United States v. Wurts, 303 U.S. 414 (1938). · Go Syfert
United States v. Wurts, 303 U.S. 414 (1938). Cases Citing This Book View Copy Cite
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The government may recover funds erroneously paid by its agents unless Congress clearly manifests an intention to create a statutory barrier to such recovery.

The United States brought suit to recover an erroneous tax refund that was allowed by the Commissioner but paid to the taxpayer more than two years after the allowance. The central question is whether the two-year limitation period under the Revenue Act of 1928 begins upon the allowance of the refund or upon its actual payment. The Court holds that the government's right to recover funds paid by mistake is not barred unless Congress has clearly manifested its intention to create a statutory barrier. Because the statute of limitations begins to run only when the right to sue has accrued, the period runs from the date of payment rather than the date of allowance.

853 citation events (226 in the last 25 years) across 76 distinct courts.
Treatment trajectory · 1938 → 2026 · click a year to view as-of
1938 1982 2026
Cited for
At page 415 Government's right to recover wrongfully paid funds32 citing casesThe Government by appropriate 23 action can recover funds which its agents have wrongfully, erroneously, or illegally paid. ‘No 24 statute is necessary to authorize the United States to sue in such a case. The right to sue is 25 independent of statute, . . . .1 citing court put it this way · also cited as 82 L. Ed. at 934 · 31 listed here
  • Osinek v. Kaiser Permanente, No. 3:13-cv-03891 (N.D. Cal. Nov. 14, 2022). 2 cites
    (The Government by appropriate 23 action can recover funds which its agents have wrongfully, erroneously, or illegally paid. ‘No 24 statute is necessary to authorize the United States to sue in such a case. The right to…)
  • Plastic Film, LLC v. United States of Am. & United States Internal Revenue Serv., No. 5:25-cv-00030 (S.D. Miss. June 22, 2026). 2 cites
    See United States v. Wurts, 303 U.S. 414 , 415-16 (1938) (“The Government by appropriate action can recover funds which its agents have wrongfully, erroneously, or illegally paid.”).
  • United States v. Philadelphia Marine Trade Ass'n/Int'l Longshoremen's Ass'n Vacation Fund, 471 F. Supp. 2d 518 (E.D. Pa. 2007).published 3 cites
    See also United States v. Wurts, 303 U.S. 414, 415-416 , 58 S.Ct. 637 , 82 L.Ed. 932 (1938) (“The Government by appropriate action can recover funds which its agents have wrongfully, erroneously, or illegally paid.”).
  • United States v. MacPhail, 149 F. App'x 449 (6th Cir. 2005).unpublished 3 cites
    R.R. v. United States, 164 U.S. 190, 212 , 17 S.Ct. 45 , 41 L.Ed. 399 (1896) (reaffirming “the principle that parties receiving moneys illegally paid by a public officer are liable ex aequo et bono to refund them.”); United States v. Burch…
  • Quaresma v. The Journey of Hope, No. 1:20-cv-00451 (D.R.I. Mar. 29, 2024).
    To plead payment by mistake, a plaintiff must show that the Government “made... payments under an erroneous belief which was material to the decision to pay.” United States v. Mead, 426 F.2d 118, 124 (9th Cir. 1970) (citing United States v…
  • Square One Armoring Servs. Co. v. United States, No. 16-124 (Fed. Cl. Sept. 22, 2022).published
    A. Defendant Established a Prima Facie Case for Mistake of Fact Overpayments “The Government by appropriate action can recover funds which its agents have wrongfully, erroneously, or illegally paid.” United States v. Wurts, 303 U.S. 414, 4…
  • United States of Am. ex rel. Uri Bassan v. Omnicare, Inc., No. 1:15-cv-04179 (S.D.N.Y. Mar. 19, 2021).
    Moreover, it is long established that the “Government by appropriate action can recover funds which its agents have wrongfully, erroneously, or illegally paid.” United States v. Wurts, 303 U.S. 414, 415 (1938).
  • Vanquishworldwide, LLC v. United States, No. 17-96 (Fed. Cl. Oct. 18, 2018).published
    (government is entitled to recover fixed fee that it erroneously approved for payment)
  • Farrington v. Beers, No. 2013-1582 (D.D.C. Mar. 1, 2018).published
    Under the common law theory of “recoupment of public funds paid by mistake,” the government may “recover funds 20 which its agents have wrongfully, erroneously, or illegally paid.” Alsco-Harvard Fraud Litig., 523 F. Supp. 790, 797 (D.D.C.…
