Isi Corporation v. United States

Before KILKENNY and WALLACE, Circuit Judges, and SOLOMON, District Judge.

ISI Corporation appeals from a judgment based upon a jury verdict denying a refund of taxes for the years 1962 through 1965. We affirm.

ISI contends (1) that there was insufficient evidence to substantiate the verdict and (2) that the trial court erred in denying its motion to compel answers to certain questions asked in a pretrial discovery deposition. We are satisfied that there was substantial evidence upon which the jury could render a verdict for the government. Our concern is with the discovery order.

Internal Revenue agent Barron, who was assigned to audit the ISI tax returns, conducted a lengthy investigation which resulted in a deficiency notice being issued to ISI more than eight years after ISI had filed its tax return reporting the transaction in issue. During a pretrial deposition, Barron, upon the advice of the attorney representing the government, refused to answer certain questions. ISI moved to have the court compel answers and contends that the refusal of the district court to do so, other than on two questions, prejudiced it in preparation for trial and resulted in reversible…