Justia Federal District Court Opinions

This is an appeal from the order of the United States District Court for the Western District of Pennsylvania in an action brought by Ralph B. McCord ('McCord') for a partial refund of income tax paid by him for the year 1946. The facts may be summarized as follows:

On March 14, 1947, McCord filed an income tax return for 1946 with the Collector of Internal Revenue at Pittsburgh, Pennsylvania, on Form 1040. The return was prepared for McCord by Root and Co., according to a statement made thereon. On the line provided for the listing of taxpayer's name there appeared only McCord's name. On this score it must be noted that the form provided 'If this return is for a husband and wife use both first names'. In the portion of the return captioned 'Your Exemptions' the form stated 'List your own name. If married and your wife (or husband) had no income, or if this is a joint return of husband and wife, list name of your wife (or husband).' In response to that provision McCord listed on one line his own name; on the line below 'Elizabeth McCord, wife' and on the line below that Eva Lyons, mother-in-law'.

In another part of the return McCord claimed the then existing exemption of $500 each for himself, his wife and mother-in-law. In response to the printed question 'Is your wife (or husband) making a separate return for 1946' the answer was 'No'. Immediately below, on the line provided for 'Signature of taxpayer' McCord signed his name only. Again, on this score, it must be noted that immediately below the place provided for signature of taxpayer appears the printed statement: 'If this is a joint return of husband and wife, it must be signed by both.'

In a schedule attached to the return, under the heading 'Schedule C- Profit or Loss from Business', there was included inter alia, the following items:

"Sale of Real Estate

Sale of 21 lots ..... $12,300.00

Cost of lots ........ 3,932.65