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ASSESSMENTS AND COLLECTIONS 
_SEo. 3225. [Amended by sec. 1316 (b), Revenue Act of 1918, and reenacted 
in see. 1323 Revenue Act of 1921.] When a second assessment is made in case 
of any list, statement, or return, which in the opinion of the collector or 
deputy collector was false or fraudulent, or contained any understatement or 
undervaluation, such assessment shall not be remitted, nor shall taxes col- 
lected under such assessment be refunded, or paid back, or recovered by any 
suit, unless it is proved that such list, statement, or return was not willfully 
false or fraudulent and did not contain any willful understatement or under- 
valuation. 
Repealed by section 1015, Revenue Act of 1924. . 
(Bergdoll v. Pollock, 95 U. 8., 337.) 
Sec. 3226. No suit shall be maintained in any court for the recovery of 
any internal tax alleged to have been erroneously or illegally assessed or 
collected, or of any penalty claimed to have been collected without authority, 
or of any sum alleged to have been excessive or in any manner wrongfully 
nollected, until appeals shall have been duly made to the Commissioner of 
[nternal Revenue, according to the provisions of law in that regard, and the 
regulations of the Seretary of the Treasury established in pursuance thereof, 
and a decision of the Commissioner has been had therein: Provided, That if 
such decision is delayed more than six months from the date of such appeal, 
then the said suit may be brought, without first having a decision of the 
Commissioner at any time within the period limited in the next section. 
Amended by section 1318 of the Revenue Act of 1921, act of March 4, 1923 
(42 Stat., 1505), and again by section 1014 of the Revenue Act of 1924. 
Protest.—It is a principle universally recognized that an action in a court 
can not be maintained for the recovery back of money paid in discharge of a tax 
illegally assessed, unless the payment was made under protest. But that prin- 
ome has been held by the Commissioner of Internal Revenue and other officers 
of the department as too technical and too exacting for application to claims 
for refund of taxes under this section. (Real Estate Savings Bank ov. United 
States (1880), 16 Ct. Cis, 335; 27 Int. Rev. Rec, 154; Fox v. Edwards, 281 
Fed., 669; T. D. 3445.) 
No written notice of protest required. (Wright . Blakeslee, 101 U. 8. 174: 
26. Int. Rev. Rec., 179.) : 
Rule as to protest. (Chesebrough 7. United States, 192 U. 8, 2533 T. D. 
747: United States v. New York and Cuban Mail Steamship Co., 200 U. 8, 
188; 25 Op. Atty. Gen, 605; 26 Id., 472.) : ) 
o Proiest (Abrast Realty Co. v. Maxwell, 206 Fed., 333: Beer o. Moffatt, 192 
Ted., y . 
What may constitute duress. (Cambria Steel Co. v. McCoach, 225 Fed., 278.) 
Voluntary payment. (Railroad Co. wv. Commissioners, 98 U. S., 541.) 
Though there is.some conflict in the dicta of the Supreme Court, . the true 
doctrine is that, when taxes are paid under protest or with notice that the 
payer contends that they are illegal and intends to institute suit to compel their 
repayment, a sufficient foundation for suit to recover has been established. 
(Herold ». Kahn (1908), 159 Fed, 608.) 
The apprehension of being stopped in business is sufficient duress to make 
payments involuntary. (Swift Co. v. United States, 111 U. 8., 22.) 
Condition precedent to suit under this section not applicable to inheritance 
taxes imposed by act of June 13, 1898, if taxpayer has complied with section 
3 of the act of June 13, 1898, and section 2 of the act of July 27, 1912, and 
pa claim for refund. (Rand wv. United States, 249 U. 8. 503: T. D 
Spe. 3227. No suit or proceeding for the recovery of any internal tax alleged 
to have been erronecusly or illegally assessed or collected, or of any penalty 
alleged to have been collected without authority, or of any sum alleged to have 
been excessive or in any manner wrongfully collected, shall be maintained in 
any court unless the same is prought within two years next after the cause 
of action accrued: Provided, That actions for such claims which accrued prior 
to June six, eighteen hundred and seventy-two, may be brought within one 
year from said date; and that where any such claim was pending before the 
Commissioner, as provided in the preceding section, an action thereon may be 
brought within one year after such decision and not after. But no right of 
action which was already barred by any statute on the said date shall be 
revived by this section. 
This section was repealed by section 1319, Revenue Act of 1921. 
Suits against the Government for refunds of parts of excise and income 
taxes paid held barred, under R. 8. 8226; by failure to appeal to the Commissioner, 
ind, under R. 8. 3227, by failure to sue in two years after accrual of cause of 
action ; and are not extended by amended returns filed by the Commissioner to 
increase payment. (Maryland Casualty Co. v. United States. 251 U. 8., 842: