United States v. Kaufman, 267 U.S. 408 (1925)

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United States v. Kaufman

Nos. 515 and 516

Argued January 13, 1925
Decided March 2, 1925
267 U.S. 408

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE SECOND CIRCUIT

Syllabus

1. A tax assessed under Revenue Act of 1918 upon the income of a partner is a tax against the individual and not the partnership, whether or not his income was derived from partnership business. P. 410.

2. In proceedings in bankruptcy against a partnership the partnership assets must first be applied to the payment of the partnership debts, and the United States is not entitled to any priority of payment out of such assets for a tax due it from an individual partner, except to the extent of the share of such partner, if any, in the surplus remaining after the payment of the partnership debts. Bankruptcy Act, § 5f, 64(a); Rev.Stats. 3466, 3186, as amended, considered. P. 411.

298 F. 11 affirmed.

Certiorari to judgments of the circuit court of appeals affirming orders of the district court, in bankruptcy which denied the right of the United States to have the income taxes of individual partners paid out of the assets of their bankrupt firms in preference to the claims of partnership creditors.