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 ... interested act. Facts The Court was presented with two sets of facts. No. 376, Commissionerv. Duberstein ... 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 ... Bogardus v. Commissioner , ussc 302 34 1937 . This is a question of fact that must be determined on a case by case basis . Duberstein at 290. The body that levies the tax must conduct an objective inquiry ... 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 ... that levies the tax must conduct an objective inquiry that looks to the mainsprings of human conduct ..., upheld the Tax court s ruling with regard to Duberstein Duberstein s car was not a gift ... 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 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 ... 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 ... and employees compensation which is subject to Federal Income Tax or a gift that is exempt from taxes ... 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 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 ... operations is not an ordinary and necessary business expense. General Bancshares Corp. v. Commissioner , 326. F.2d, at 715. Holding The expenses incurred in a friendly takeover do not qualify for tax ... Grigsby first McGee authorlink coauthors Chinnis, Cabell, Jr. year 1992 month title Indopco v. Commissioner The Supreme Court Takes National Starch to the Cleaners journal The Tax Executive volume 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 deduction. The United States Tax Court Tax Court and the United States Court of Appeals for the Third Circuit Court of Appeals for the Third Circuit affirmed the Commissioner s decision. The courts ... doesn t last beyond the taxable year following the tax year the initial payment is made. See ... Court References Reflist 2 Further reading cite book title Tax stories An in depth look at ten leading federal income tax cases chapter The Story of INDOPCO What Went Wrong in the Capitalization v. Deduction Debate? last Bankman first Joseph authorlink editor Caron, Paul L. ed. year 2002 ... 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 ... 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 ... City Foundry v. Commissioner . In Spring City Foundry , the Court held that, for an accrual basis ... and completed income tax returns on a fiscal year accrual basis . Dancing lessons were offered under ..., there was no schedule of specific dates. The Commissioner included in gross income for the years ... 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 ... Tax stories An in depth look at ten leading federal income tax cases chapter The Story of Schlude The Origins of the Tax Financial Accounting GA A P last Osgood first Russell K. authorlink editor Caron ... more details
Infobox Court Case name Fairfax vCommissioner of Taxation court High Court of Australia image Australia coa.png date decided 2 December 1965 full name Fairfax v Federal Commissioner of Taxation citations http www.austlii.edu.au au cases cth high ct 114clr1.html 1965 114 CLR 1 judges Garfield Barwick Barwick CJ, Frank Kitto Kitto , Alan Taylor jurist Taylor , Douglas Menzies Menzies and Victor Windeyer Windeyer JJ prior actions none subsequent actions none opinions 5 0 Section 11 of the Income Tax and Social Services Contribution Assessment Act 1961 is valid under the taxation power small per Barwick CJ, Kitto, Taylor, Menzies and Windeyer JJ small Fairfax vCommissioner of Taxation 1965 114 Commonwealth Law Reports CLR 1 is a High Court of Australia case that considered the scope of the Section 51 ii of the Australian Constitution taxation power . Facts The Income Tax and Social Services Contribution Assessment Act 1964 dealt with income tax and social services . Section 11 of the Act exempted certain superannuation fund s from income tax if they invested in government securities. Fairfax was subject to the tax, and challenged it by arguing it was a law with respect to superannuation funds, and not an exercise of the taxation power. Decision Per Kitto J The Commonwealth law was in substance a law with respect to taxation. A tax does not cease to be valid because it regulates, discourages, or even definitely deters the activities taxed. The plaintiffs argued that if superannuation funds fully undertook the law, and invested in government securities, then the Section 11 provision would result in no taxation revenue for the government. The Court however thought the issue of raising revenue was a secondary concern. The law was still concerned with taxation because it imposed a taxation obligation. The fact that the purpose was to deter superannuation funds, did not preclude it from being a matter with respect to taxation. As s51 ii was a non purposive head of power, like ... more details
