Perkins v. Lightfoot

In the fall of 1923 the plaintiff, W. C. Lightfoot, and the defendant, Frank Perkins, formed a partnership for the purpose of dealing in cotton. At the end of the season the partnership was dissolved, and Perkins made an income tax report of the partnership affairs. The report showed a profit of $1,414.48. This was divided between the partners. In April, 1927, a revenue agent called on Perkins for a recheck of the partnership account, and demanded a tax on income not evidenced in said report. Upon a recheck, the agent demanded payment of taxes on income of approximately $17,000. To this the…