Commissioner of Internal Revenue v. New York Trust Co.

MANTON, Circuit Judge.

The New York Trust Company became trustee for Conrad Henry Matthiessen, who, by irrevocable indenture dated December 24, 1921, conveyed to it 6,000 shares of common stock of the Com Products Refining Company, which cost him, on April 27, 1906, $141,375. At the date of transfer, the stock was valued at $557,500. During the year 1922, the trustee sold the 6,000 shares for $603,385. On March ’15, 1923, the trustee filed an ineome tax return for the year 1922 for the trust, reporting a profit of $87,385. The beneficiary filed no tax return for 1922. He was then a minor, and…