Drawoh, Inc. v. Commissioner
United States Board of Tax Appeals
1. FRAUD PENALTIES - BURDEN OF PROOF. - In any proceeding involving the issue whether the petitioner has been guilty of fraud with intent to evade the tax, the burden of proof is placed upon the Commissioner by section 907(a) of the Revenue Act of 1924, as amended by section 601 of the Revenue Act of 1928, and must be sustained by a preponderance of the evidence, and this evidence must be clear and convincing.
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1. FRAUD PENALTIES - BURDEN OF PROOF. - In any proceeding involving the issue whether the petitioner has been guilty of fraud with intent to evade the tax, the burden of proof is placed upon the Commissioner by section 907(a) of the Revenue Act of 1924, as amended by section 601 of the Revenue Act of 1928, and must be sustained by a preponderance of the evidence, and this evidence must be clear and convincing. In these proceedings the Commissioner has not sustained the burden of proof and fraud penalties are denied. 2. DEDUCTIONS - SO-CALLED SALARIES AND BONUSES HELD NOT TO BE SUCH AND…
1Opinion of the Court
*678OPINION.
Black:
The issues raised by the pleadings may be summarized as follows:(1) The Commissioner erred in imposing the fraud penalties.(2) The Commissioner erred in disallowing certain deductions taken by petitioners in 1926 and 1927, representing amounts which petitioners had paid certain of their officers and employees as alleged salaries and bonuses, said payments being alleged as reasonable compensation for services actually rendered.(8) The Commissioner erred in adjusting and prorating certain expenses among the several petitioners in accordance with alleged agreements filed with the…
2Cases cited14 opinions
- United States v. IshamSupreme Court of the United States · 1873
- Gano v. CommissionerUnited States Board of Tax Appeals · 1930
- L. Schepp Co. v. CommissionerUnited States Board of Tax Appeals · 1932
- Cornell Steamboat Company v. John J. Coughlin and J. C. Davis, Director General of Railroads, EtcSupreme Court of the United States · 1927
- Bullen v. State of WisconsinSupreme Court of the United States · 1918
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3Cited by11 opinions
- Koufman v. CommissionerUnited States Tax Court · 1977
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- Koch v. CommissionerUnited States Board of Tax Appeals · 1933
- Rhodes-Jennings Furniture Co. v. CommissionerUnited States Tax Court · 1950
- Autocar Co. v. CommissionerUnited States Board of Tax Appeals · 1934
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