O'Brien v. Commissioner
United States Tax Court
In applying section 1303, I.R.C. 1954, in respect of an award of back pay, pertinent legal expenses are deductible in full in the year the award was received, and may not be prorated over earlier years; section 1303 must be applied to the full amount of the award, undiminished by such legal expenses. Weldon D. Smith, 17 T.C. 135, reversed on another issue 203 F. 2d 310 (C.A. 2), followed.
1Opinion of the Court
OPINION.
Raum, Judge:
1. The Commissioner’s deficiency notice was based in large part upon his determination that the $16,173.05 awarded to petitioner in 1957 did not qualify as “back pay” within the meaning of section 1303 of the Internal Bevenue Code of 1954.1 However, this is no longer in issue, for the Commissioner has since conceded that petitioner is entitled to relief under section 1303. There remains, nevertheless, the question as to the proper method of applying these provisions.
The Commissioner insists that the entire $16,173.05 recovery is to be spread back among the years 1952-1955,…
2Cases cited9 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Helvering v. HorstSupreme Court of the United States · 1940
- Helvering v. EubankSupreme Court of the United States · 1941
- Ethel West Cotnam v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1959
- Commissioner of Internal Revenue v. SmithCourt of Appeals for the Second Circuit · 1953
4 more not listed; retrieve them via the Exa API.
3Cited by30 opinions
- Commissioner v. BanksSupreme Court of the United States · 2005
- Srivastava v. CommissionerCourt of Appeals for the Fifth Circuit · 2000
- Kenseth v. CommissionerUnited States Tax Court · 2000
- Reffett v. CommissionerUnited States Tax Court · 1963
- John W. Banks, II v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 2003
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