Irmgard Santos v. Commissioner of Internal Revenue

The Commissioner made a jeopardy assessment against Irmgard Santos on October 15, 1952, on the ground that she was transferee of the assets of her husband, Lawrence Santos, on account of income taxes owed by him for previous years. A considerable sum of interest was also assessed on the transferee liability. The amount of the individual income tax overpayment of Irmgard Santos had previously been determined pursuant to stipulation in the Tax Court for the years 1945 and 1946. The overpayments of income tax for these years were applied by the officials against the assessed transferee liability by two credits upon the books of the District Director, which represented the amounts of the overpay-ments for the two years and which, plus a minor cash payment, equalled the amount of the jeopardy assessment.

After the jeopardy assessment, Irm-gard Santos petitioned the Tax Court for a redetermination of the deficiency. The Tax Court held that the determination of the Commissioner was correct. Upon review, the Court of Appeals held that the Commissioner had not sustained the burden incumbent upon him of proving that Irmgard Santos had received certain assets as a transferee of individual…