Smith v. Higgins

CHASE, Circuit Judge.

The plaintiff filed his income tax return for 1932 with the Collector of Internal Revenue for the Third District of New York and therein claimed a deduction for a loss sustained on the sale of securities to Innisfail Corporation on December 29, 1932. Pie also claimed a deduction for a loss sustained on the sale of certain securities to his wife on the same date. Both deductions were disallowed; a deficiency in income taxes for 1932, based on the dis-allowances, was determined; and a fraud penalty was assessed. The plaintiff paid the amount of the deficiency, penalty and…