Harry L. Sparks and Rex Wanda Sparks v. Commissioner of Internal Revenue

SCHNACKENBERG, Circuit Judge.

This is an appeal from a decision of the tax court of the United States determining deficiencies in petitioners’ income tax liability for the calendar years 1948 and 1949. They are husband and wife. 1 Their son, Joe C. Sparks, was born February 19, 1938. The relevant income came from a business of buying and selling hogs. In said- calendar years, 15% was allocated by taxpayer to Joe as an alleged partner in a firm known as H. L. Sparks & Company. 2 The Commissioner disallowed that allocation and included that amount in taxpayer’s income.

Based upon the stipulations…