Richard Rubin and Helene Rubin v. Commissioner of Internal Revenue

This case was here initially, 429 F.2d 650 (2 Cir. 1970), on an appeal by Richard Rubin from a decision of the Tax Court, 51 T.C. 251 (1968), which had upheld a determination by the Commissioner that all payments by Dorman Mills, Inc. to Park International, Inc., Rubin’s 70%-owned company, in 1960 and 1961 for his management services constituted gross income to Rubin. 1 The facts are sufficiently stated in our previous opinion and need not be recapitulated here. Our ruling was that the Tax Court should not have upheld the Commissioner’s resort to “the broad sweep of § 61” of the Internal…