Roy C. Whayne v. Seldon R. Glenn, Collector of Internal Revenue for Kentucky

This is an income tax case arising out of a family partnership. Appellant sued the Collector of Internal Revenue for a refund of the additional income tax which he was required to pay as a result of the Commissioner’s refusal to recognize the status of appellant’s wife as a partner in the firm. The district court upheld the action of the Commissioner, and appeal is taken from the judgment entered.

Appellant and his brother had operated as partners since 1915. In 1940, appellant transferred to his wife a 15% interest in the partnership, and, under a stipulation, it is conceded that the new…