Doty v. Commissioner of Internal Revenue

MAHONEY, Circuit Judge.

This is a petition for review of a decision of the Tax Court sustaining the Commissioner’s determination of a deficiency-in the petitioner’s income tax for the year 1940. The question presented is whether ordinary dividends' on stock held in trust are income which under the trust instrument was currently distributable and thus taxable to the beneficiary under § 162(b) of the Internal Revenue code, 1 or whether the dividends are “accretions to the trust property” which the trustee had discretion to treát as principal or income, and. thus taxable to the trust under § 161…