United States v. Arthur R. Kintner and Alyce Kintner

This is an appeal from the Judgment of the District Court of Montana, 107 F.Supp. 976 , in favor of the appellees, who were the plaintiffs below, in an action to recover amounts paid as deficiency assessments on their income tax for the year 1948. The amount involved is rather small, — $780.13 plus interest. But the questions involved are of great importance. The plaintiffs are husband and wife, the wife being made a party because joint returns were filed. We shall refer to the husband as “the taxpayer”.

The taxpayer is a doctor of medicine practicing his profession in Missoula, Montana. For many years prior to June 30, 1948, he was a member of a co-partnership which practiced medicine under the firm name of Western Montana Clinic. On that day the partners dissolved the partnership and executed “Articles of Association” whereby they sought to become members of an unincorporated association to be known as the “Association” for the practice of medicine under the prior name. The assets and liabilities of the partnership were taken over by the Association which continued to carry on its activities. All but two of the employees of the partnership became employees of the…