  • Modoc Lassen Indian Hous. Auth. v. United States Dep't of Hous. & Urban Dev., 881 F.3d 1181 (10th Cir. 2017).published 10 cites
    Appellants’ Opening Br. at 44 (citing United States v. Wurts, 303 U.S. 414, 415 (1938)).
Show 21 more citing cases
  • Icnu v. Bpa, No. 11-71368 (9th Cir. Sept. 18, 2014).published 2 cites
    To the contrary, Wurts suggested that Congress may statutorily preclude agencies from recovering erroneously paid funds so long as it “clearly manifest[s] its intention” to do so. 303 U.S. at 416 (internal quotation marks omitted).
  • Lenox, Inc. v. Dir., Div. of Taxation, 20 N.J. Tax 464 (N.J. Tax Ct. 2002).published
    (dtations omitted)
  • United States v. Est. of Cole, 620 F. Supp. 126 (W.D. Mich. 1985).published
    Further, the fact that the Veterans Administration failed to take timely action to terminate William Cole’s benefits did not preclude overpayment nor obviate the indebtedness that resulted from the overpayment. “ ‘The Government by appropr…
  • Lumarose Equip. Corp. v. City of Springfield, 446 N.E.2d 1087 (Mass. App. Ct. 1983).published
    Ry. v. United States, 164 U.S. 190, 205, 208-209, 210-212 (1896); United States v. Wurts, 303 U.S. 414, 415-416 (1938); Heidt v. United States, 56 F.2d 559, 560 (5th Cir. 1932); J.W.
  • United States v. Watkins, 96 F.R.D. 556 (E.D. Tenn. 1982).published
    The right to sue is independent of statute, ’ * * * Ordinarily, recovery of Government funds, paid by mistake to one having no just right to keep the funds, is not barred by the passage of time. * * *” United States v. Wurts (1938), 303 U.…
  • United States v. Rainbolt, 543 F. Supp. 580 (E.D. Tenn. 1982).published
    The right to sue is independent of statute, ... ’ * * * Ordinarily, recovery of Government funds, paid by mistake to one having no just right to keep the funds, is not barred by the passage of time. * * * ” United States v. Wurts (1938), 3…
  • Alsco-Harvard Fraud Litig. Consol. Cases, 523 F. Supp. 790 (D.D.C. 1981).published
    This common law basis for recovery of funds runs against a person “who received them by mistake and without rights,” United States v. Wurts, 303 U.S. at 416 , 58 S.Ct. at 638 (emphasis added) — these are the material elements that must be…
  • Mount Sinai Hosp. of Greater Miami, Inc. v. Caspar Weinberger, Sec'y of Health, Educ. & Welfare, & Blue Crossof Florida, Inc., 517 F.2d 329 (5th Cir. 1975).published
    United States v. Wurts, 303 U.S. 414, 415 , 58 S.Ct. 637, 638 , 82 L.Ed. 932, 934 (1938); United States v. Barlow, 132 U.S. 271, 279-280, 281-282 , 10 S.Ct. 77, 79-80 , 33 L.Ed. 346, 351-352 (1889); Weiss v. United States, 296 F.2d 648 (CA…
  • Am. Fid. Fire Ins. v. United States, 206 Ct. Cl. 570 (Ct. Cl. 1975).published
    “The Government by appropriate action can recover funds which its agents have wrongfully, erroneously, or illegally paid.” 7 United States v. Wurts, 303 U.S. 414, 415 (1938).
  • Hursh Est., 42 Pa. D. & C.2d 189 (1966).published
    In United States v. Wurts, 303 U. S. 414, 415, 416 , the Supreme Court said this: “The Government by appropriate action can recover funds which its agents have wrongfully, erroneously, or illegally paid. ‘No statute is necessary to authori…
  • Acme Process Equip. Co. v. United States, 171 Ct. Cl. 251 (Ct. Cl. 1965).published
    The well-established doctrine has it that “the Government by appropriate action can recover funds which its agents have wrongfully, erroneously, or illegally paid. * * * Ordinarily, recovery of Government funds, paid by mistake to one havi…
  • Aetna Cas. & Sur. Co. v. United States, 208 Ct. Cl. 515 (Ct. Cl. 1975).published
    See United States v. Wurts, 303 U.S. 414, 415 (1938); American Fidelity Fire Ins.
  • Acme Process Equip. Co. v. United States, 347 F.2d 538 (1st Cir. 1965).published
  • United States v. Systron-Donner Corp., 486 F.2d 249 (9th Cir. 1973).published
  • United States Ex Rel. Ramadoss v. Caremark Inc., 586 F. Supp. 2d 668 (W.D. Tex. 2008).published
  • A. C. Davenport & Son Co. v. United States, 538 F. Supp. 730 (N.D. Ill. 1982).published
  • United States v. Medica-Rents Co., 285 F. Supp. 2d 742 (N.D. Tex. 2003).published
  • Lummi Tribe of the Lummi Reservation v. United States, 106 Fed. Cl. 623 (Fed. Cl. 2012).published
  • United States v. Goldberg, 159 F. Supp. 151 (E.D. Pa. 1956).published
  • Collins v. Donovan, 661 F.2d 705 (8th Cir. 1981).published
  • United States of Am. ex rel. v. Advocate Health & Hospitals Corp., No. 1:20-cv-01243 (C.D. Ill. Apr. 5, 2023).
