Johnson v. Commissioner
United States Tax Court
Petitioner, George W. Johnson, and three other individuals, who together constituted the sole officers, stockholders, and board of directors of a corporation, on October 14, 1949, received salary checks for services rendered during 1949 in the aggregate amount of $ 14,322.47, subject to an express restriction that the checks, as a group, would not be presented to the bank for payment until the recipients were authorized to do so by the president of the corporation at such…
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Petitioner, George W. Johnson, and three other individuals, who together constituted the sole officers, stockholders, and board of directors of a corporation, on October 14, 1949, received salary checks for services rendered during 1949 in the aggregate amount of $ 14,322.47, subject to an express restriction that the checks, as a group, would not be presented to the bank for payment until the recipients were authorized to do so by the president of the corporation at such time, in his discretion, as the cash position of the corporation warranted. The corporation did not have adequate funds…
1Opinion of the Court
OPINION.
Fisher, Judge:
The respondent has determined that the stun of $2,951.10 credited to petitioner’s salary account on the books of Dart-mont in 1949, but not paid in that year, was income constructively received by him in 1949. It is respondent’s position that the corporation had ample funds on deposit and other assets to have made payment on the salary checks in 1949, and that the directors, as the sole officers and stockholders, had the power to cash the salary checks at any time during the taxable year. Petitioner, on the other hand, maintains that the check in question was not…
2Cases cited2 opinions
- Dial v. CommissionerUnited States Tax Court · 1955
- Weil v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1949
3Cited by21 opinions
- Basila v. CommissionerUnited States Tax Court · 1961
- Young Door Co., Eastern Div. v. CommissionerUnited States Tax Court · 1963
- Hughes v. CommissionerUnited States Tax Court · 1964
- Jerome Castree Interiors, Inc. v. CommissionerUnited States Tax Court · 1975
- McKelvy v. United StatesUnited States Court of Claims · 1973
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