Schwartz v. Commissioner
United States Tax Court
Deduction -- Attorney Fees. -- In 1950 petitioner employed attorneys in connection with an examination of his income tax returns for previous years where failure to report all business income and possible fraud was involved. The services of the attorneys were terminated and their fees paid in 1950, which was prior to final determination of additions to tax for fraud and return of an indictment for criminal fraud which resulted in conviction on a plea of nolo contendere.
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Deduction -- Attorney Fees. -- In 1950 petitioner employed attorneys in connection with an examination of his income tax returns for previous years where failure to report all business income and possible fraud was involved. The services of the attorneys were terminated and their fees paid in 1950, which was prior to final determination of additions to tax for fraud and return of an indictment for criminal fraud which resulted in conviction on a plea of nolo contendere. Held, fees deductible in 1950.
1Opinion of the Court
OPINION.
Tietjens, Judge:
The only question is whether petitioner may properly claim a deduction for fees paid in 1950 for legal services in connection with attempts to determine and settle his income tax liabilities for previous years.
In the ordinary case where litigation over income tax liabilities is carried on and attorney fees are contracted for and paid in connection therewith such a deduction would be a proper one. James A. Connelly, 6 T. C. 744. See also David L. Loew, 7 T. C. 363. Indeed, Regulations 111, section 29.23 (a)-15 expressly provides that “Expenses paid or incurred by an…
2Cases cited3 opinions
- Greene Motor Co. v. CommissionerUnited States Tax Court · 1945
- Loew v. CommissionerUnited States Tax Court · 1946
- Connelly v. CommissionerUnited States Tax Court · 1946
3Cited by2 opinions
- Cecil R. Hopkins and Ruth O. Hopkins v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1959
- Schwartz v. CommissionerUnited States Tax Court · 1954