Commissioner of Internal Revenue v. Jergens

FOSTER, Circuit Judge.

The Commissioner determined deficiencies in the payment of income taxes by Amy B. Jergens, now by divorce in 1940 and subsequent remarriage Amy B. Gallup, for the calendar years 1936, 1937 and 1938. For reasons stated in an unpublished opinion, the Board reversed the Commissioner and held there were no deficiencies. The material facts shown by the record are these.

On December 31, 1934, the taxpayer created a trust for her lifetime, with her then husband, Andrew Jergens, and the First National Bank of Cincinnati as trustees. She transferred to the trust two insurance…