Commissioner of Internal Revenue v. Heide

L. HAND, Circuit Judge.

The Commissioner appeals from an order of the Tax Court — reviewed by the court en banc — expunging a deficiency in income tax, assessed against Heide, the taxpayer, for the year, 1943. The question is whether the amendment of 1942 to § 23(a) (2) of the Internal Revenue Act, 1 permits the deduction of a sum of money, paid by the taxpayer in 1942 under the following facts which were stipulated. Heide was one of rour trustees in each of four trusts, created by his father: one for each of his four sisters. The trusts were set up in 1914 and until 1938 the trustees had…