Warrick v. Commissioner of Internal Revenue

GARDNER, Chief Judge.

This matter is before us on petition for review of a decision of the Tax Court assessing a deficiency in the taxpayers’ income for the year 1940. The basis for the deficiency is the inclusion' of an attorney fee of $125,000 paid to petitioner Dupuy G. Warrick in a lump sum on December 23, 1940. Petitioners are husband and wife and filed .a joint income tax return. The income involved was that of Mr. Warrick and we shall refer to him as taxpayer or Warrick.

The question involved is whether in computing taxpayers’ income for that year, petitioners are entitled to the benefit…