Margaret Lillian Ferguson, Newton Ivan Sherry and Lois Sherry v. Commissioner of Internal Revenue

Separate petitions for redetermination of deficiencies in income tax were filed with the Tax Court by Margaret Lillian Ferguson, and Newton Ivan Sherry and Lois Sherry, his wife. Lois Sherry is involved because she filed joint returns with her husband, Newton Ivan Sherry. The two petitions were consolidated for trial before the Tax Court as there was but a single issue common to both petitions involving identical years.

The Tax Court found and concluded under the entire record before it that the petitioner, Newton Ivan Sherry, the son of Nathan Sherry, deceased, and petitioner, Margaret Lillian Ferguson, daughter of said decedent, were, together with their father Nathan Sherry, partners of Sherry Enterprises, a family partnership, during the taxable years 1945 and 1946. The deficiencies here in issue were assessed against the petitioners Newton Ivan Sherry and his wife, and Margaret Lillian Ferguson, for their respective calendar years 1945 and 1946. The additional income, so assessed, represents each partner’s additional distributive share of income of Sherry Enterprises, the partnership, for its fiscal years ended June 30, 1945 and June 30, 1946. The amounts of such additional…