Leighton v. United States

SAWTELLE, Circuit Judge.

This is an appeal from a decree rendered by the District Court in favor of the United States against the appellants. The appeal is heard upon the judgment roll.

Leighton & Co., Incorporated, was a California corporation engaged in business in San Francisco during the years 1918, 1919, and 1920, for which years it filed federal income and profits tax returns. The corporation claimed the right to be taxed as a “personal service corporation” under certain sections of the Revenue Act of 1918 (40 Stat. 1057).

On February 21, 1921, the corporation disposed of its business and…