Levine v. Commissioner
United States Tax Court
T, the majority stockholder and principal executive officer of X, a small family corporation, became ill in 1957 and received payments of $ 100 a week from X for a prolonged continuous period of over 5 or 6 years. X had no pension plan for employees and its other employee benefits were on a modest scale. It never gave sick pay to any other employees for any continuous period in excess of 2 weeks.
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T, the majority stockholder and principal executive officer of X, a small family corporation, became ill in 1957 and received payments of $ 100 a week from X for a prolonged continuous period of over 5 or 6 years. X had no pension plan for employees and its other employee benefits were on a modest scale. It never gave sick pay to any other employees for any continuous period in excess of 2 weeks. Held, the amounts received by T during 1960-1962 did not in fact represent bona fide sick pay for an employee but were paid to him because he was the majority stockholder; they are taxable to him as…
1Opinion of the Court
OPINION
Raum, Judge:
Samuel Levine was the majority stockholder and principal executive officer of Selco Supplies, Inc., a small family corporation. He underwent a cancer operation in September 1957, and on October 1, 1957, he and other officers of Selco held a meeting at his home at which it was voted that he “be allowed to draw sick pay for the duration of his illness,” and it was also voted that “anyone who might become ill be allowed to draw sick pay for the duration of their illness providing they are regular employees.” A limit of $100 per week was placed upon such “sick pay.” The…
2Cases cited5 opinions
- Alan B. Larkin v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1968
- Lang v. CommissionerUnited States Tax Court · 1963
- Kaufman v. CommissionerUnited States Tax Court · 1961
- Larkin v. CommissionerUnited States Tax Court · 1967
- Estate of Leo P. Kaufman, Deceased, Alph C. Kaufman, and Estate of Ida W. Kaufman, Deceased, Alph C. Kaufman v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1962
3Cited by7 opinions
- Akers v. CommissionerUnited States Tax Court · 1984
- Frazier v. CommissionerUnited States Tax Court · 1994
- Giberson v. CommissionerUnited States Tax Court · 1982
- John H. Kennedy, Inc. v. CommissionerUnited States Tax Court · 1977
- Levine v. CommissionerUnited States Tax Court · 1968
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