District of Columbia v. Joseph E. Jones and Marjorie B. Jones, T/a Joseph E. Jones Agency

BURGER, Circuit Judge.

The District of Columbia seeks review of a holding of the Tax Court that respondents, Joseph E. and Marjorie B. Jones, husband and wife, and partners in an unincorporated insurance agency, were entitled to a franchise tax refund for the calendar years 1949-1952, and for part of 1953, amoanting to $11,602.-97. For the reasons outlined below, we hold the Tax Court erred in deciding that respondents were exempt from franchise taxation under the clause exempting partnerships in which more than 80% of the gross income is derived from personal services actually rendered by the…