Sherman v. Commissioner of Internal Revenue

MARTIN, Circuit Judge-

These three cases involving identical issues, were consolidated for hearing in the United States Tax Court and also in this court on review, sought by the petitioning taxpayers. To avoid unnecessary restatement, we have set forth in a footnote the Tax Court’s complete findings of fact, which have been accepted both by the petitioners and by the respondent Commissioner of Internal Revenue. 1 The deficiencies determined by the Commission er of Internal Revenue and upheld by the Tax Court were in income taxes for 1939.

Two questions of law are presented: (1) Was the trust…