Giffen

The Commissioner of Internal Revenue made a deficiency assessment against Russell Giffen and Ruth P. Giffen, respectively, upon tax returns filed by each individually, for the calendar years 1942, 1943 and 1944. These returns reflected a showing of a partnership, “Russell Giffen and Company,” consisting of Russell Giffen, Ruth P. Giffen and their four children, Patricia Giffen, born June 27, 1925, Michael Giffen, born March 23, 1926, Carolyn Giffen, born November 13, 1927, and Price Giffen, born October 24, 1928. They were based upon the agricultural year ending October 14. The taxpayers filed petitions for redetermi-nation. The Tax Court held that “purported gifts by Russell and Ruth Giffen to their four children were not complete and absolute but were made on condition that the property remain in the farm business and under the absolute management of petitioner Russell Giffen in respect of both capital and income therefrom.”

The Court also found that “petitioners did not really and truly intend to join together with their four children in the conduct of the business of Russell Giffen and Company as a bona fide partnership at any time from October 15, 1941, through March 31,…