R. C. Granquist, District Director of Internal Revenue v. Squire Earl Harvey

Appellee Harvey sued the appellant Director to recover sums which he asserted were wrongfully assessed and collected from him as additional income taxes, penalties and interest for the calendar years 1941 through 1947. The Commissioner’s assessment was made February 5, 1954. It was based upon his finding of Harvey’s net worth during the period involved here. Included were penalties assessed for fraud. That there were deficiencies for the years in question was conceded, but the case turns upon the question whether there was proof that some part of the deficiencies for the years 1941 through 1944 were due to fraud with intent to evade tax, within the meaning of See. 293(b) of the Internal Revenue Code, 1939, 26 U.S.C.A. § 293 (b), so that assessment might be made “at any time”, as provided in Sec. 276 of the same Code, 26 U.S.C.A. § 276 .

Upon trial in the court below the jury returned a special verdict for the defendant Director, finding that in each of these years Harvey filed a false or fraudulent return with intent to evade tax. Harvey moved to set aside the verdict (he had moved for a directed verdict at the close of the evidence) and for judgment in accordance with his…