Jack Showell v. Commissioner of Internal Revenue

This is the third time this court has had occasion to review decisions of the Tax Court upon the petitioners’ petitions for redetermination of income tax deficiencies for the year 1949. See Showell v. Commissioner, 238 F.2d 148 , Showell v. Commissioner, 254 F.2d 461 . The Commissioner’s determinations showed a deficiency of $3,946.65 for Jack Showell and of $4,065.69 for Dorothy Showell. The decision of the Tax Court, each time, fixed the deficiencies due from these two petitioners at $3,286.65 and $3,392.25.

Upon our first review we expressed dissatisfaction with the Tax Court’s findings, particularly as respects a written Exhibit 3 which the Tax Court had apparently credited in part, and stated: “We have such dissatisfaction with [the findings] that we have determined to send the ease back to the Tax Court to make new findings.” We also held that petitioners’ claim that they should have been allowed to prove their income by “net worth” proof, was not supported by sufficient foundation or offers of proof. The case was remanded for further proceedings.

Upon the second review, which was of the Tax Court’s decision following our first remand, we disposed of the case as follows:…