Commissioner of Internal Revenue v. Fleming

McCORD, Circuit Judge.

This is an appeal from a decision of the Tax Court denying a claim by the Commissioner of a deficiency in the gift tax of William Fleming for the year 1938. After the original case had been submitted and briefs filed, the Commissioner amended ,his answer and raised for the first time the question of the liability of respondent for taxes on certain funds used to purchase insurance on the life of his wife wherein his daughter was named beneficiary.

The facts as found by the Tax Court are these: Pursuant to negotiations carried «on by taxpayer and applications therefor made…