McKnight v. Commissioner

SANBORN, Circuit Judge.

The question presented by this petition for review is whether the income from a short term trust created by the petitioner in 1934 for the benefit of his wife, was taxable to him under Section 22(a) 1 of the Revenue Acts of 1934, 48 Stat. 686, and 1936, 49 Stat. 1657, 26 U.S.C.A. Int.Rev.Acts, pages 669 and 825. In the belief that the trust income was taxable to the beneficiary, the petitioner did not include it in his federal income tax returns for the years 1935, 1936 and 1937. In 1939, the respondent decided that the trust income was taxable to the petitioner, and…