Ducros v. Commissioner
United States Tax Court
A corporation took out a policy for its benefit with a life insurance company naming its president as insured; the corporation to pay the premiums. The policy had a clause allowing the corporation to change the beneficiary at will. Securing the policy with such a clause was part of a plan to bestow the proceeds of the policy at maturity upon stockholders in proportion to their interest in the corporation.
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A corporation took out a policy for its benefit with a life insurance company naming its president as insured; the corporation to pay the premiums. The policy had a clause allowing the corporation to change the beneficiary at will. Securing the policy with such a clause was part of a plan to bestow the proceeds of the policy at maturity upon stockholders in proportion to their interest in the corporation. The corporation changed the beneficiary to one of the petitioners and upon the death of the president the insurance company paid direct to this petitioner. Held, such payment was not…
1Opinion of the Court
Mulronet, Judge:
Respondent determined a deficiency in the petitioners’ income tax for the year 1951 in the amount of $1,346.54 and addition to tax in the amount of $138.60. The issues are (1) whether the receipt of $5,705.91 in 1951, paid to petitioner Phyllis A. Ducros, as the beneficiary of a policy issued by a life insurance company on the life of Carlton L. Small, is excludible from gross income under section 22 (b) (1) (A);1 and (2) whether the petitioners are liable for addition to tax in the amount of $138.60 under section 294 (d) (1) (A) for failure to file a declaration of estimated…
2Cases cited4 opinions
- Warnock v. DavisSupreme Court of the United States · 1882
- Connecticut Mutual Life Insurance v. SchaeferSupreme Court of the United States · 1877
- United States v. Supplee-Biddle Hardware Co.Supreme Court of the United States · 1924
- Wilson v. Progressive Life Insurance CompanyCourt of Appeals of Georgia · 1940
3Cited by5 opinions
- Harrison v. CommissionerUnited States Tax Court · 1973
- Estate of Horne v. CommissionerUnited States Tax Court · 1975
- Ducros v. CommissionerUnited States Tax Court · 1958
- Estate of Horne v. CommissionerUnited States Tax Court · 1975
- Harrison v. CommissionerUnited States Tax Court · 1973