Parker v. Commissioner

SteRNhagen:

The Commissioner determined a deficiency of $617.30 income tax for 1921, and in doing so held that the petitioner had no right to deduct the premiums on a life insurance policy taken out by the petitioner to protect his creditors and avoid bankruptcy. The facts alleged in the petition are all admitted in the answer and are therefore found as alleged.

During the year 1915, and prior thereto, the taxpayer wag engaged in business as an individual trading as O. S. Knowles.

In 1915, the taxpayer had become so involved financially, bankruptcy proceedings having been filed against him, that…