Wolf v. Commissioner of Internal Revenue

357 F.2d 483 William F. WOLF, Jr., and Gertrude D. Wolf, Tami Lee Wolf, William F. Wolf, III, Gayl Ann Wolf, Boni L. Wolf and Terry J. Wolf, all minors, by their Guardian, William F. Wolf, Jr., Petitioners, v. COMMISSIONER OF INTERNAL REVENUE, Respondent. Nos. 20340-20345. United States Court of Appeals Ninth Circuit. March 4, 1966. Clyde E. Tritt, Stanton H. Zarrow, Los Angeles, Cal., for petitioner. Richard M. Roberts, Acting Asst. Atty. Gen., Lee A. Jackson, Melva M. Graney, Robert A. Bernstein, Richard Heimann, Dept. of Justice, Washington, D. C., for respondent. 1 Before BARNES and ELY, Circuit Judges, and CROCKER, District Judge. CROCKER, District Judge: 2 Before us is a petition for review of a Tax Court decision holding that the petitioners were deficient in the payment of their income tax for the taxable year 1958 in the amount of $17,246.84. The issue is whether the Tax Court properly held that the assumption of the Partnership's personal liability constituted the payment of a dividend to the partnership, and that the transaction was not within the meaning of Section 351 of the Internal Revenue Code of 1954. 1 3 The facts of this case as are relevant to this appeal are…