Fairbanks

Petitioner was married to Frederick C. Fairbanks. On November 26, 1938, she was granted a divorce, and has not remarried. Fairbanks died May 22, 1940, and his will was probated in Indiana. Before the divorce, an agreement was entered into settling property rights, whereby petitioner was to be paid monthly payments of $1250, secured by certain stock in a newspaper company. The District Court of Nevada, in the decree of divorce, approved the settlement agreement, but reserved jurisdiction to increase or decrease the amount of the monthly payments provided for by the agreement.

Subsequently, Fairbanks put into trust his property, including the shares of stock above mentioned, 'burdened with the obligation to petitioner. After Fairbanks’ death, petitioner filed a claim against the estate. Another agreement was entered into between the executors and the petitioner, whereby a method of determining the amounts of the monthly payments was settled.

Petitioner received from this source $13,500.00 in 1942 and $14,813.13 in 1943, which she did not include in her returns. The Commissioner held the amounts taxable. The Tax 'Court, upon review, held against petitioner.

It is claimed these…