Orphan date February 2009 Italic title Artnell Company v. Commissioner , 400 F.2d 981 7th Cir. 1968 is a decision by the 7th Circuit Court of Appeals , in which the court, distinguishing from the holding in Schlude v. Commissioner , held that accrual method taxpayers are not required to include prepayments in gross income when there is certainty as to when performance would occur. Facts The petitioner, an accrual method taxpayer, operated the Chicago White Sox professional baseball franchise using a fiscal year for federal income tax purposes. During the 1962 taxable year, the club sold single and season tickets to games to be played during the 1963 taxable year. The petitioner failed to report income from the sales on its 1962 return and instead reported the receipts as income in 1963. The petitioner s decision to include income from its ticket sales in 1963, rather than 1962, was part of their practice of reporting income from ticket sales as the corresponding games were played. The Commissioner argued that, in light of Schlude v. Commissioner , the income should have been reported in the year in which the payment was received, the 1962 taxable year. Issue Must the taxpayer include in gross income for 1962 the sale of proceeds received from tickets allocable to games to be played in 1963? Holding No. Despite the general rule that requires accrual method taxpayers to include advance payments in the year of receipt, the court carved out a narrow exception for taxpayers such as the petitioners, who are able to prove that services will be performed on fixed dates in one or more subsequent taxable years. Rationale Generally, accrual method taxpayers include income in taxable year it is earned, rather than when it is received. However, the Supreme Court trilogy ref http supreme.justia.com us 367 687 case.html AMERICAN AUTOMOBILE ASS N V. UNITED STATES, 367 U. S. 687 1961 US ... occur. The court distinguished the facts of Artnell from this holding and found that the uncertainties ... more details
orphan date August 2009 In Washburn v. Commissioner , 5 T.C. 1333 T.C. 1945 , the United States Tax Court attempted to set down some guidelines to determine whether a prize or award qualified as a gift . During 1941, Mrs. Washburn s telephone number was randomly selected and the radio program Pot O Gold called and awarded her 900 for simply answering the phone. The check was delivered within a half hour by a messenger with a telegram that read Herewith draft for nine hundred dollars outright cash gift with our compliments presented by Tum s Pot O Gold program. Congratulations from Tommy Tucker and ourselves. Signed Lewis Howe Company, Makers of Tums. 36 The court concluded that the radio show giveaway prize constituted a nontaxable gift since there was no expectation or effort on the part of the recipient, no subsequent obligation on her part to perform any services or to make any commercial endorsement, no wager made by the recipient, and since the prize transferor had denominated the payment as an outright cash gift. 37 This case became known as the Pot O Gold case. The criteria set forth by the court, including the donor s subjective intention and the lack of effort or obligation on the part of the recipient, became standards by which subsequent courts analyzed the taxability of prizes and awards. 38 Aftermath In response to this and other cases e.g. the Ross Essay Contest case, McDermott v. Commissioner holding that prizes constituted nontaxable gifts, Congress added 74 to the 1954 Code. See S. REP. NO. 1622, 83d Cong., 2d Sess. 13, 178 1954 , reprinted in 1954 U.S. CODE CONG. & AD. NEWS 4621, 4813. Since enactment of 74, courts have rejected the gift theory for prizes and awards. See, e.g., Simmons v. United States, 197 F. Supp. 673 D. Md. 1961 , aff d, 308 F.2d 160 4th Cir. 1962 Hornung v. Commissioner, 47 T.C. 428 1967 . References Washburn v. Commissioner, 5 T.C. 1333 T.C. 1945 DEFAULTSORT Washburn V. Commissioner Category United States Tax Court cases ... more details
Poyner v. Commissioner 301 F.2d 287 4th Cir.1962 ref cite court litigants Poyner v. Commissioner vol 301 F.2d 287 court 4th Cir. date 1962 url http vlex.com vid poyner mervin pierpont lallah 36686881 ref is a United States tax law case that discusses whether special death benefits paid to an employee s widow are exempt from taxes as a gift under 102 a . It produces five factors as a pertinent test 1 whether the payments were made to the spouse of the deceased shareholder, not to his estate 2 whethor the payor had been under no obligation to make the payments and had, in fact, decided on previous occasions not to make payments to persons qualified 3 whether the company derived benefit of an economic nature from the payments 4 whether the recipient had ever performed any services for the company 5 whether the services of the deceased employee had been fully compensated during his lifetime. Citations Commissionerv. Duberstein , 363 U.S. 278 1960 United States v. Kaiser , 363 U.S. 299 1960 Bogardus v. Commissioner , 302 U.S. 34 1937 Simpson v. United States, 261 F.2d 497 7th Cir. 1958 Bounds v. United States, 262 F.2d 876 4th Cir. 1958 References references Category United States taxation and revenue case law Category United States Court of Appeals for the Fourth Circuit cases Category Legal articles without infoboxes case law stub ... more details
