Kent v. Rothensies

KIRKPATRICK, District Judge.

This is an action for the recovery of additional income taxes paid for the years 1932, 1933, and 1934, amounting in all, with interest, to $302,958.17. The trial was to the court without a jury, and the evidence consists of a stipulation covering all relevant facts.

The question involved is whether certain income accumulated by the trustees of three identical trusts, established in 1932 by the plaintiff for members of his family, is taxable to the trustees or 'is to be included in the grantor’s income.

*293The statute directly involved is Sec. 167(a) (1) of the Revenue…