United States v. Ison

• Decision Date: 30 April 1946
• Citation: 67 F. Supp. 40
• Parties: UNITED STATES v. ISON et al.
• Court: U.S. District Court — Southern District of New York

67 F. Supp. 40

UNITED STATES v.ISON et al.

District Court, S. D. New York.

April 30, 1946.

John F. X. McGohey, U. S. Atty., of New York City(Henry L. Glenn, Asst. U. S. Atty., of New York City, of counsel), for plaintiff.

Herman C. Stoute, of New York City, for Joseph M. Ison and Eloise Ison.

Tanner, Sillcocks & Friend, of New York City(R. H. Long, of New York City, of counsel), for Metropolitan Life Ins. Co. HULBERT, District Judge.

The Court: This action, arises under Section 3678,26 U.S.C.A. Int.Rev.Code, § 3678, of the Internal Revenue Code and was brought under the direction of the Attorney General of the United States at the request of the Commissioner of Internal Revenue, Treasury Department of the United States, came on for trial before me.After hearing the parties and proofs offered by them respectively, the Court makes the following findings of fact:

That at all times mentioned in the complaint the plaintiff was and now is a corporation sovereign and body politic.The last known address of the defendant is 1384 Pacific Street, Borough of Brooklyn.He testified that he formerly lived at 2111 Mathews Avenue in the Borough of the Bronx.

On June 15, 1935, Joseph M. Ison filed his Federal income tax return for the calendar year 1934.

On May 3, 1937, the Commissioner made a jeopardy assessment of additional income taxes of Joseph M. Ison for the year 1934 in the sum of $187,126.82, a fraud penalty of $93,563.41, and computed interest thereon of $23,944.54 to May 1937, making a total of $304,634.77.

On or before May 5, 1937, one Joseph T. Higgins was appointed and qualified and was acting as Collector of Internal Revenue of the plaintiff in and for the Third Collection District of New York.

On or about May 5, 1937, said Joseph T. Higgins as Collector received an assessment list of the assessment alleged in paragraph 5 of the complaint, and on May 5, 1937he gave notice to Joseph M. Ison and demanded payment of the amount of the said assessment amounting to $304,634.77.

The defendantEloise Ison, who is a daughter of the defendantJoseph M. Ison, was born on the 9th day of January 1924 and resides with her motherBeatrice Bowers Brownat 1133 Boston Post Road in the Borough of the Bronx.

The defendantMetropolitan Life Insurance Company during all times hereinafter mentioned was and still is a corporation authorized to carry on a life insurance business in the State of New York.

Following the receipt of the assessment list by Joseph T. Higgins as Collector and on or about May 5, 1937, he gave notice in writing to the said Metropolitan Life Insurance Company of said assessment of $304,634.77, and the assessment remained unpaid after demand for payment, and by virtue of Section 3186 of the Revised Statutes of the United States, 26 U.S.C.A. Int. Rev.Code, § 3670 et seq., said notice declared that the amount of said assessment was a lien in favor of the claimant upon all property and rights to property belonging to the said Joseph M. Ison.

On May 5, 1937, a notice of lien in words and figures as described in paragraph 10 of the complaint was also filed with the clerk of this court.

Payments were made upon said assessment on the dates and in the amounts as follows: May 8, 1937, $7.05, by levy upon the bank account in the name of Joseph M. Ison in the Dunbar National Bank, 2300 Seventh Avenue, Borough of Manhattan; February 9, 1940, $1424.97 and $8.42, by levy upon the bank account in the name of Joseph M. Ison in the Manufacturers Trust Company, 67 West 125th Street.The defendant is allowed credit for such payments.

The plaintiff alleges upon information and belief that the Metropolitan Life Insurance Company has property and things of value in its possession or under its control that belong to the said Joseph M. Ison or in which he has a valuable interest; that is to say, the Metropolitan Life Insurance Company issued two policies of insurance numbered respectively 4,517,762C and 4,522,654C upon the life of the said Joseph M. Ison as insured, which policies were written upon standard forms and are substantially in the form of Exhibits 11 and 12 received in this case.The first of said policies is payable to the estate of Joseph M. Ison, and the...