Wilson v. Commissioner
Opinion
Memorandum Findings of Fact and Opinion
The Commissioner determined a deficiency of $559.75 in income and victory tax for the calendar year 1943. The issues for decision are whether the petitioner is entitled to a personal exemption of $1,200 as head of a family and whether the assessment of the deficiency is barred because the notice of deficiency was mailed after the period for assessing a deficiency for 1942 had expired.
Findings of Fact
The petitioner filed returns for 1942 and 1943 with the collector of internal revenue for the*168 first district of New York. The return for 1942 was filed on March 15, 1943. The notice of deficiency was mailed on February 21, 1947.
The petitioner, a spinster, purchased a dwelling at 2521 Avenue M, Brooklyn, New York, in 1931. She resided there with the other members of her family consisting of her father, mother and her sister Maud. Her father died in 1935 and her mother died in 1939. Maud was married at some time between the close of 1943 and February 25, 1948. The petitioner offered the above property for sale after Maud was married and sold it as soon as she could. She moved to an apartment.
Maud, who was about 15 months older than the petitioner, was born on September 29, 1893. She was graduated from college in 1917 and thereafter took a course in dental hygiene at Columbia and a secretarial course elsewhere. She was successfully engaged in dental hygiene work until 1935 at which time her employer discontinued its regular medical department. Thereafter she was unsuccessful in her efforts to obtain permanent employment. She was unemployed during 1942 and 1943 although capable of holding a position had she obtained one.
The petitioner's claim for the personal exemption*169 of $1,200 under section 25 (b) (1) is based upon Maud's alleged dependence upon her.
Maud filed income tax returns for 1942 and 1943 showing taxable income as follows:
| 1942 | 1943 | |
| Dividends | $404.20 | $ 404.40 |
| Interest | 143.21 | 113.57 |
| Taxable portion of endowment | ||
| policy which matured in 1943 | 520.08 | |
| $547.41 | $1,038.05 |
Maud owned at least the following assets during the calendar years 1942 and 1943, and the fair market value thereof was at least in the following amounts:
| Assets | 1942 | 1943 |
| Balance in Williamsburg Savings Bank, Account No. 17372 | $ 2,717.95 | $ 3,704.38 |
| Balance in Williamsburg Savings Bank, Account No. 208417 | 2,478.54 | |
| Balance in Seamans Bank for savings | 757.70 | 791.60 |
| 38 Shares Amer. Tel. & Tel. Co. | 4,840.25 | 5,937.50 |
| 15 Shares Westinghouse Elec. Mfg. Co. | 1,226.25 | 1,413.75 |
| 11 Shares Radio Corp. of America | 53.62 | 104.50 |
| $500.00 par value Amer. Tel. & Tel. 3% bonds, 1956 | 536.25 | 580.00 |
| Total Assets | $10,132.02 | $15,010.27 |
Maud did not contribute any of her money towards living expenses during 1942 or 1943 but*170 placed her income in her savings accounts.
The petitioner gave Maud cash and paid various amounts directly for her benefit during 1942 and 1943. These expenditures were for clothing, accident, life and endowment insurance premiums, college dues, Dental Association dues, and miscellaneous supplies. The total amounts were $1,269.69 for 1942 and $1,051.29 for 1943. The record does not show any breakdown of those totals.
The petitioner also expended the following amounts:
| 1942 | 1943 | |
| Meals | $ 320.14 | |
| Maid | $ 495.00 | 585.00 |
| Gas and electricity | 100.54 | 110.72 |
| Household expenses |