Angus McDonald v. United States

O’SULLIVAN, Circuit Judge.

Angus McDonald, plaintiff-appellant, appeals from a District Court judgment dismissing his action to recover a federal excise tax paid by him. The tax was a 20% levy on a $1,000.00 bond purchased by him in 1947 from the Idle Hour Country Club of Lexington, Kentucky. The government claimed that the amount paid for the bond was “an initiation fee” *797subject to the tax assessed by virtue of § 1710(a) (2) and § 1712(b) of the Internal Revenue Code of 1939.1

McDonald purchased the bond in 1947; the Commissioner assessed the tax in 1960. McDonald denies liability for the tax…