Herald A. O'Neill and G. Evelyn O'neill, His Wife v. Commissioner of Internal Revenue
Opinion
Opinion
Kilkenny, J.
Petitioners, of whom Herald A. O’Neill is herein called the taxpayer, have asked us to review a decision of the Tax Court holding that they are liable for certain income taxes in the years 1951 and 1952, and for an addition to their tax on account of taxpayer’s failure to file a declaration of estimated tax in the year 1952. The points raised by the taxpayers on their petition for review are as follows:
1. Whether taxpayer, as a result of investments in Eagle Timber & Mill Company, a corporation, (herein called Eagle Timber) is entitled to (a) take a deduction in the year 1952 for a claimed loss sustained in that year from a transaction entered into for profit; or (b) in the alternative, a deduction for a business bad debt or loss which became determinable in that year; or (c) in the further alternative, a deduction for a capital loss in 1952.
2. Whether taxpayer is entitled to a deduction in 1951 for an alleged loss incurred in a transaction in which taxpayer was an escrow agent.
3. Whether the Tax Court erred in finding that the taxpayer failed to prove reasonable cause for his failure to file a declaration of estimated tax for the year 1952.