Gene O. Clark and Faye Clark v. Commissioner of Internal Revenue

Before us is a petition for review of a decision of the Tax Court involving asserted deficiencies in income tax against the petitioners for the years 1946 and 1947. The jurisdictional requisites appearing to have been complied with, this Court has jurisdiction by virtue of Section 7482(a) of the Internal Revenue Code of 1954, 26 U.S.C.A. § 7482 (a), (Section 1141(a) of the Internal Revenue Code of 1939 as amended 26 U.S. C.A. § 1141(a)).

The Commissioner of Internal Revenue asserted certain deficiencies and fraud penalties against the petitioner Gene Clark for the calendar years 1946 and 1947, and deficiencies against his wife Faye Clark for the calendar year 1947. These deficiencies and penalties were redetermined by the Tax Court, and from this decision the parties have petitioned for review.

The facts as stipulated and found by the Tax Court appear essentially as follows: During the calendar years 1946 and 1947 the petitioners, Gene and Faye Clark, sometimes hereinafter referred to as Gene and Faye, resided in Los Angeles County, California, and all income derived by them during those years was community income. For the calendar years 1946 and 1947 they filed separate income…