Infobox SCOTUS case Litigants Commissionerv. Banks ArgueDate November 1 ArgueYear 2004 DecideDate January 24 DecideYear 2005 FullName Commissioner of Internal Revenue br v. br John W. Banks II br Commissioner of Internal Revenue br v. br Sigitas J. Banaitis USVol 543 USPage 426 Citation 543 U.S. 426 Prior Subsequent Holding When a litigant s recovery constitutes income, the litigant s income includes ... Kennedy JoinMajority unanimous court NotParticipating Rehnquist LawsApplied Commissionerv. Banks , Case citation 543 U.S. 426 2005 , together with Commissionerv. Banaitis , was a case decided before ... to this Supreme Court ruling because of the Civil Rights Tax Relief in the American Jobs Creation Act of 2004 . ref http www.fulcruminquiry.com Contingency Fee Tax Trap.htm Avoiding a Contingency Fee Tax Trap Banaitis Commissioner Banks Bot generated title ref The Civil Rights Tax Relief amended Internal ... . Commissionerv. Banks is still precedent for those contingent fee arrangements not eligible for an above ... the Legal Battle, but at What Tax Cost to your Client Tax Consequences of Contingency Fee Arrangements Leading up to and after Commissionerv. Banks journal Baylor Law Review volume 57 issue pages 47 ... for Income tax in the United States federal income tax purposes . The Supreme Court held ..., a position upheld by the United States Tax Court . The United States Court of Appeals for the Sixth ... income tax purposes. Opinion of the Court The United States Supreme Court held that a taxpayer s income ... developments Successful plaintiffs may face an unintended and unfair tax result because of this ruling ... Minimum Tax AMT with larger awards. ref Id . at 432 ref Double taxation of the attorney fees ... may have little impact on future tax disputes involving substantially the same facts. After these cases ... 2006 month title Taxation of Contingent Attorney Fees Did the Supreme Court Correctly Decide Commissionerv. Banks ? journal Northern Kentucky Law Review volume 33 issue pages 115 issn 01988549 url ... more details
Infobox SCOTUS case Litigants Crane v. Commissioner ArgueDate December 11 ArgueYear 1946 DecideDate April 14 DecideYear 1947 FullName Crane v. Commissioner of Internal Revenue USVol 331 USPage 1 Citation ... JoinDissent Frankfurter, Douglas LawsApplied wikisource Crane v. Commissioner of Internal Revenue Crane v. Commissioner , 331 U.S. 1 1947 , was a case heard before the United States Supreme Court concerning the value, for tax purposes, of Inheritance inherited property with a Nonrecourse debt nonrecourse ... Continues&mdash Tufts v. Commissioner journal Chicago Kent Law Review volume 59 issue pages 731 issn ... stone of most tax shelters. Justice Fred M. Vinson wrote the opinion. Facts Petitioner, Crane, was the sole ... tax purposes at a value equal to the mortgage encumbrance. Six years later, with foreclosure ... argued that the amount she realized on the sale of the building was her net cash received 2,500. The Commissioner of Internal Revenue Commissioner of the IRS claimed that the property inherited by Crane ... allowed depreciation deduction s in excess of 25,000 on the building. Correspondingly, the Commissioner ... The Court first sided with the Commissioner, agreeing with its construction of the relevant statutory ... the doctrine of U.S. income tax law that a seller of property subject to a nonrecourse debt as opposed ... property encumbered by debt is sold, the tax consequences of the passing of the debt have a significant effect on the overall tax consequences of the sale. For example, in this case, a taxpayer who ... by the lender, and possibly of realizing the interim tax benefit associated with increased depreciation ... Economic Benefit Rule. That reasoning was turned on its head 36 years later in the case Commissionerv. Tufts , 461 U.S. 300 1983 , which addressed the situation that Crane had left unresolved. See also ... Boris I. authorlink coauthors year 1978 month title Tax Shelters, Nonrecourse Debt, and the Crane Case journal Tax Law Review volume 33 issue pages 277 issn 00400041 url accessdate quote cite journal ... 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 ... 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 ... income of the taxpayer. Dissent It is well settled in our income tax law that that personal ... case law Category United States Tax Court cases Category 1962 in United States case law ... more details
