Welch

This is an action to compel refund of $4,147.93, representing federal income taxe? computed at the prevailing corporate rate for the calendar year 1928. The amount sued for was paid under protest fey plaintiff, Security First National Bank of Los Angeles, as trustee, to the defendant collector. The sole question for decision is whether "the project or enterprise denominated Trust No. 5833, as it is disclosed by the evidence, is an association within the purview of section 701 (a) (2) of the Revenue Act of 1928, 26 US CA § 2701 (a) (2). The pertinent part of that section reads: “The term ‘corporation” includes associations, joint-stock companies, and insurance companies.” The defendant collector demanded and collected the tax from plaintiffs upon the ground that it was an association as described in the Revenue Act aforesaid. The plaintiffs contend that such ruling was erroneous and illegal, and that the enterprise under consideration is shown by the evidence herein not to be an association within the aforesaid section, but that it is to be considered solely as a fiduciary for income tax purposes. It is admitted that, if the enterprise is properly classified as an “association,”…