Commissioner of Internal Revenue v. John Danz Charitable Trust

Before us is a petition to review a decision of the Tax Court of the United States, 1959, 32 T.C. 469 , which ordered and decided that there were no deficiencies in income tax for the taxable years 1948, 1950, 1953 and 1954. The proceedings in the Tax Court were instituted by the respondent to review a determination by the Commissioner of Internal Revenue that respondent had an income tax deficiency of $57,553.88 for the tax years above noted. The Tax Court held that the respondent was organized and operated exclusively for charitable purposes within the meaning of the statute, and that respondent is entitled to exemption from tax during the years in question.

The Tax Court had jurisdiction to review the Commissioner’s determination of income tax deficiencies under Section 7442 of the Internal Revenue Code of 1954, 26 U.S.C. § 7442 . Jurisdiction of this Court to review is conferred by Section 7482 of the Internal Revenue Code of 1954, 26 U.S.C. § 7482 .

This is the second time that the tax exempt status of respondent charitable trust has been involved in litigation in this Court. The first litigation, decided adversely to the trust respondent by the Tax Court, 18 T.C. 454, 1952…