Union Stock Farms v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. Nathan Miller

This is a petition for review of ten Tax Court decisions, consolidated for hearing by order of this Court. There were twenty-three separate proceedings below which were consolidated and heard as one. Only these ten — six by the taxpayers and four by the government — are appealed. The government’s appeal is a protective one, asking an alternative treatment of certain sums of money if the taxpayers succeed on the points they raise. All jurisdictional requisites appearing to have been complied with, this Court has jurisdiction by virtue of §§ 7482-7483 of Int.Rev.Code of 1954, 26 U.S.C. §§ 7482-7483 .

Originally the Commissioner determined, in each of these cases, deficiencies and fraud penalties against the taxpayers. The Tax Court substantially agreed with the Commissioner on the deficiencies, but held that since there was some question, and considerable conflict of the evidence, the fraud penalties were improper. Neither party questions this latter holding.

We adopt, as more accurate and less argumentative, the statement of facts summarized in the Government’s Brief, omitting certain facts concerning matters from which no appeal is taken, and adding some clarifying…