Fehrs v. United States

Plaintiffs have moved for summary judgment in the amount of $20,954.83, together with interest and costs as provided by law, representing federal income taxes and interest paid by them on income received in their taxable year ended December 31, 1966. Plaintiffs assert that their income in that year, which was assessed at ordinary income rates, should instead have been taxed as capital gains. Defendant opposes the plaintiffs’ motion, arguing that the tax assessment was correct as a matter of law but that a trial is necessary to determine the correct earnings and profits of the distributing…