George E. Conner and Dorothy P. Conner v. United States

COLEMAN, Circuit Judge:

The Internal Revenue Service determined that George and Dorothy Conner, plaintiff-taxpayer-appellees, had understated their income taxes for the years 1965 and 1966 in the sum of $22,359.04. They paid the amount demanded, unsuccessfully claimed a refund from the Internal Revenue Service, successfully filed this suit, and the Government appeals. The judgment of the District Court 303 F.Supp. 1187, will be affirmed in part and reversed in part and the case remanded for a recalculation of the amount due the taxpayers.

There are two important issues in the appeal.

The first…