Gerald A. and Henrietta v. Rauenhorst v. Commissioner of Internal Revenue

Summary

The court granted petitioners’ motion for partial summary judgment on whether their charitable transfers of stock warrants were anticipatory assignments of income. Treating the applicable revenue ruling as a concession by the Commissioner, the court held that the relevant inquiry was whether the charitable donees were legally bound or could be compelled to sell the warrants when they received them; the record established they were not. The court also concluded that the Commissioner could not litigate contrary to an unrepealed, published revenue ruling without withdrawing or modifying it.