Al T. Young v. Robert A. Riddell, District Director of Internal Revenue

This appeal involves a suit for refund of certain federal excise taxes assessed against a partnership, doing business as the “Riviera Room,” for periods ending in 1952 and 1953. The partnership was formed in February, 1952 and continued to do business as the “Riviera Room” until adjudicated bankrupt on August 6, 1953. By this action appellant seeks refund to the extent said taxes, together with interest and penalties thereon, were assessed against and paid by him individually. Jurisdiction was conferred on the district court by 28 U.S.C. § 1340 and on this court by 28 U.S.C. § 1291 .

The district court affirmed the Commissioner in finding that appellant was a secret or dormant general partner in the Riviera Room in 1952 and 1953, and in holding appellant personally liable for the tax assessments against the partnership. A finding of the district court recites that appellant failed to sustain the burden of proving he was not a secret or dormant partner in the Riviera Room and thereby liable for the partnership taxes, together with interest and penalties.

Appellant contends that the district court erred (1) in finding under the evidence that in fact appellant was a secret or…