Childers

This is a petition to review simultaneous decisions of the United States Board of Tax Appeals entered January 11, 1934, and involves the federal income tax liability of the petitioner, formerly a resident of El Centro, Cal., and now residing in Los Angeles, Cal.

The petitioner claims that the respondent has erroneously included in the petitioner’s taxable income the amounts of $11,-588.23 and $10,055 for tile years 1927 and 1928, respectively, representing compensa *28 tion received by the petitioner" “for services as an officer or employee” of the Imperial Irrigation District of the state of California. The taxpayer contends that the irrigation district is a public agency of the state, exercising “essential Governmental Functions,” and that he devoted “practically all of his business hours to the business of said District.” .

It is the petitioner’s contention that the amounts received by him from the district are not subject to federal income taxes under the general principle of law that the federal government cannot tax the means and instrumentalities of the states. He also invokes the revenue laws of the United States and Treasury Regulations issued pursuant thereto.

The…