Infobox SCOTUS case Litigants Bogardus vCommissioner of Internal Revenue ArgueDate October 18 ArgueYear 1937 DecideDate November 8 DecideYear 1937 FullName Bogardus v. Commissioner of Internal Revenue USVol 302 USPage 34 Citation 58 S.Ct. 61 82 L.Ed. 32, 37 2 USTC P 9534 19 A.F.T.R. 1195 1937 2 C.B. 258 Prior Bogardus vCommissioner of Internal Revenue Reversed 88 F. 2d 646 Subsequent Holding That a distribution of money by a corporation, by a resolution passed by the board of directors and stockholders, to the company s past and present employees who had no ties with the corporation, in recognition of there past service was a non taxable gift which the company received no servers for so it was not compensation for personal services. SCOTUS 1937 1938 Majority Sutherland JoinMajority McReynolds, Butler, Roberts, Hughes Concurrence JoinConcurrence Concurrence2 JoinConcurrence2 Concurrence Dissent JoinConcurrence Dissent Dissent Brandeis JoinDissent Stone, Cardozo, Black Dissent2 JoinDissent2 LawsApplied 26 U.S.C.A. 22 Bogardus v. Commissioner , ussc 302 34 1937 ref cite court litigants Bogardus v. Commissioner vol 302 U.S. 34 court U.S. Supreme Court date November 8, 1937 url http supreme.justia.com us 302 34 case.html ref was a case before the U.S. Supreme Court discussing, under United States tax law , how to distinguish compensation from tax exempt gifts under 102 a . It is notable and thus appears frequently in law school casebook s for the following holdings A payment cannot be both compensation for personal service within the meaning of 22 a of the Revenue Act of 1928 and a gift under b 3 of the same section. Old Colony Trust Co. v. Commissioner , 279 U. S. 716, distinguished. Payments made to present and former employees of a corporation by its former stockholders ... Empty section date July 2010 See also Commissionerv. Duberstein cites this case References wikisource Bogardus v. Commissioner of Internal Revenue Reflist DEFAULTSORT Bogardus V. Commissioner ... more details
Infobox SCOTUS case Litigants Commissionerv. Duberstein ArgueDate March 23 ArgueYear 1960 DecideDate June 13 DecideYear 1960 FullName Commissioner of Internal Revenue v. Duberstein, et ux. USVol 363 USPage 278 Citation Prior Subsequent Holding The court upheld the Tax court s ruling with regards to Duberstein but split as to Stanton. SCOTUS 1958 1962 Majority Brennan JoinMajority Concurrence JoinConcurrence Concurrence2 JoinConcurrence2 Concurrence Dissent Frankfurter JoinConcurrence Dissent Harlan Concurrence Dissent2 Black JoinConcurrence Dissent2 Dissent Douglas JoinDissent Dissent2 JoinDissent2 LawsApplied wikisource Commissioner Of Internal Revenue v. Duberstein Commissionerv. Duberstein , ref cite court litigants Commissionerv. Duberstein vol 363 U.S. 278 court date 1960 url http supreme.justia.com us 363 278 case.html ref was a United States Supreme Court case dealing with the exclusion of the value of property acquired by gift from the gross income of an income taxpayer. It is notable and thus appears frequently in law school casebooks for the following holdings When determining whether something is a gift for taxation purposes, the critical consideration is the transferor ... interested act. Facts The Court was presented with two sets of facts. No. 376, Commissionerv. Duberstein ... Bogardus v. Commissioner , ussc 302 34 1937 . This is a question of fact that must be determined on a case ... generosity. Duberstein at 285 quoting Commissioner of Internal Revenue v. LoBue , 351 U.S. ... cases, volume 363 Bogardus v. Commissioner , ussc 302 34 1937 References references Category United ... when he filed his tax return, deeming it a gift. The Commissioner asserted a deficiency for the car s value against Duberstein. The Tax court affirmed. No. 506, Stanton v. United States Stanton ... at 285 quoting Robertson v. United States , 343 U.S. 711, 714 1952 . Contrast payments given as an involved and intensely interested act. See Olk v. United States , 536 F.2d 876 9th Cir. 1976 ... more details
Infobox SCOTUS case Litigants Schlude v. Commissioner ArgueDate December 10 ArgueYear 1962 DecideDate February 18 DecideYear 1963 FullName Schlude, et ux. v. Commissioner of Internal Revenue USVol 372 USPage 128 Citation Prior Subsequent Holding Under the accrual method, taxpayers must include as income in a particular year advance payments by way of cash, negotiable notes, and contract installments falling due but remaining unpaid during that year. SCOTUS 1962 1965 Majority White JoinMajority Warren, Black, Clark, Brennan Dissent Stewart JoinDissent Douglas, Harlan, Goldberg LawsApplied wikisource Schlude v. Commissioner of Internal Revenue Schlude v. Commissioner , Case citation 372 U.S. 128 1963 , ref http supreme.justia.com us 372 128 case.html SCHLUDE V. COMMISSIONER, 372 U. S. 128 1963 US Supreme Court Cases from Justia & Oyez Bot generated title ref is a decision by the United States Supreme Court in which the Court held that, under the Comparison of Cash Method and Accrual Method of accounting Accrual basis accrual method , taxpayers must include as income in a particular year advance payments by way of cash , negotiable notes, and contract installments falling due but remaining ... City Foundry v. Commissioner . In Spring City Foundry , the Court held that, for an accrual basis ..., there was no schedule of specific dates. The Commissioner included in gross income for the years ... due but remaining unpaid during that year. The Tax Court and the Court of Appeals upheld the Commissioner. Issue Was it proper for the Commissioner, exercising his discretion under 446 b to reject the studio ... unpaid during that year? Holding The Supreme Court holds that it was proper for the Commissioner ... by American Automobile Association v. United States . Rationale In American Automobile Association v. United States , ref http supreme.justia.com us 367 687 case.html AMERICAN AUTOMOBILE ASS N V ... the Court held that the Commissioner was correct in including in taxpayer s gross income for each ... more details
