Rev. Rul. 72-42

The purpose of this Revenue Ruling is to update and restate under the current statute and regulations, the position set forth in I.T. 3483, C.B. 1941-1, 397.

The question presented is whether a claim for refund filed on February 29, 1968, for a federal income tax deficiency paid on February 28, 1966 for the taxable year 1963 is filed within the 2-year period of limitation prescribed by section 6511(a) of the Internal Revenue Code of 1954. Since the year 1968 was a leap year, the issue is whether the extra day, February 29, 1968, should be regarded as within 2 years from the time the tax was paid.

Section 6511(a) of the Code provides that a claim for refund of an overpayment of income tax in respect of which tax the taxpayer is required to file a return shall be filed by the taxpayer within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever of such periods expires the later.

The United States Supreme Court held in Burnet v. Willingham Loan & Trust Co., 282 U.S. 437 (1931), Ct. D. 292, C.B. X-1, 258 (1931), that the day on which the event happens should be excluded when computing periods of limitation.

The term "year", when used to designate a statutory period of limitation, means "calendar year" unless some other meaning is clearly indicated. "Calendar year" in turn means a 12-month period regardless of whether it contains 365 or 366 days. The intervention of February 29 during a leap year has been held not to change the day of the month for expiration of a period of limitation defined in terms of years. People v. Hill, 2 Cal. App. 2d 141 (1934), 37 P. 2d 849; Ex parte Johnson, 53 Ariz. 161 (1939), 87 P. 2d 107; Douglas v. Acacia Mutual Life Insurance Co., Tex. Civ. App. (1938), 118 S. W. 2d 643.

The 2-year period of limitation here involved did not begin to run until March 1, 1966 and, thus, did not expire until after the last day of February 1968.

Accordingly, it is held that the claim was filed within the 2-year period of limitation prescribed by section 6511(a) of the Code, since it was filed on February 29, 1968.

I.T. 383 is hereby superseded, since the position therein is restated under the current law in this Revenue Ruling.

¹ Prepared pursuant to Rev. Proc. 67-6, C.B. 1967-1, 576.