Irving S. Federbush and Sylvia C. Federbush v. Commissioner of Internal Revenue, Sylvia C. Federbush v. Commissioner of Internal Revenue

The determinations of the Tax Court in respect to which petitioners claim error are:

■ (1) Holding the returns for the years 1942 through 1946 and 1948 to be joint returns on which both husband and wife were liable for any deficiency.(2) Holding that funds diverted by petitioner Irving Federbush were not embezzled and were therefore taxable, and that petitioners were properly ruled to be subject to the fraud penalty under Section 293(b) of the Internal Revenue Code of 1939.(3) Holding that the amount of the unreported funds diverted by Irving Federbush was $66,657.40.

Whether the returns were…