Herman Knop and Dorothy Owen Knop v. United States

GARDNER, Chief Judge.

Appellants, who are husband and wife, for the taxable year 1948 filed a joint income tax return. In due course, on October 23, 1952, the Director of Internal Revenue made a deficiency assessment in the amount of $9,799.44. This deficiency assessment was bottomed on the fact that Dorothy Owen Knop had during that taxable year sold to her brother, Edward Owen, for $43,500 one hundred forty-five shares of the capital stock of the Paxton & Vierling Iron Works. This deficiency assessment was anticipatorily paid by appellants October 13, 1952, following which they filed claim…