Jones v. Standard Sales, Inc.

In 1931, H. D. Severson, as a sole trader, commenced a wholesale business called the Standard Sales Company. The business grew to the extent that his income tax for 1946 was $42,187.25. He received six hundred fifty dollars in salary from another source during 1946, but otherwise, this tax was attributable exclusively to taxable income derived from the Standard Sales Company. December 30, 1946, $40,390.75 of this tax remained unpaid.

He divorced his wife in 1941, and by the property settlement became obligated to pay her two hundred dollars a month in return for a release of her community…