A. J. Kahn v. United States

This is an appeal from a judgment of the lower court finding appellant Kahn guilty on four counts of a five count Information. Jury trial was waived by appellant and the case tried before the District Court.

Count One charged appellant with violation of the statutory requirement (Section 3290 of the Internal Revenue Code of 1938, 26 U.S.C.A. § 3290 ) that a person who is engaged in the business of accepting wagers shall pay a special (occupational) tax of $50 per year. For this violation he was sentenced to pay a fine of $10,000.

The court found appellant not guilty on Count Three of the Information.

The remaining counts, Two, Four and Five, charged him with failure to pay an excise tax of 10% on the amount of wagers under Section 3285 of the 1939 Code for the months of September, 1953, December, 1953, and March, 1954. This tax is imposed on the amount of wagers accepted by persons who are engaged in the business of accepting wcugers. He was committed to the custody of the Attorney General for a period of one year on each of Counts 2, 4, and 5, these periods of custody to run concurrently, and execution was suspended. Probation, under such “custody,” was granted for a period of…