orphan date December 2007 Pevsner v. Commissioner , 628 F.2d 467 5th Cir.1980 is a United States Taxation in the United States federal income tax case before the United States Court of Appeals for the Fifth Circuit Fifth Circuit . It dealt with the issue of whether clothes purchased solely for use at work could be treated as a Internal Revenue Code Section 162 a business expense deduction on a taxpayer ... Donnelly v. Commissioner, 262 F.2d 411, 412 2d Cir. 1959 . ref The court held that the question ... the subjective test employed by the tax court below. The court justified an objective test by citing cases from other circuits. ref Specifically, the court cited Stiner v. United States, 524 F.2d 640, 641 10th Cir. 1975 and Donnelly v. Commissioner at 412. ref The court also endorsed an objective ... v. Commissioner Benaglia personal benefit but lack of personal choice . Commissioner s goal was probably ... to meet these requirements, and subsequently deducted that amount from her 1975 federal income tax return as an ordinary and necessary business expense. Tax Court Ruling In the United States Tax Court tax court , the Commissioner argued that the clothing was suitable for general or personal wear ref Pevsner v. Commissioner, 628 F.2d 467, 470 5th Cir. 1980 . ref and should therefore not be deductible. Pevsner argued and the commissioner stipulated that she has never worn the clothing outside of work ... The tax court ruled that the test should be subjective to the taxpayer, and allowed the deduction on the grounds ... tax consequences depending upon the particular manager s lifestyle and socio economic level. ref Pevsner at 471. ref The court wished to avoid such a result. Tax Code The applicable sections of the Tax code Tax Code are 162 and 262. These sections must always be looked at together, because ... being inherently personal, it seems that the Tax Code cuts against the argument of allowing a deduction ... outside of work would not be able to deduct the suit on his or her tax return. Courts will find ... 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 ... v. Commissioner , 47 T.C. 429 T.C. 1967 . ref Whether the value of the use of the 1962 Ford Thunderbird ... 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 .... 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 ... sold the vehicle and reported this sale on his 1962 Federal income tax return. ref name Hornung431 However, he did not include the fair market value of the car in his tax return for 1962 or any ... both that the Corvette was a gift and therefore exempt from federal income tax, and alternatively ... tax in the year of 1962. ref name Hornung433 The court first addressed Hornung s second argument ... to. ref name Hornung435 Based on the above, the Tax Court held that the constructive receipt doctrine was inapplicable and the Corvette was received by Hornung for income tax purposes in 1962. ref name ... more details
Orphan date December 2010 Cowden v. Commissioner , 289 F.2d 20 5th Cir. 1961 , outlined the factors used to determine whether something received is a cash equivalent, in other words, whether something received is taxable when it was received or when it was assigned. The court observed two main doctrines in determining when something is taxable. The court relied on the doctrines of constructive receipt and cash equivalence while reiterating that substance rather than form should control income tax laws. History Empty section date June 2008 Background The taxpayers made a contract for oil and gas royalty payments with bonuses payable in two subsequent years. They next signed these contracts over to a bank reporting the amounts received as long term capital gains. The Commissioner disagreed as to their designation making them taxable as capital gains. Procedural History The Commissioner found the bonus payments to be taxable at the time they were created and assigned to the extent of their fair market value subject to depletion, computed by applying a four percent discount. The Tax Court found the bonus payments to be taxable at their full face value in the year of the agreement and at ordinary income rates no depletion . The taxpayer appeals this judgment. Decision Previous case law seemed to imply that only obligations represented by negotiable instruments were cash equivalent. The court rejects this argument, that no obligation can be found to be a cash equivalent unless there is a negotiable instrument, as too unrealistic and formalistic. In addition, the court found that a promissory note is not necessarily a cash equivalent. The court then identified the following factors ... Cowden V. Commissioner Category United States Court of Appeals for the Fifth Circuit cases Category United States Tax Court cases Category 1961 in United States case law Category Legal articles ... section date June 2008 See also Tax accounting Further reading Donaldson, Samuel A., Federal Income ... more details