orphan date August 2009 Wills v. Commissioner , 411 F.2d 537, 539 9th Cir. 1969 was a Taxation in the United States United States taxation case decided by the United States Court of Appeals for the Ninth Circuit in 1969. Facts and case history The taxpayers were a professional baseball player for a California team and his wife, whose family resided in Washington U.S. state Washington . The taxpayers had received a car and a belt for athletic achievements. The taxpayers were notified of deficiencies in reported income for improper business travel and award Tax deduction deductions . The Commissioner of Internal Revenue determined that deductions for travel, meals, and lodging were not deductible under 26 U.S.C.S. 62, and that the taxpayers owed taxes on the fair market value of the car and belt under 26 U.S.C.S. 74. The United States Tax Court sustained respondent Commissioner s determination of deficiencies in the taxpayers income tax es paid due to improper deductions under 26 U.S.C.S. 62 2 B , 74. contending that California was not their home and that the car and belt were non taxable civic achievement awards. Opinion of the court The Ninth Circuit affirmed the Commissioner s decision, concluding that the taxpayers tax home was Los Angeles because that city was the permanent post of duty. Thus, expenses incurred in that area were not deductible business expenses. Moreover, the taxpayer s car and belt were taxable as ordinary income because receipt of awards or prizes for athletic achievement were not excepted under 74. The awards were taxable as ordinary income based on their fair market value when they were received. The court affirmed the Commissioner s decision that the taxpayers reported deficient income because travel, meals, and lodging expenses incurred in the city that was one taxpayer s primary post of duty were not deductible business expenses. Furthermore, the taxpayers owed taxes on the fair market value of awards received in connection with athletic achievements ... more details
property solely to exchange it for Buena Park. ref Alderson v. Commissioner, 317 F.2d 790 ... used the case of Commissionerv. Court Holding Co. ref 324 U.S. 331 1945 . ref There, it was determined .... The Commissioner argued that Gregory v. Helvering ref 293 U.S. 465 1935 . ref supported their position .... Finally, the court used the holding from Mercantile Trust Company of Baltimore v. Commissioner ... V. Commissioner Category United States Court of Appeals for the Ninth Circuit cases Category .... ref Id. at 794 citing Commissioner, at 331 . ref That is, what was the substantive transaction ... more details
SCOTUSCase Litigants Commissionerv. Wilcox ArgueDate January 8 ArgueYear 1946 DecideDate February 25 DecideYear 1946 FullName Commissioner of Internal Revenue v. Wilcox, et al. USVol 327 USPage 404 Citation 66 S. Ct. 546 90 L. Ed. 752 1946 U.S. LEXIS 3084 46 1 U.S. Tax Cas. CCH P9188 34 A.F.T.R. P H 811 1946 1 C.B. 6 166 A.L.R. 884 1946 P.H. P72,014 Prior Certiorari to the Circuit Court of Appeals for the Ninth Circuit Subsequent Holding SCOTUS 1945 1946 Majority Murphy JoinMajority Stone, Black, Reed, Frankfurter, Douglas, Rutledge Dissent Burton NotParticipating Jackson LawsApplied 22 a of the Internal Revenue Code Overruled James v. United States 1961 James v. United States , 366 U.S. 213 1961 Commissionerv. Wilcox , 327 U.S. 404 1946 , was a case decided by the Supreme Court of the United States . The issue presented in this case was whether embezzled money constituted taxable income to the embezzler under 22 a of the Internal Revenue Code of 1939 . Although the Court ruled that the embezzlement income was not taxable to the embezzler in Wilcox , the Court later overruled this holding in James v. United States 1961 James v. United States . See also List of United States Supreme Court cases, volume 327 Further reading wikisource Commissioner of Internal Revenue v. Wilcox cite journal last Gilbert first J. H., Jr. authorlink coauthors year 1962 month title Problems Resulting from Taxation of Embezzled Funds journal Florida Law Review volume 15 issue pages 98 issn 10454241 url accessdate quote cite journal last Grow first J. authorlink coauthors year 1961 month title An Historical Approach to the Concept of Income Taxation of Embezzled Funds journal Alabama Law Review volume 14 issue pages 91 issn 00024279 url accessdate quote cite journal last Landisman first Joseph authorlink coauthors year 1946 month title Embezzled Funds as Income journal California Law Review volume 34 issue 2 pages 449 452 doi 10.2307 3477187 quote publisher California Law Review, Vol. 34, No. 2 ... more details
Infobox SCOTUS case Litigants Arrowsmith v. Commissioner ArgueDate October 24 ArgueYear 1952 DecideDate November 10 DecideYear 1952 FullName Arrowsmith et al., Executors, et al. v. Commissioner of Internal Revenue USVol 344 USPage 6 Citation Prior Subsequent Holding The taxpayers are limited to deducting capital losses, since they were required to pay the judgment because of liability imposed on them as transferees of liquidation distribution assets. SCOTUS 1949 1953 Majority Black JoinMajority Vinson, Reed, Burton, Clark, Minton Concurrence JoinConcurrence Concurrence2 JoinConcurrence2 Concurrence Dissent JoinConcurrence Dissent Dissent Douglas JoinDissent Dissent2 Jackson JoinDissent2 Frankfurter LawsApplied wikisource Arrowsmith v. Commissioner of Internal Revenue Arrowsmith v. Commissioner , ussc 344 6 1952 , is a United States Supreme Court case regarding taxation . The case involves taxpayers who liquidated a corporation in 1937. The taxpayers properly reported the income from the liquidation as long term capital gains, thus obtaining a preferential tax rate. Subsequent to the liquidation in 1944, the taxpayers were required to pay a judgment arising from the affairs of the liquidated corporation. The taxpayers classified this payment as an ordinary business loss, which would allow them to take a greater deduction for the loss than would be permitted for a capital loss. ref Id. at 7. ref The Arrowsmith Doctrine is a principle of United States Federal Income tax law that holds that financial restorations associated with prior income items take the same tax flavor as the prior income items. The Commissioner of Internal Revenue characterized the payment of the judgment ... and revenue case law Category 1952 in United States case law DEFAULTSORT Arrowsmith V. Commissioner ... business loss. The Tax Court disagreed with the Commissioner and found it to be an ordinary ... United States v. Lewis , ussc 340 590 1951 . ref However, the Supreme Court held treating the proceeds ... more details
