Spies v. United States

SANBORN, Circuit Judge.

This appeal from a judgment dismissing the plaintiffs’ action for refunds of income taxes for the years 1941 and 1943 presents two questions:(1) Whether $6,000 of the net income of a trust, known as the “Bond Trust,” created December 20, 1934, by Jacob A. Spies, who died in 1938, was taxable to his widow, Anna Spies, in each of the years in suit, under § 162(b), Title 26 U.S.C.A., 1 as income “which is to be distributed currently”; the instrument creating the trust providing:

“The entire net income of the trust estate shall be accumulated and shall be retained in a…