orphan date January 2010 Infobox SCOTUS case Litigants Commissionerv. LoBue ArgueDate May 6 ArgueYear 1956 DecideDate May 28 DecideYear 1956 FullName Commissionerv. LoBue USVol 351 USPage 243 Citation Prior 223 F.2d 367 reversed and remanded Subsequent Holding SCOTUS 1955 1956 Majority Black JoinMajority Warren, Reed, Frankfurter, Douglas, Clark, Minton Concurrence Frankfurter JoinConcurrence Clark Concurrence Dissent Harlan JoinConcurrence Dissent Burton LawsApplied Internal Revenue Code of 1939 Commissionerv. LoBue , ussc 351 243 1956 was an income tax case before the United States Supreme Court . Background Facts Respondent s company offered stock options to its employees based on their performance and continued employment. Respondent exercised the options offered. In recognition of his contribution and efforts in making the operation of the Company successful, a corporation gave an employee options to purchase stock in the corporation. The options were nontransferable and were contingent upon continued employment. After some time had elapsed and the value of the shares had increased ... caselaw source case Commissionerv. LoBue , 351 U.S. 243 1956 findlaw http laws.findlaw.com us 351 .... Tax return The employee did not report as taxable income any of the gain resulting from the exercise of the option Commissioner of Internal Revenue The Internal Revenue Service levied a deficiency assessment against him. Tax court Respondent appealed and the Tax Court held that the options were ... and they were not taxable. Third Circuit The Third Circuit affirmed a Tax Court decision that found ... Revenue Code of 1939, as amended, Congress intended to tax all gains except those specifically ... On remand, the Tax Court may consider the question, not previously passed on, whether delivery of a promissory ... before the Tax Court or the Court of Appeals, the majority had erred in departing from the general rule whereby the Supreme Court abstains from passing on such an issue in a tax case when that issue was not raised ... more details
Orphan date February 2009 no footnotes date December 2010 Simon v. Commissioner , 68 F.3d 41 1995 , was a decision by the Second Circuit of the United States Court of Appeals relating to the deductibility of expensive items or tools that may increase in value as a collectible but decrease in value if used in the course of a business or trade. Background The plaintiff s in this case are Richard and Fiona Simon. The Simons are two full time professional violin violinist s who perform with the New York Philharmonic Orchestra . In 1985, the Simons purchased two bows made by Fran ois Tourte in the 19th Century, one for US dollar 30,000 and the second for 21,500, both regularly used. In 1989, the Simons claimed a 6,300 and 4,515 depreciation deduction on the first and second bow respectively in their tax report. The basis for this deduction was the under 167 of the Internal Revenue Code US Tax Code as calculated based on 168 of the US Tax Code. The TaxCommissioner objected to this deduction ... case&no 944237 Full Text of Opinion, Findlaw DEFAULTSORT Simon VCommissioner Category United States taxation and revenue case law Category United States Tax Court cases Category 1994 in United States ... for tax purposes in 1985 it had a value of 35,000, but in 1990 it had risen to 45,000. The value of the second bow increased as well from 25,000 to 35,000. Because of these increases in value, the Commissioner ... cost recovery system for the year in issue. Decision The Tax Court determined that the Simons deduction for the depreciation depreciated value of the violins was proper for the 1989 tax year under 168 of the Tax Code. The Majority opinion majority of the court agreed that the deduction should be allowed ... of the asset through use. Prior to the passage of the Economic Recovery Tax Act of 1981 ERTA , the depreciation ... dissent asserted that the majority decision gives an improper tax shelter for musicians. They state ... useful life. Significance The court found that 168 of the Tax Code does not prevent a taxpayer ... more details
Infobox SCOTUS case Litigants Commissionerv. Groetzinger ArgueDate December 8 ArgueYear 1986 DecideDate February 24 DecideYear 1987 FullName Commissioner of Internal Revenue v. Groetzinger USVol 480 USPage 23 Citation Prior Subsequent Holding Under the terms of 162 a , tax deductions should be granted for all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business for tax purposes. SCOTUS 1986 1987 Majority Blackmun JoinMajority Brennan, Marshall, Powell, Stevens, O Connor Dissent White JoinDissent Rehnquist, Scalia LawsApplied Commissionerv. Groetzinger , ussc 480 23 1987 is a decision of the Supreme Court of the United States , which addressed the issue of what qualifies as being either a trade or business under Section 162 a of the Internal Revenue Code. ref name first 480 U.S. 23 1987 . ref ref 26 U.S. Code 162 a . ref Under the terms of 162 a , tax deductions should be granted for all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business for tax purposes. ref name id Id. ref However, the term trade or Business is not defined anywhere in the Internal Revenue Code. ref name Donaldson2007p223 See Donaldson 2007 , p. 223. ref The case of Commissionerv. Groetzinger examined what is required for an activity to rise to the level of a trade or business for tax purposes. The particular question presented in this case was whether a full time gambling gambler who made wages for his own account was engaged in a trade or business. Holding In the absence of an all purpose definition by statute or regulation, the Court decided not to create a specific test to determine ... 