Infobox SCOTUS case Litigants Commissionerv. Tufts ArgueDate November 29 ArgueYear 1982 DecideDate May 2 DecideYear 1983 FullName Commissioner of Internal Revenue v. Tufts, et al. USVol 461 USPage 300 Citation 103 S. Ct. 1826, 75 L. Ed.2d 863 1983 Prior 70 T.C. 756 1978 , reversed by 651 F.2d 1058 5th Cir. 1981 Subsequent Holding When a taxpayer sells or disposes of property encumbered by a nonrecourse obligation exceeding the fair market value of the property sold, the Commissioner may require him to include in the amount realized the outstanding amount of the obligation. SCOTUS 1981 1986 Majority Blackmun JoinMajority unanimous court Concurrence O Connor LawsApplied usc 26 1001 b Commissionerv. Tufts , 461 U.S. 300 1983 , was a unanimous decision by the United States Supreme Court , which held that when a taxpayer sells or disposes of property encumbered by a nonrecourse obligation exceeding the fair market value of the property sold, the Commissioner of Internal Revenue may require him to include in the amount realized the outstanding amount of the obligation the fair market value of the property is irrelevant to this calculation. Facts Taxpayers borrowed 1,851,500 on a non recourse basis to build an apartment complex. When their basis in the property was 1,455,740 after their invested capital of 44,212 and deductions taken in the amount of 439,972 , they sold it for no consideration other than the assumption of the non recourse liability. ref Commissionerv. Tufts , 461 U.S. 300 1983 . ref The fair market value of the property at the time of sale was 1,400,000, so they claimed a loss of 55,740. ref name Tufts at 300 Tufts at 300. ref The Tax Commissioner insisted instead ... rendered in Crane v. Commissioner specifically that a taxpayer must incorporate the amount of mortgage ... at 304 307 see also Crane v. Commissioner , ussc 331 1 1947 . ref In doing so, the Court stated ... with Property The Two Step Analysis after Commissionerv. Tufts journal Tax Lawyer volume 38 issue ... more details
Infobox SCOTUS case Litigants Commissionerv. Sunnen ArgueDate December 17 ArgueYear 1947 DecideDate April 5 DecideYear 1948 FullName Commissioner of Internal Revenue v. Sunnen USVol 333 USPage 591 Citation 68 S.Ct. 715 Prior Subsequent Certiorari Cert to the United States Court of Appeals for the Fourth Circuit Holding The general rule of res judicata applies to tax proceedings involving the same claim and the same tax year, while the doctrine of collateral estoppel, which is a narrower version of the res judicata rule, applies to tax proceedings involving similar or unlike claims and different tax years. SCOTUS 1946 1949 Majority J. Murphy JoinMajority unanimous Commissionerv. Sunnen , Case citation 333 U.S. 591 1948 , was a case decided by the Supreme Court of the United States in 1948 in which the Court outlined the scope of collateral estoppel or estoppel by judgment in determinations of Federal taxation in the United States federal tax liability. This was important because a single controversial circumstance may have a bearing on Income tax in the United States income tax liability for several years. Res judicata , as part of the doctrine of judicial finality , protects a taxpayer s tax liability for a given year once the taxpayer wins a judgment in court. The judgment is not only controlling with regard to the issues litigated, but also any issues that could have been raised which would have affected the determination of tax liability for the year. But of course, a single controversial circumstance may have a bearing on income tax liability for several years, and if a judgment fixes liability for one of the years, res judicata only forecloses the reopening of that year s liability. But the related doctrine of collateral estoppel prevents relitigation of issues that were ... the controlling facts and applicable legal rules remain unchanged. ref Commissionerv. Sunnen ... 333 References references External links caselaw source case Commissionerv. Sunnen , 333 U.S. 591 ... more details
Infobox SCOTUS case Litigants INDOPCO, Inc. v. Commissioner ArgueDate November 12 ArgueYear 1991 DecideDate February 26 DecideYear 1992 FullName INDOPCO, Inc. v. Commissioner of Internal Revenue USVol 503 USPage 79 Citation Prior Subsequent Holding Expenditures incurred by a target corporation in the course of a friendly takeover are nondeductible capital expenditures. SCOTUS 1991 1993 Majority Blackmun JoinMajority unanimous court LawsApplied INDOPCO v. Commissioner , Case citation 503 U.S. 79 1992 , ref ussc 503 79 Full text opinion from Findlaw.com ref was a United States Supreme Court case in which the Court held that expenditures incurred by a target corporation in the course of a friendly takeover are nondeductible capital expenditures. Question presented Are certain professional expenses incurred by a target corporation in the course of a friendly takeover deductible by that corporation as ordinary and necessary business expenses under 162 a of the Internal Revenue Code ? ref cite book title Federal Income Taxation of Individuals Cases, Problems and Materials last Donaldson first Samuel A. authorlink coauthors year 2007 publisher Thompson West location St. Paul, MN isbn 9780314175977 edition Second pages ref Key facts In 1977, Unilever a Delaware corporation expressed interest ... operations is not an ordinary and necessary business expense. General Bancshares Corp. v. Commissioner ... Grigsby first McGee authorlink coauthors Chinnis, Cabell, Jr. year 1992 month title Indopco v. Commissioner ... 44 issue pages 85 issn 00400025 url accessdate quote External links Wikisource INDOPCO, Inc. v. Commissioner of Internal Revenue caselaw source case INDOPCO, Inc. v. Commissioner , 503 U.S. 79 1992 findlaw ... all of these fees as deductions. The Commissioner of the Internal Revenue Service disallowed the claimed ... Circuit Court of Appeals for the Third Circuit affirmed the Commissioner s decision. The courts ... v. Deduction Debate? last Bankman first Joseph authorlink editor Caron, Paul L. ed. year 2002 ... more details