At page 416 Government's right to recover erroneously paid funds22 citing cases“the government's right to recover funds, from a person who received them by mistake and without right, is not barred unless congress has 'clearly manifested its intention' to raise a statutory barrier.”10 citing courts quote it
Show 12 more citing cases
At page 414 “the government by appropriate action can recover funds which its agents have wrongfully, erroneously, or illegally paid.”5 citing cases18 citing courts quote it
At page 417 Determining when erroneous refund claim accrues6 citing casesnoting that the government “might—even after a check was signed and mailed—cancel the payment” of an erroneous refund3 citing courts put it this way · 5 listed here
  • United States v. Llwellyn Greene-Thapedi, 398 F.3d 635 (7th Cir. 2005).published 5 cites
    Id. at 418 (“Obviously, the Govern- ment had no right to sue this taxpayer to recover money before money had been paid to him.”).
  • United States v. Jeffrey Page, No. 21-17083 (9th Cir. Sept. 12, 2024).published 3 cites
    (noting that the government “might—even after a check was signed and mailed—cancel the payment” of an erroneous refund)
  • United States v. Jeffrey Page, 116 F.4th 822 (9th Cir. 2024).published 3 cites
    (noting that the government “might—even after a check was signed and mailed—cancel the payment” of an erroneous refund)
  • O'Gilvie v. United States, 519 U.S. 79 (1996).published 2 cites
    That conclusion is consistent with dicta in an earlier case from this Court, United States v. Wurts, 303 U. S. 414, 417-418 (1938), as well as with this Court's normal practice of construing ambiguous statutes of limitations in Government…
  • Turnage v. Britton, 29 F.4th 232 (5th Cir. 2022).published
58 S. Ct. at 638 cited at this page2 citing cases
  • United States v. Gen. Dynamics Corp., 19 F.3d 770 (2d Cir. 1994).published
    The right to sue is independent-of statute_’” Id. at 415 , 58 S.Ct. at 638 (footnote omitted) (quoting United States v. Bank of the Metropolis, 40 U.S. (15 Pet.) 377, 401 , 10 L.Ed. 774 (1841)).
  • Alsco-Harvard Fraud Litig. Consol. Cases, 523 F. Supp. 790 (D.D.C. 1981).published
    This common law basis for recovery of funds runs against a person “who received them by mistake and without rights,” United States v. Wurts, 303 U.S. at 416 , 58 S.Ct. at 638 (emphasis added) — these are the material elements that must be…
1 C.B. at 330 cited at this page1 citing case
  • Est. of Cristofani v. Comm'r, 97 T.C. 74 (Tax Ct. 1991).published
    Rul. 85-24, 1985- 1 C.B. 329, 330 (“When a trust instrument gives a beneficiary the power to demand immediate possession of corpus, the beneficiary has received a present interest.
58 S. Ct. at 639 cited at this page1 citing case
  • Doolin v. United States, 737 F. Supp. 732 (N.D.N.Y. 1990).published
    As is apparent from the text of the statute and as the Supreme Court observed in United States v. Wurts, 303 U.S. 414 , 58 S.Ct. 637 , 82 L.Ed. 932 (1938), in the case of a refund the interest period “terminates with the allowance of the r…
1 C.B. at 329 cited at this page1 citing case
At page 418 Obviously, the Govern- ment had no right to sue this taxpayer to recover money before money had been paid to him.1 citing case1 citing court put it this way
  • United States v. Llwellyn Greene-Thapedi, 398 F.3d 635 (7th Cir. 2005).published 5 cites
    (Obviously, the Govern- ment had no right to sue this taxpayer to recover money before money had been paid to him.)
Other citing cases10 with no pin cite or quoted language on record
Retrieving the full opinion text from the archive…
United States
v.
Wurts
499.
Supreme Court of the United States.
Mar 14, 1938.
Published opinion
303 U.S. 414
1938 U.S. LEXIS 406
Mr. Arnold Raum, with whom Solicitor General Reed, Assistant Solicitor General Bell, Assistant Attorney General Morris, and Messrs. Sewall Key and J. Louis Monarch were on the brief, for the United States., Mr. Claude C. Smith, with whom Messrs. Bussell Duane and Sanford D. Beecher were on the brief, for respondent.
Black, Cardozo, Reed.
Cited by 255 opinions  |  Published
5 passages pin-cited by 7 cases
Pinpoint authority: #13,243 of 633,719
Citer courts: Fourth Circuit (3) · Sixth Circuit (3) · Federal Circuit (3) · District of Columbia Court of … (3) · E.D. Pennsylvania (3) · Federal Claims (3)
Mr. Justice Black

