Condor Merritt v. United States

RIVES, Circuit Judge.

This is an appeal from a judgment of conviction for income tax evasion in violation of Section 145(b), I.R.C.1939. The defendant, an uneducated but successful businessman, was indicted and tried on two counts covering the years 1947 and 1948. During that time he had employed a tax consultant who kept his books and records and prepared his tax returns. The Government’s proof was based upon the net worth method. Its net worth schedule showed a computed net income of $25,634.63 compared to a reported income of $8,928.88 in 1947, and a computed net income of $25,991.65…