orphan date February 2009 Lohrke v. Commissioner , 48 T.C. 679 1967 , is a significant case cited for its opinion which further articulated a much litigated phrase ordinary and necessary business expense in the Tax code Tax Code , 26 U.S.C.S. 162 a . Although it has been distinguished in nine cases, it has been followed by thirteen cases and cited in various treatises. In Lohrke , the United States Tax Court Tax Court determined that when the taxpayer paid for expenses that he was not actually obligated to pay, he could still deduct them as an ordinary and necessary business expense under 26 U.S.C.S. 162 a of the Tax Code. Facts In Lohrke , the petitioner was a licensor and inventor as well as President for Lohrke Textiles, Inc. Textiles . Although petitioner and Textiles are separate taxable entities, petitioner paid for the damages caused by a defective shipment of fiber for which he owned the patent which created it. Petitioner felt that to protect his business it was both ordinary and necessary to reimburse the customer s to save his business reputation. The respondent argued that because petitioner was not obligated to pay, this payment did not fall under the definition of an ordinary and necessary business expense found in 26 U.S.C.S. 162 a and should consequently not be Tax deduction deductible . Decision The Court determined that the expenditure was primarily for the furtherance or promotion of that trade or business and thus qualified as an ordinary and necessary business expense under U.S.C.S. 162 a of the Tax Code. This is significant because there is a general rule that one taxpayer cannot deduct expenses that are the obligation of another. References Lohrke v. Commissioner , 48 T.C. 679 1967 Donaldson, Samuel A., Federal Income Taxation of Individuals Cases, Problems, and Materials. Second Edition. West. 2007. DEFAULTSORT Lohrke V. Commissioner Category United States taxation and revenue case law ... more details
orphan date August 2009 Clark v. Commissioner , 40 B.T.A. 333, 335 B.T.A. 1939 was an important early United States income tax case. Background Facts The taxpayers, Marriage husband and wife , made an irrevocable election to file a joint Taxation in the United States federal income tax return rather than separate returns on the advice of their return preparer . Subsequently, the Service examined the return and assessed a deficiency against the taxpayer s. The deficiency existed because the return preparer took a larger deduction from income for capital losses than was allowed by law. If the taxpayers had filed separate returns employing the proper deduction for long term capital losses, their combined tax liability would have been 19,941.10 less than the amount they paid on their joint return. As recompense for his error, the return preparer indemnified the taxpayers in that amount. Deficiency assessed The Service included the indemnification payment in taxpayers income as an amount attributable to the return preparer s payment of the taxpayer s income tax liability. Opinion of the court The Board rejected the Service s argument that this payment was income and stated that p etitioner s taxes were not paid for him by any person . . . h e paid his own taxes. . . .The money was paid to petitioner, not qua taxes, . . . but as compensation for his loss. 40 B.T.A. at 335. The fact that the underlying obligation was for taxes is of no moment here. Id. References Clark v. Commissioner, 40 B.T.A. 333, 335 B.T.A. 1939 Federal income Tax by Klein, Bankman, Shaviro, Stark Category 1939 in United States case law Current legal status the ultimate grounds for the decision in Clark, that the payment received by the taxpayer from his tax preparer was not derived from capitol, from labor, or from both combined, is no longer good law. See Glenshaw glass Co. v. Commissioner. HOWEVER, the holding in Clark does remain good law. In other words, the reasoning the court used is no longer valid ... more details
Context date October 2009 Infobox Court Case name Salvatore v. Commissioner court United States Tax Court image Tax court.gif date decided February 4, 1970 full name Susie Salvatore v. Commissioner citations 29 T.C.M. CCH 89, CCH Dec. 29,941 M , T.C. Memo 1970 30, RIA T.C. Memo ¶ 70030 1970 judges Featherstone prior actions subsequent actions 434 F.2d 600 opinions Petitioner is taxable on all of the gain realized on the sale of the gas station Infobox Court Case name Salvatore v. Commissioner court United States Court of Appeals for the Second Circuit image US CourtOfAppeals 2ndCircuit Seal.png date decided November 30, 1970 full name Susie Salvatore , Appellant, v. Commissioner of Internal Revenue, Appellee citations 434 F.2d 600 judges Irving Kaufman , Paul Raymond Hays , and John Joseph Gibbons prior actions 29 TCM CCH 89 1970 , RIA T.C. Memo ¶ 70030 subsequent actions opinions The Tax Court was not clearly erroneous and therefore the decision was affirmed. Salvatore v. Commissioner ... in the Supreme Court of the United States Supreme Court case of Commissionerv. Court Holding Co ... impair the effective administration of the tax policies of Congress. ref Commissionerv. Court ..., and that the Salvatore children were not sellers but mere conduits. ref Salvatore v. Commissioner , 434 F.2d 600 2d Cir. 1970 . ref Other relevant cases In Helvering v. Horst , ref 211 U.S. 112 1940 ... v. Commissioner , ref 472 F.2d 867 6th Cir. 1973 . ref the United States Court of Appeals for the Sixth ... limitations on the fruit and tree metaphor established in Lucas v. Earl , 281 U.S. 111 1930 and further developed in Helvering v. Horst , 311 U.S. 112 1940 . Decided in 1970, the case arose when a taxpayer ..., Texaco, Inc. made a proposal to purchase the land for 295,000. ref name ustc ruling Salvatore v. Commissioner , 29 TCM CCH 89 1970 , RIA T.C. Memo ¶ 70030 ref To ensure Susie Salvatore s accustomed ... their respective shares on their income tax forms as well. The Commissioner of Internal Revenue ... more details
