Morgan Guaranty Trust Co. v. United States

The plaintiffs are the executors of the estate of Eichard N. Eyan. They overpaid the Federal estate taxes on his estate and, in due course, the overpayment, which amounted to $255,160.94, was refunded to them. Interest was paid them on $93,893.03 of the amount refunded, but no interest was paid on the other $161,267.91 of the refund. The instant suit is for interest on the latter sum.

The Government’s refusal to pay the interest in question was based on section 813(b) of the Internal Eevenue Code of 1939, 26 U.S.C. (1952 ed.) § 813(b). That section provides for a credit, up to a specified…