delivered the opinion of the Court.

Under the Revenue Act of 1928, [1] forbidding suit by the United States to recover an erroneous tax refund unless brought “within two years after the making of such refund,” does the two year limitation begin when the refund is allowed or when it is paid?

The Court of Appeals affirmed [2] the District Court’s judgment holding the Government barred by this limitation because the present suit was not brought within two years after the Commissioner allowed the refund by signing the schedule of over-assessments.

The facts show that:

March 15, 1932, the Commissioner erroneously approved a refund of taxes paid by respondent for the year 1929. April 30, 1932, a check was mailed to the taxpayer for this erroneous refund. April 26, 1934, more than two years after the allowance of the refund, but less than two years after actual payment, the Government brought this suit to recover the erroneous refund.

The Government by appropriate action can recover funds which its agents have wrongfully, erroneously, or illegally paid. [3] “No statute is necessary to authorize the United States to sue in such a case. The right to sue is independent of statute, . . .” United States v. Bank of the Metropolis, 15 Pet. 377, 401. Section 610 of the[*416] 1928 Act, relied upon as barring recovery of this erroneous and unwarranted tax refund, does not grant the Government a new right, but is ,a¡ limitation of the Government’s long-established right to sue for money wrongfully or erroneously paid from the public treasury. Ordinarily, recovery of Government funds, paid by mistake to one having no just right to keep the funds, is not barred by the passage of time. [4] There is no contention here that respondent has any right to retain this refund erroneously paid by the Government. His defense is that the statutory bar prevents recovery. The Government’s right to recover funds, from a person who received them by mistake and without right, is not barred unless Congress has “clearly manifested its intention” [5] to raise a statutory barrier.

