MacCrowe's Estate v. Commissioner of Internal Rev., 7216.

Decision Date17 July 1956
Docket NumberNo. 7216.,7216.
Citation240 F.2d 841
PartiesESTATE of Albert E. MacCROWE, Deceased, James C. L. Anderson, Administrator de bonis non, with the will annexed, and Hazel B. MacCrowe (now Hazel B. Keen), Surviving Wife, Petitioners, v. COMMISSIONER OF INTERNAL REVENUE, Respondent.
CourtU.S. Court of Appeals — Fourth Circuit

D. Sylvan Friedman, Baltimore, Md., for petitioners.

Dumond P. Hill, Atty., Dept. of Justice, Washington, D. C. (Charles K. Rice, Asst. Atty. Gen., Lee A. Jackson and Hilbert P. Zarky, Attys., Dept. of Justice, Washington, D. C., on brief), for respondent.

Before PARKER, Chief Judge, SOPER, Circuit Judge, and TIMMERMAN, District Judge.


This is an appeal from a decision of the Tax Court, adjudging deficiencies in income tax and penalties for the years 1948 and 1949. The taxpayer, a physician now deceased, was engaged in performing illegal abortions. He kept no records of his income and the Commissioner charged him with unreported income of $142,000 for 1948 and $72,000 for 1949. The Commissioner arrived at these figures by estimating the number of patients operated on by the physician on the basis of morphine tablets purchased by him and multiplying this by a charge of $400 per patient. The Tax Court found that the Commissioner's determination was incorrect; but, while finding generally that taxpayer's gross income was $115,000 for 1948 and $55,000 for 1949, did not find the facts upon which this ultimate finding as to gross income was based.

A question was raised as to deductions, and the Tax Court correctly held that taxpayer was not entitled to claim as a deduction attorneys' fees in the sum of $5,000 but made no findings with respect to other deductions, some of which may have been properly allowable under the rule as laid down in Commissioner of Internal Revenue v. Doyle, 7 Cir., 231 F.2d 635.

As said by this court in Timmons v. Commissioner, 4 Cir., 198 F.2d 142, 143:

"The court should have found the facts upon which the reconstruction was based so that we could judge whether or not it was properly made. It is well settled that `there must be findings, stated either in the court\'s opinion or separately, which are sufficient to indicate the factual basis for the ultimate conclusion.\' * * * We agree, of course, that in making the reconstruction, absolute accuracy of detail is not essential and that it is proper to estimate income on the basis of facts which indicate its

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11 cases
  • Acker v. Commissioner of Internal Revenue
    • United States
    • U.S. Court of Appeals — Sixth Circuit
    • September 3, 1958
    ...of Albert E. MacCrowe, 14 CCH Tax Ct. Memo. 958 (1955), affirmed, on this point and reversed on other grounds, MacCrowe's Estate v. C. I. R., 4 Cir., 1956, 240 F.2d 841; see: Tank Truck Rentals, Inc., v. Commissioner, 1958, 356 U.S. 30, 78 S.Ct. 507, 2 L.Ed. 2d 562; Hoover Motor Express Co.......
  • Schultz v. CIR, 17914.
    • United States
    • U.S. Court of Appeals — Fifth Circuit
    • May 30, 1960
    ...cases urged pro and con1 should be added MacCrowe's Estate v. Commissioner, 4 Cir., 1959, 264 F.2d 621; 4 Cir., 1958, 252 F.2d 293; 1956, 240 F.2d 841, in which the Fourth Circuit, after three appeals, expressly directed a complete II. On the question of the use of the net worth method, we ......
  • U.S. v. Leon
    • United States
    • U.S. Court of Appeals — Third Circuit
    • July 12, 1984
  • United States v. Caraballo-Rodriguez
    • United States
    • U.S. Court of Appeals — Third Circuit
    • August 8, 2013
    ... ... (internal quotation marks omitted)). Pursuant to that ... L.Rev. 497, 519 (2009). 2. In this case, the ... ...
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