2007 Commissionerv. Groetzinger explains that in deciding whether an activity is a trade or business ... scripts getcase.pl?navby CASE&court US&vol 480&page 23 COMMISSIONERv. GROETZINGER on FindLaw ... 23, 24. ref He had no other type of employment. ref name id In the tax year at issue in the case, the taxpayer ... 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 ..., 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 ... in the amount of 1,400. Tax return issues In their joint return for 1948 with the collector of internal ... worth of income. The Commissioner, in determining the deficiency, increased the income from this source .... Probably the petitioners could have refused the tickets and avoided the tax problem. Nevertheless ... more details
SCOTUSCase Litigants Gitlitz v. Commissioner ArgueDate October 2 ArgueYear 2000 DecideDate January 9 DecideYear 2001 FullName David A. Gitlitz, ex ux., et al. v. Commissioner of Internal Revenue USVol 531 USPage 206 Citation 531 U.S. 206 2001 Prior On Writ of Certiorari to the United States Court of Appeals for the Tenth Circuit Subsequent Holding The Internal Revenue Code permits taxpayers to increase bases in their S corporation stock by the amount of an S corporation s discharge of indebtedness excluded from gross income and the increase occurs before taxpayers are required to reduce the S corporation s tax attributes. SCOTUS 1994 2005 Majority Thomas JoinMajority C.J. Rehnquist, O Connor, Kennedy, Scalia, Stevens, Souter, Ginsburg Concurrence JoinConcurrence Dissent Breyer JoinDissent Dissent2 Dissent3 LawsApplied Internal Revenue Code Gitlitz v. Commissioner , http scholar.google.com scholar case?case 16783263203995134056&hl en&as sdt 2&as vis 1&oi scholarr 531 U.S. 206 2001 , was a Supreme Court of the United States United States Supreme Court case decided in 2001. The case concerned a technical question of tax law dealing with the tax attributes of an S corporation . Background In 1991, P. D. W. & A., Inc., an insolvent corporation taxed under Subchapter S, excluded its entire ... www.oyez.org cases 2000 2009 2000 2000 99 1295 opinion DEFAULTSORT Gitlitz V. Commissioner Category ... and other shareholders were assessed tax deficiencies because they used the untaxed discharge of indebtedness ..., the Tax Court held that Gitlitz could not use the S corporation s untaxed discharge of indebtedness ... held that the discharge of indebtedness amount first had to be used to reduce certain tax attributes ... s stock and that pass through is performed before the reduction of an S corporation s tax attributes ... ceases to be included in gross income. In order to determine the tax imposed, an S corporation shareholder ... case Glover v. United States , 531 U.S. 206 2001 findlaw http laws.findlaw.com us 531 206.html justia ... more details
Orphan date February 2009 Carpenter v. Commissioner , T.C. Memo 1966 228 1966 was a case decided by the United States Tax Court . ref Carpenter v. Commissioner, T.C. Memo 1966 228 1966 . ref Carpenter v. Commissioner addressed the issue of whether a husband and wife could deduct the aggregate fair market value of the wife s engagement ring from their income tax return, as a casualty loss under 165 a and c 3 of the Internal Revenue Code of 1954 , after the husband inadvertently dropped the ring in their garbage disposal. Facts The petitioners were Nancy Carpenter and William Carpenter. During 1962, Nancy owned a diamond engagement ring worth 1,010. One day, in the year 1962, Nancy placed the ring in a water glass of ammonia for purposes of cleaning the ring. Nancy then left the glass, with the ring inside, next to her kitchen sink. Later that day, William Carpenter was washing dishes, and William inadvertently picked up the glass and emptied its contents down the sink drain. William was unaware that the ring was in the glass. William proceeded to run the garbage disposal , which ultimately damaged Nancy s ring. The damaged ring was recovered from the garbage disposal and was taken to a jeweler for an appraisal. Immediately before the ring was dropped into the garbage disposal it had an aggregate fair market value of 1,010. The total aggregate fair market value of the ring immediately after being placed in the garbage disposal was 30. Subsequently, William purchased a ring for 169.50 and gave the ring to Nancy. The petitioners deducted 1,010 from their income tax return as a casualty loss. ref Id. ref Respondent s position Nancy did not suffer a casualty loss within the meaning ... of Nancy s engagement ring from their income tax return as a casualty loss under 165 a and c 3 of the Internal ... in deducting the aggregate fair market value of the ring from their income tax return as a casualty ... United States Tax Court cases Category 1966 in United States case law ... 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
