Schlobohm

The above entitled cause .heretofore tried, argued and submitted, is now decided as follows:

*594 Judgment will be for the defendant, that the plaintiff take nothing by his complaint. Costs to the defendant.

Findings and judgment to be prepared by Counsel for the defendant under local rule 7.

Comment

The plaintiff seeks to recover income tax payments allegedly overpaid for the taxable years 1945 and 1946. Timely application for refund has been made.

The whole question involved is whether the Commissioner was right in disregarding the partnership existing between the plaintiff and his wife and their two children. The business carried on by the plaintiff was that of wholesale jobbing and manufacturing, a business dealing with what is known in the trade as “narrow fabrics”.

On July 15, 1941, the plaintiff and his wife executed a partnership agreement. On August 1, 1942, the partnership was enlarged by including the two minor children of the parties, Jon H. Schlobohm, aged four years, and Roy O. Schlobohm, aged one year. On March 11, 1943, a petition was filed with the Superior Court of the State of California in and for the County of Los Angeles, for the appointment of the…