Multiple issues orphan August 2009 wikify August 2009 Sibla v. Commissioner , 611 F.2d 1260 9th Cir. 1980 , was an important income tax case regarding 26 U.S.C.S. 162 a Background Facts Petitioner firefighter taxpayers were required to participate in a mandatory organized mess at their station house and to pay for the station house meals even when their duties took them away from the station at mess time. Tax return Petitioners claimed the cost of the meals as business deductions under 26 U.S.C.S. 162 a . Respondent Commissioner of Internal Revenue disallowed the deductions. Tax court The United States Tax Court tax court overruled respondent and allowed the deduction Issues Respondent Commissioner of Internal Revenue, in consolidated cases, appealed the judgments from the United States Tax Court, which held that under 26 U.S.C.S. 162 a , petitioner firefighter taxpayers could deduct the amount that their employer charged them for their meals under its mandatory organized mess. Respondent claimed that the charge was a nondeductible personal expense under 26 U.S.C.S. 262. Opinion of the court On appeal, the court found that petitioners participation in the organized mess was not voluntary, that the charge for the meals equaled the value of the meals, that the mandatory mess was for the convenience of the employer as part of its integration program, and that the employer did not reimburse petitioners for meals that they were not able to eat at the station. Thus, the expenses of the mess were not nondeductible living expenses under 26 U.S.C.S. 262, but were either deductible business expenses under 162 a or were employer furnished meals that were excludable from income under 26 U.S.C.S. 119. Therefore, the court affirmed the judgments. The court affirmed the judgments allowing petitioner firefighter taxpayers to deduct the amount that they paid for their meals as part of their employer .... References Sibla v. Commissioner, 611 F.2d 1260 9th Cir. 1980 DEFAULTSORT Sibla V. Commissioner ... more details
Multiple issues orphan August 2009 wikify August 2009 Early v. Commissioner , 445 F.2d 166 United States Court of Appeals for the Fifth Circuit 5th Cir. 1971 was a United States income tax case, holding that an agreement between taxpayers and heirs of decedent pursuant to which taxpayers received a joint life interest in income from the trust estate in return for the surrender of stock allegedly gifted to them by the decedent was actually a compromise of the taxpayers disputed right to the stock, and since they claimed the stock as donees, they were to be treated as having acquired their life estate in that capacity for Taxation in the United States federal income tax purposes. Background Facts Appellee taxpayers acquired interest in stock from decedent as a gift. Due to a will contest , appellees agreed to return the stock to the estate in exchange for a life estate in a portion of the income. Tax returns Appellees sought to amortize the value of the life estate in subsequent tax returns, which appellant Commissioner of Internal Revenue disallowed. The Commissioner disallowed the deductions for amortization on the ground that taxpayers life interest was acquired by gift, bequest, or inheritance and that the deductions were therefore prohibited by 273 of the Code. Tax court Taxpayers filed a petition for redetermination in the United States Tax Court Tax Court , asserting that 273 was inapplicable. They also contended that notwithstanding the Tax exemption tax exempt source of some of the income the amortization was fully deductible, and accordingly claimed refunds for the years in which they had not taken deductions for amortization allocated to tax exempt income. The Tax ... Early v. Commissioner , 445 F.2d 166 5th Cir.1971 Category United States taxation and revenue ... life interest, and that 273 does not apply to purchased life estates. See Gist v. United States, 296 F. Supp. 526 S.D. Cal. 1968 . Issue Appellant Commissioner of Internal Revenue sought review of a decision ... more details
refimprove date November 2008 Infobox SCOTUS case Litigants Hernandez v. Commissioner ArgueDate November 28 ArgueYear 1988 DecideDate June 5 DecideYear 1989 FullName Robert L. Hernandez v. Commissioner of Internal Revenue USVol 490 USPage 680 Citation 109 S.Ct. 2136 104 L.Ed.2d 766 Prior Certiorari to the United States Court of Appeals for the First Circuit Subsequent Holding The payments for auditing or training sessions do not satisfy the contribution s or gift s inquiry necessary for deductibility under Internal Revenue Code 170. SCOTUS 1988 1990 Majority Marshall JoinMajority Rehnquist, White, Blackmun, Stevens Dissent O Connor JoinDissent Scalia NotParticipating Brennan, Kennedy LawsApplied Hernandez v. Commissioner , Case citation 490 U.S. 680 1989 , is a decision of the United States Supreme Court relating to the Internal Revenue Code 170 charitable contribution deduction. ref http www.taxalmanac.org index.php Sec. 170 TaxAlmanac Internal Revenue Code Sec. 170. Charitable, etc., contributions and gifts Bot generated title ref Facts The Church of Scientology , founded by L. Ron Hubbard , believe that an immortal spiritual being exists inside everyone. The Church uses the Auditing Scientology auditing practice to help interested people become aware of this spiritual being. The Church uses the training courses to help participants to become auditors. The Church charges for those services due to the belief that, any time a person receives something, that person must pay something ... http supreme.justia.com us 490 680 case.html HERNANDEZ V. COMMISSIONER, 490 U. S. 680 1989 US ... wikisource inline Hernandez v. Commissioner of Internal Revenue References reflist 2 Further reading ... title Hernandez v. Commissioner of Internal Revenue, 490 U.S. 680 1989 url http ssrn.com abstract ...&ndash 116 doi 10.1002 bsl.2370100110 url Scientology DEFAULTSORT Hernandez V. Commissioner Category ... 105 case.html UNITED STATES V. AMER. BAR ENDOWMENT, 477 U. S. 105 1986 US Supreme Court Cases from Justia ... more details