The United States Tax Court decided two cases, both titled Veit v. Commissioner , in 1947 and 1949. ref name 8tc809 8 T.C. 809 1947 ref ref name 8tcm919 8 T.C.M. 919 1949 . ref These cases deal with the doctrine of constructive receipt . ref name 8tc809 ref name 8tcm919 In both cases, the taxpayer was an executive vice president of a corporation. ref name 8tc809 He was entitled to a fixed salary plus a bonus of 10 of the corporation s profits for the years 1939 and 1940, with the bonus to be paid in 1941. ref name 8tc809 However, his contract was revised in November 1940 to provide that the bonus from the 1939 profits would be paid in 1941, and the bonus from the 1940 profits would be paid in 1942. ref name 8tc809 In Veit I , the first of the two cases, the IRS objected to the new contract, claiming that the bonus from the 1940 profits was constructively received in 1941 and thus should have been included as part of the taxpayer s gross income for 1941, rather than 1942. ref name 8tc809 The Tax Court disagreed, finding that the November 1940 agreement was an arm s length business transaction . . . mutually profitable to both the corporation and the taxpayer. ref name 8tc809 Only if deferral of the 1940 bonus were a mere subterfuge and sham to allow the taxpayer to postpone paying income tax on the bonus could the court have found constructive receipt, it said, and there was no evidence of such intent. ref name 8tc809 In fact, it was apparent that deferral was a common practice for this corporation, and it was the corporation s idea, not the taxpayer s. ref name 8tc809 The court found for the taxpayer. ref name 8tc809 At issue in Veit II was a further agreement, entered into in December 1941, allowing the 1940 bonus to be paid in five equal installments annually ... Veit V. Commissioner Category United States taxation and revenue case law Category United States Tax ... of the payment, and again, the Tax Court found for the taxpayer. ref name 8tcm919 The deferral ... more details
Zaninovich v. Commissioner, 616 F.2d 429 9th Cir. 1980 , is a Taxation in the United States United States court case about the deductibility of advance payments for tax purposes. Issue presented Whether a rental payment by a cash basis taxpayer for a lease year that extended eleven months beyond the year of payment is fully deductible in the year of payment as an ordinary and necessary business expense or must be deducted on a prorated basis as a capital expenditure. Facts Martin and Vincent Zaninovich were partners in a farming business in San Joaquin Valley in California and used the cash method of accounting cash basis method of accounting . The partnership entered into a lease of farm land from December 1, 1973 to November 30, 1993. Yearly rent of 27,000 for the period running December 1 to November 30 was payable on December 20 of each lease year. On December 20, 1973, the partnership paid 27,000 in rent for the lease year running December 1, 1973 to November 30, 1974. The partnership deducted this entire amount on its return for the taxable year 1973. The TaxCommissioner disallowed 24,934 of the 27,000 payment the portion of the rent payment attributed to the eleven months rental period that fell in 1974. The United States Tax Court upheld this ruling. The 9th Circuit reversed. On appeal, the court concluded that the test for determining if this rental prepayment could be fully deducted during the actual payment year thus whether the payment was a deductible expense or a capital expenditure depended on whether or not eleven months is substantially beyond the taxable year. The court decided to adopt the one year rule applied by several circuits in distinguishing between currently deductible expenses and capital expenditures having a useful life extending substantially beyond the tax year. Under the one year rule , an expenditure is treated as a capital expenditure ... for the preceding year s payment that covered the rental period in the current tax year January November ... more details
