McGlue v. Commissioner
United States Board of Tax Appeals
1. PLEADINGS - FAILURE TO REPLY. - The Commissioner proceeded under Rule 18 to have the allegations of his answer deemed to be admitted because no reply was filed. Those allegations justify the imposition of the fraud penalty. 2. INCOME - FEES. - Amounts paid to the petitioner as fees for legal services which he was free to enjoy and use as he saw fit, were a part of his gross income.
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1. PLEADINGS - FAILURE TO REPLY. - The Commissioner proceeded under Rule 18 to have the allegations of his answer deemed to be admitted because no reply was filed. Those allegations justify the imposition of the fraud penalty. 2. INCOME - FEES. - Amounts paid to the petitioner as fees for legal services which he was free to enjoy and use as he saw fit, were a part of his gross income. His one-half of a fee was properly included in his income regardles of whether or not it was paid over to him by his associate during the taxable year. 3. DEDUCTIONS. - Amounts paid allegedly for the purpose of…
1Opinion of the Court
*766OPINION.
Murdock:
The Commissioner filed his answer in this proceeding on March 28, 1940, and in that answer, in paragraphs 8 and 9, made various allegations of fact to support his contention that a part of the deficiency for 1935 is due to fraud with intent to evade tax. No reply was filed on behalf of the petitioner within the time prescribed by the rules of the Board. On May 27, 1940, the Commissioner moved, under Bule 18 of the Board’s Buies of Practice, that the allegations of the answer contained in paragraphs 8 and 9 be deemed to be admitted. The petitioner was ordered to show cause, if…
2Cited by11 opinions
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- Downer v. CommissionerUnited States Tax Court · 1945
- Gay v. CommissionerUnited States Tax Court · 1966
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