Hornung v. Commissioner ref name Hornung428 Hornung v. Commissioner , 47 T.C. 428 T.C. 1967 . ref is a case heard by the United States Tax Court in 1967. Issues Whether the value of a 1962 Chevrolet Corvette won by Paul Hornung taxpayer for his performance in the 1961 National Football League championship game should be included in his gross income for the taxable year 1962 ref name Hornung429 Hornung v. Commissioner , 47 T.C. 429 T.C. 1967 . ref Whether the value of the use of the 1962 Ford Thunderbird Thunderbird automobiles furnished to Hornung by Ford Motor Company Ford should be included in gross income for the taxable year 1962 ref name Hornung429 Whether Hornung s gross income for 1962 ... v. Commissioner , 47 T.C. 430 T.C. 1967 . ref The 1961 National Football League Championship was played ... any other services in order to receive the vehicle. ref name Hornung431 Hornung v. Commissioner , 47 ... Hornung v. Commissioner , 47 T.C. 432 T.C. 1967 . ref A local Ford dealership furnished Hornung ... any gross income with respect to the stole given to his mother. ref name Hornung433 Hornung v. Commissioner ... in which they are actually or constructively received. ref name Hornung434 Hornung v. Commissioner ... to give to Hornung to establish his possession. ref name Hornung435 Hornung v. Commissioner , 47 ... income to Hornung. ref name Hornung437 Hornung v. Commissioner , 47 T.C. 437 T.C. 1967 . ref The court ... whether the economic benefit to Hornung was gross income. ref name Hornung439 Hornung v. Commissioner , 47 T.C. 439 T.C. 1967 . ref Relying on the test provided in Commissionerv. Glenshaw ... v. Commissioner , 47 T.C. 439 441 T.C. 1967 see also Commissionerv. Glenshaw Glass Co. , 348 ... Hornung v. Commissioner , 47 T.C. 441 T.C. 1967 . ref Holding Pertaining to the 1962 Corvette Issue ... income. ref Hornung v. Commissioner , 47 T.C. 437 441 T.C. 1967 . ref Pertaining to the Fur Stoles ... in 74 b refer to activities enhancing in one way or another the public good. Simmons v. United ... more details
Orphan date February 2009 Primarysources date November 2007 Teschner v. Commissioner was a tax law case involving the United States Internal Revenue Service IRS in 1962. The case is more specifically known as Paul A. Teschner and Barbara M. Teschner vCommissioner of Internal Revenue ref name Teschnerat1003 Teschner v. Commissioner , 38 T.C. 1003, 1962 U.S. Tax Ct. LEXIS 65. ref 38 T.C. 1003 1962 . Key elements of the case Facts Taxpayer, Paul Teschner Paul , entered a contest sponsored by Johnson & Johnson, Inc. for a youth scholarship. Any person in the United States or Canada could enter. Besides the standard entry form there was also a fifty word essay that had to be written with the entry. The prizes consisted of annuity policies in different amounts depending on the place you were awarded. The rules also stated that only persons under the age of 17 years and 1 month were eligible to receive the prizes. If someone entered that was over that age, they had to designate a person below the age of 17 on the entry form to be eligible to win. Paul entered the name of his seven year old daughter, Karen. Paul s entry was chosen and Karen received the prize for fourth place, 1,500. Paul and his wife, filing a joint return, did not include any amount in their 1957 income tax return with regard to the prize. Respondent, Commissioner, determined that the policy constituted gross income to the petitioners. Issue Whether the petitioners taxpayer are taxable on a prize receive by their daughter. Analysis Paul could not have, under any circumstances, received the income from the contest. He didn t have any right to its receipt or enjoyment. The only thing that Paul could do was designate another person to be the beneficiary of that right. ref name Teschnerat1006 Teschner at 1006. ref ... on his part the choice was to accept the terms of the contest or reject them. The respondent, Commissioner, relies heavily on the case Helvering v. Horst ref name Helvering Helvering v. Horst , 311 ... more details
Infobox court case name Benaglia v. Commissioner court U.S. Board of Tax Appeals image imagesize imagelink imagealt caption full name date decided 1937 citations transcripts judges number of judges decision by prior actions appealed from appealed to subsequent actions related actions opinions keywords Flatlist income tax employee benefit italic title Benaglia v. Commissioner 36 B.T.A. 838 1937 is a United States income tax case heard in the U.S. Board of Tax Appeals , discussing when an employee can exclude employer provided benefits from his income. The Board held that a taxpayer employee may exclude the value of food and lodging received from his employer, if he receives it solely for the convenience of his employer and as a necessary incident of the proper performance of his duty. The meals and lodging exclusion has been formalized as 119 in the Internal Revenue Code tax code . ref cite web url http www.taxalmanac.org index.php Internal Revenue Code Sec. 119. Meals or lodging furnished for the convenience of the employer title TaxAlmanac Internal Revenue Code Sec. 119. Meals or lodging furnished for the convenience of the employer publisher TaxAlmanac, A Free Online Resource for Tax Professionals accessdate 2009 09 30 ref Background The petitioner managed hotels in Honolulu . He and his wife occupied a suite and received meals at and from the hotel, but did not report their value in his income. The Commissioner added 7,845 each year to gross income as compensation from Hawaiian Hotels, Ltd. Holding The Board heard the issue of whether the residence and meals at the hotel were compensation and therefore part of petitioner s gross income for which he could be taxed. The petitioner lived at the hotel solely because he could not otherwise perform the services required of him. The occupation of the premises was imposed upon him for the benefit of the employer. This is not to say ..., it must a condition of taking the job. References Reflist DEFAULTSORT Benaglia V. Commissioner Category ... more details