Section 610—urged by respondent as a statutory barrier—requires that the Government bring suit “before the expiration of two years after the making of such [erro neous] refund. . . Respondent contends that the Revenue Act of 1932 [6] indicated Congressional intent to designate the date of allowance of a refund (the date the Commissioner signs the schedule of over-assessments) as the date of refund for computing the period of limitations under § 610. The 1932 Act provides:

“Where the Commissioner has (before or after June 6, 1932) signed a schedule of overassessments in respect of any internal revenue tax imposed by [the Revenue Act of 1932] or any prior revenue Act, the date on' which he first signs such schedule (if after May 28, 1928) shall be considered as the date of allowance of refund or credit in respect of such tax.” This Act in no manner[*417] relates to limitations on suits for erroneous refunds. It has no purpose in common with § 610 of the 1928 Act. The 1932 Act throws no light on the meaning of § 610.

Section 610 is clear when its words are given their commonly accepted import. “Congress may well be supposed to have used language in accordance with the common understanding.” [7] Webster’s New International Dictionary (2d ed., Unabridged) defines “refund” as “that which is refunded” and defines the transitive verb as: “to return (money) in restitution, repayment . . .” Only by ignoring the common understanding of words could “making ... [a] refund” be considered synonymous with “allowing a refund.”

That Congress had in mind the separate and distinct meanings of these two expressions is clearly demonstrated in House Report No. 2, 70th Congress, 1st Session, p. 34, 36, containing the Committee Report on the Revenue Act of 1928:

“The section (610) provides that any erroneous refund, . . . may be recovered by suit brought in the name of the United States if such suit is begun within two years after the making of the refund.”

Immediately following, in referring to § 614, the Report stated:

“The principal change made in existing law is that in the case of a refund the interest period now terminates with the allowance of the refund, a date which often •precedes the actual making of the refund . . .”

The Commissioner’s signature on a schedule of over-assessments does not finally establish a claimant’s right to a refund and does not preclude further investigation and consideration of the claim. The Commissioner could later take his signature from the schedule and as pointed out by this Court might—even after a check was signed[*418] and mailed—cancel the payment and revoke the authority of payment erroneously made. [8]

It would require language so clear as to leave room for no other reasonable construction in order to induce the belief that Congress intended a statute of limitations to begin to run before the right barred by it has accrued. Obviously, the Government had no right to sue this taxpayer to recover money before money had been paid to him. The construction urged by respondent would allow the statute of limitations to begin to run against recovery on an erroneous payment before any such payment is made. As said by a House Committee in reporting on a statute of limitations contained in a revenue act, [9] “Logically the period of limitation should run from the date of payment, since it is at that time that the right accrues.”

We are of opinion that Congress did not intend the limitations of § 610 to run against the Government until the Government’s right “has accrued in a shape to be effectually enforced.” [10]

This statute does not begin to run against the Government when a claim is erroneously allowed. It begins to run from the date of payment. The judgment below is not in accord with this construction of the statute and is

Reversed.

Me. Justice Cardozo and Mr. Justice Reed took no part in the consideration or decision of this case.
1

Revenue Act of 1928, c. 852, 45 Stat. 791, § 610.

2

91 F. (2d) 547.

3

Wisconsin Central Railroad v. United States, 164 U. S. 190, 212; see United States v. Burchard, 125 U. S. 176, 180, 181.

4

Grand Trunk Western Ry. Co. v. United States, 252 U. S. 112, 121.

5

Compare, United States v. Nashville, C. & St. L. Ry. Co., 118 U. S. 120, 125.

6

Revenue Act of 1932, c. 209, 47 Stat. 169, § 1104.

7

Union Pacific R. Co. v. Hall, 91 U. S. 343, 347.

8

Daube v. United States, 289 U. S. 367, 372.

9

House Report No. 179, 68th Congress, 1st Session, p. 27.

10

Cf., Borer v. Chapman, 119 U. S. 587, 602.