Johnson v. Commissioner
United States Tax Court
During 1973, petitioner's husband along with two other individuals was involved in a scheme to defraud the Federal Government by filing false income tax refund claims with the Internal Revenue Service. Held, under Texas law a portion of the income petitioner's husband derived from this illegal scheme is community property and, therefore, petitioner is taxable on one-half of such portion.
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During 1973, petitioner's husband along with two other individuals was involved in a scheme to defraud the Federal Government by filing false income tax refund claims with the Internal Revenue Service. Held, under Texas law a portion of the income petitioner's husband derived from this illegal scheme is community property and, therefore, petitioner is taxable on one-half of such portion. Held, further, petitioner is entitled to deduct under sec. 212(1), I.R.C. 1954, a portion of the legal fees paid in connection with her husband's unsuccessful defense of the criminal charges brought against…
1Opinion of the Court
Fay, Judge:
Respondent determined a deficiency in petitioner’s Federal income tax for the taxable year 1973 in the amount of $11,643. Concessions having been made, the only remaining issues for decision are:(1) Whether illegal income obtained by petitioner’s husband in a false Federal income tax refund scheme constitutes community property and, hence, income to the petitioner.(2) Whether petitioner is entitled to deduct under section 1621 or section 212 a portion of the legal fees paid to defend her husband against criminal charges brought as a result of his participation in the false refund…
2Cases cited33 opinions
- Aquilino v. United StatesSupreme Court of the United States · 1960
- James v. United StatesSupreme Court of the United States · 1961
- United States v. GilmoreSupreme Court of the United States · 1963
- Poe v. SeabornSupreme Court of the United States · 1930
- Trust Under the Will of Bingham v. CommissionerSupreme Court of the United States · 1945
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3Cited by33 opinions
- McKay v. CommissionerUnited States Tax Court · 1994
- Estate of Fulmer v. CommissionerUnited States Tax Court · 1984
- Bernal v. Comm'rUnited States Tax Court · 2003
- Roberts v. CommissionerUnited States Tax Court · 1987
- Needham v. United StatesDistrict Court, W.D. Oklahoma · 1983
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