong the statute of limitations in effect at the time the returns were filed. The Tax Commissioner contends that when an…