Infobox Court Case name Rowe v Electoral Commissioner court High Court of Australia image Australia coa.png date decided 6 August 2010 decision only, orders published 15 December 2010 full name Rowe & Anor v Electoral Commissioner & Anor citations 2010 HCA 46 15 December 2010 judges Robert French French CJ, William Gummow Gummow , Kenneth Hayne Hayne , Dyson Heydon Heydon , Susan Crennan Crennan , Susan Kiefel Kiefel and Virginia Bell Bell JJ prior actions none subsequent actions none opinions 4 3 The Electoral and Referendum Amendment Electoral Integrity and Other Measures Act 2006 Cth amendments restricting the enrolment of voters once an election has been called are invalid. small per French CJ, Gummow, Bell and Crennan JJ Hayne, Heydon and Kiefel JJ dissenting small Rowe v Electoral Commissioner 2010 is a High Court of Australia case dealing with the validity of Government of Australia Commonwealth legislation that sought to restrict the time in which a voter may seek to enrol in an election or alter their enrolment details after the writs for such an election have been issued by the Governor General of Australia Governor General . One of those provisions, s 102 4 , prevents the Electoral Commissioner from considering claims for enrolment lodged after 8 pm on the date of the issue of writs for an election for the australian House of Representatives House of Representatives or the Australian Senate Senate until after the close of polling. Another provision, s 102 4AA , prevents consideration of claims for transfer of enrolment from one divisional roll to another from 8 pm on the date of the close of the electoral roll rolls for an election until after the close of polling. A third provision, s 155, provides that the rolls close on the third working day after the date of the writs. Decision On 6 August 2010, the Court by majority ruled that such restrictions were invalid. ref Specifically, the Court declared that items 20, 24, 28, 41, 42, 43, 44, 45 and 52 of Schedule ... more details
Orphan date February 2009 Infobox Court Case name Davis v. Commissioner court United States Tax Court image Tax court.gif date decided July 3, 2002 full name James F. Davis and Dorothy A. Davis, Petitioners v. Commissioner of Internal Revenue, Respondent citations 119 T.C. 1 2002 judges Carolyn P. Chiechi prior actions subsequent actions opinions The Tax Court held that the right to receive future annual lottery payments does not fit the definition a capital asset per Internal Revenue Code I.R.C. 1221, and therefore the money received from Singer was ordinary income, and not capital gain. Davis v. Commissioner , 119 T.C. 1 2002 , was a United States Tax Court decision which closed the door on a potential loophole with regard to annuities and capital gains tax. ref http www.ustaxcourt.gov InOpHistoric Da5vis.TC.WPD.pdf M OpinHoldingDa5vis.TC.WPD Bot generated title ref The case affirmed that annual lottery annuities cannot be assigned and sold as capital assets. ref http www.investmentnews.com apps pbcs.dll article?AID 20020819 SUB 208190716 1 INIssueAlert04 Tax Watch Couple takes their lumps after winning lottery InvestmentNews Bot generated title ref Facts In 1991, James F. Davis won 13,580,000 in the California State Lottery s Super Lotto Plus game. As a result, Davis became entitled to receive 679,000 as yearly annuity, in 20 payments. The game did not yet offer a present value lump sum option. Normally, income derived from annuities are taxed as ordinary income. In 1997, in an apparent attempt to circumvent this tax treatment, Davis entered into an agreement with Singer Asset Finance Company, LLC Singer . The agreement called for Davis to assign a portion of his right to these annual payments to Singer, in exchange for a single payment of 1,040,000. In his 1997 income ... Davis s argument that Arkansas Best Corporation v. Commissioner effectively overruled a line of cases ... Bot generated title ref The Commissioner of the IRS determined this amount to be ordinary ... more details
Orphan date August 2009 Primary sources date December 2009 Turner v. Commissioner , T.C. Memo 1954 38 T.C. 1954 was an important Why date December 2009 United States Tax Court case, concerning the proper valuation for tax purposes of lottery winnings. Background Wins prize Turner won 2 first class steamship tickets from New York City to Buenos Aires on a radio call in show. His name had been selected by chance from a telephone book, he was called on the telephone on April 18, 1948 and was asked to name a song that was being played on a radio program. He gave the correct name of the song and then was given the opportunity to identify a second song and thus to compete for a grand prize. He correctly identified the second song and in consideration of his efforts was awarded a number of prizes, including two round trip first class steamship tickets for a cruise between New York City and Buenos Aires. The prize was to be one ticket if the winner was unmarried, but, if he was married, his wife was to receive a ticket also. The tickets were not transferable and were good only within one year on a sailing date approved by the agent of the steamship company. Exchanged prize Marie, his wife, was born in Brazil. The petitioners had two sons. Reginald negotiated with the agent of the steamship company, as a result of which he surrendered his rights to the two first class tickets, and upon payment of 12.50 received four round trip tourist steamship tickets between New York City and Rio de Janeiro . The petitioners and their two sons used those tickets in making a trip from New York City ..., under such circumstances, must arrive at some figure and has done so. Cf. Cohan v. Commissioner, 39 Fed. 2d 540. blockquote References Turner v. Commissioner, T.C. Memo 1954 38 T.C. 1954 DEFAULTSORT Turner V. Commissioner Category United States taxation and revenue case law Category 1954 in United ... worth of income. The Commissioner, in determining the deficiency, increased the income from this source ... more details
Encyclopedia
top
