Ruth Sterns v. Commissioner of Internal Revenue, Cy Sterns v. Commissioner of Internal Revenue

These petitions for review involve Federal income taxes for the taxable years 1943 and 1944, payable by the petitioners, who were husband and wife. Cy Sterns died on November 1, 1955, after the transcript of record in the instant case had been filed in this Court.

Cy Sterns filed his return for 1943 showing an income and victory tax liability of $2,372.23. For 1944 his return showed no income and victory tax liability, but showed a loss of $4,124.27.

The return of Ruth Sterns for 1943 disclosed an income and victory tax due amounting to $196.48, of which $52.79 was paid as an estimated tax, leaving a net due of $143.69. For 1944 her return showed no tax due from her. Neither the Commissioner’s “Statement” nor the petitioner’s brief is entirely accurate in its figure regarding her 1943 tax liability.

The Commissioner of Internal Revenue determined against Mrs. Sterns a deficiency of $51,923.66 for 1943, plus a 50% penalty for fraud, under section 293 (b) of the Internal Revenue Code, 26 U. S.C.A.; and a deficiency of $18,970.12, with a 50% penalty, for 1944.

As to the taxes of Cy Sterns, the Commissioner determined a deficiency of $49,747.91, plus 50%, for 1943, and a…