# Nitto v. Commissioner, 13 T.C. 858 (1949)

Canonical: https://mobfiles.org/items/courtlistener-nitto-v-commissioner-13-tc-858/

The Tax Court held on 30 November 1949 that the government had "established convincingly" Frank Nitto's "association with Bioff and Browne in their scheme of procuring substantial sums of money from various members of the motion picture industry," that he failed to report his share, and that fraud penalties applied.

Tax Court of the United States, Docket Nos. 8840, 8841 and 8842, decided 30 November 1949, Judge Kern. The proceedings concerned deficiencies and transferee liability against the estate of Frank Nitto. The petitioners include members of his family, who are not named here.

The court wrote: "Respondent has established convincingly, we believe, decedent's association with Bioff and Browne in their scheme of procuring substantial sums of money from various members of the motion picture industry. There can be no question but that he received some amounts in all the taxable years, and that whatever amounts he so received he failed to report for income tax purposes." The headnotes read: "Held, under the facts, decedent received unreported taxable income in the taxable years in amounts determined herein. Held, respondent did not err in determining fraud penalties." The court rejected the argument that proceeds of the venture were not taxable income.

Bioff was a witness for the government. The petitioner objected that he "may stand to gain some indefinite advantage, as a tax case in which he is involved is still pending"; the motion to strike his testimony was denied.

The opinion calls Nitto "decedent" but, in the text on CourtListener, gives no date of death; this page does not take one from it. The Tax Court's spelling is Nitto; the Second Circuit's is Nitti. The findings of fact are not reproduced on the CourtListener page.

## Sources

- CourtListener (Free Law Project), text of the opinion: https://www.courtlistener.com/opinion/4697132/nitto-v-commissioner/