Rhombar Co., Inc. v. Commissioner of Internal Revenue

IRVING R. KAUFMAN, Circuit Judge:

This petition to review a decision of the Tax Court, Atkins, J., reported at 47 T.C. 75 (1967), holding Rhombar Co., Inc. liable for the accumulated earnings tax imposed by Section 531 of the Internal Revenue Code of 1954 for the taxable years ending January 31, 1960, 1961, and 1962, 1 presents what may be the first instance in which a taxpayer’s counsel has had the “abnormally strong nervous system” 2 necessary to risk his entire accumulated earnings tax case on the burden of proof issue under § 534. The Tax Court held that Rhombar had the burden of proving…