SULLIVAN v. COMMISSIONER OF INTERNAL REVENUE

Nos. 11841, 11842.

241 F.2d 46 (1957)

Neil SULLIVAN and Grace Sullivan, Petitioners, v. COMMISSIONER OF INTERNAL REVENUE, Respondent. James ROSS and Ann Ross, Petitioners, v. COMMISSIONER OF INTERNAL REVENUE, Respondent.

United States Court of Appeals Seventh Circuit.

February 13, 1957.


Attorney(s) appearing for the Case

Eugene Bernstein, E. J. Blair, Chicago, Ill., for petitioners.

Charles K. Rice, Asst. Atty. Gen., Hilbert P. Zarky, Atty., Tax Division, U. S. Dept. of Justice, Washington, D. C., Lee A. Jackson, Elmer J. Kelsey, Attys., Dept. of Justice, Washington, D. C., for respondent.

Before LINDLEY, SWAIM and SCHNACKENBERG, Circuit Judges.


SCHNACKENBERG, Circuit Judge.

Petitioners seek a review1 of that part of decisions entered by the Tax Court of the United States which determined deficiencies in their income taxes for the years 1948, 1949, and 1950, and imposed penalties therefor. The only contested issue in the cases is whether or not petitioners may deduct for income tax purposes unlawful payments of wages and rent in connection with the unlawful operation in Illinois...

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