O'Malley v. Commissioner
United States Tax Court
P was a trustee of the Teamsters' pension fund. P received no compensation from his trusteeship. P was also employed with a trucking company as director of labor relations. P was indicted for taking part in a conspiracy to bribe a U.S. Senator, using pension fund property to influence his vote on trucking deregulation legislation. The pension fund paid the legal fees P incurred in his unsuccessful defense of criminal prosecution.
Read the full summary
P was a trustee of the Teamsters' pension fund. P received no compensation from his trusteeship. P was also employed with a trucking company as director of labor relations. P was indicted for taking part in a conspiracy to bribe a U.S. Senator, using pension fund property to influence his vote on trucking deregulation legislation. The pension fund paid the legal fees P incurred in his unsuccessful defense of criminal prosecution. Held, the amount of the legal fees which the Pension Fund paid on P's behalf are includable in P's gross income. Held, further, P may deduct the legal fees as an…
1Opinion of the Court
RUWE, Judge:
Respondent determined deficiencies in petitioners’ 1981 and 1982 Federal income taxes in the amounts of $174,428.31 and $109,796.67, respectively. The issues for decision are: (1) Whether petitioner, Thomas O’Malley, received unreported income in the amounts of $266,280.55 and $212,212.34 for the taxable years 1981 and 1982, respectively, from the payment by Central States Pension Fund of his legal fees; (2) whether petitioner, Thomas O’Malley, may deduct, under sections 162(a)1 or 212(1), the legal expenses he incurred in connection with his unsuccessful defense in a criminal…
2Cases cited19 opinions
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- James v. United StatesSupreme Court of the United States · 1961
- United States v. GilmoreSupreme Court of the United States · 1963
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Commissioner v. TellierSupreme Court of the United States · 1966
14 more not listed; retrieve them via the Exa API.
3Cited by72 opinions
- McKay v. CommissionerUnited States Tax Court · 1994
- Johnson v. CommissionerUnited States Tax Court · 2000
- Biehl v. Comm'rUnited States Tax Court · 2002
- Thomas O'Malley v. Commissioner of Internal Revenue ServiceCourt of Appeals for the Seventh Circuit · 1992
- Young v. CommissionerUnited States Tax Court · 1999
67 more not listed; retrieve them via the Exa API.