In Jenkins v. Commissioner , T.C. Memo 1983 667 U.S. Tax Court Memos 1983 , the U.S. Tax Court held that the payments Conway Twitty , a legendary country singer, made to investors in a defunct restaurant business known as Twitty Burger, Inc. were deductible under 162 as ordinary and necessary business expenses ref Internal Revenue Code 162. ref of petitioner s business as a country music performer. Facts The petitioner , Harold L. Jenkins, was a well known country music singer who was commonly known by his stage name of Conway Twitty . Conway had been a musical performer since the 1950s, but it was not until the late 1960s that Conway became well established in the country music industry. ref Jenkins v. Commissioner , T.C. Memo 1983 667 U.S. Tax Court Memos 1983 at 4. ref By mid 1970, Conway Twitty had 43 Number 1 hit record s. ref Id. ref In 1968, Twitty Burger, Inc. was formed by Conway, along with approximately 75 friends and business associates who invested money in Twitty Burger for the operation of Twitty Burger Fast Food Restaurants. ref Id. at 6. ref Late in 1970, Twitty Burger began to encounter financial difficulties and nearly every Twitty Burger restaurant was closed by 1971. ref ID. at 9. ref Although he had no assets with which to pay the debentures, Conway decided to repay the investors the amount of their investment s with future earnings. ref Id. ref On his 1973 and 1974 Federal income tax returns, Conway deducted these total amounts, 92,892.46 and 3,600, respectively ... and necessary business expense s of his business as a country music performer. Lohrke v. Commissioner , 48 T.C. 679 1967 , a landmark Tax Court case, established a two part test to determine ... Tax Court was required to ascertain the purpose or motive of the taxpayer in making the payments ... these deductions Goes the argument of the Commissioner The payments must be ordinary and necessary ... date January 2011 reflist Category United States Tax Court cases Category 1983 in United States case ... 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 ... 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 ... to deduct these payments on their Federal Income Tax returns under the charitable contribution deduction ... in IRC 170 c . When the tax bill was enacted in 1954, United States Congress Congress distinguished ... 105 case.html UNITED STATES V. AMER. BAR ENDOWMENT, 477 U. S. 105 1986 US Supreme Court Cases from Justia ... more details
Merge North Dakota State TaxCommissioner date May 2009 Image ndtax logo.PNG thumb 200px right The Office of State TaxCommissioner is a North Dakota state government agency responsible for licensing alcoholic beverage wholesalers , farm wineries , microbrew pubs, and out of state direct shippers, and all suppliers selling or shipping alcoholic beverages to liquor and beer wholesalers in North Dakota and for taxing alcoholic beverage wholesalers, farm wineries, microbrew pubs, and out of state direct shippers. Responsibility for licensing alcoholic beverage retail businesses lies with the state North Dakota Attorney General Attorney General . US Alcohol Category State alcohol agencies of the United States Category Government of North Dakota NorthDakota stub ... more details
orphan date December 2007 unreferenced date December 2007 Estate of Rockefeller v. Commissioner , 762 F.2d 264 2d Cir. 1985 , was a case in which the United States Court of Appeals for the Second Circuit held that section 162 a of the Internal Revenue Code only allows deductions against income for expenses that occur while carrying on a trade or business. Facts of the case Nelson Rockefeller had incurred 550,159.78 worth of legal fees and services with regard to his 1974 vice presidential confirmation hearings. Mr. Rockefeller then claimed a 63,275 deduction on his 1974 Tax return United States income tax return , which was the amount of his salary as vice president. Determination of the court The 2nd Circuit affirmed the Tax Courts ruling that the deductions were not allowed under IRC section 162. The Court essentially compared Rockefeller s past job as List of Governors of New York Governor of New York with his position as Vice President of the United States Vice President and found that the two positions did not constitute the same trade or business. Mr. Rockefeller s estate argued that his trade or business was that of public service, but there was no authority that supported such a broad interpretation. Thus, the legal and consulting fees were not incurred in carrying out a trade or business, but in anticipation of doing so. Essentially, the court ruled that the expenses could not be deducted because Rockefeller was not yet carrying on the business of being Vice President. Category United States taxation and revenue case law Category United States Court of Appeals for the Second Circuit cases Category Legal articles without infoboxes ... more details
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