Marvin H. And Kathleen G. Teget v. United States

BRIGHT, Circuit Judge.

Nicolson, Inc., formerly Gurney Seed and Nursery Co., in connection with a § 337 corporate liquidation (I.R.C. § 337), contributed $302,000 to a trust created in 1968 for the benefit of its executive employee, Marvin Teget, 1 in satisfaction of deferred compensation obligations owed the employee under an employment contract. The Government sought to assess and collect income taxes from employee Teget, contending that the contribution to the trust constituted gross income to the employee under I.R.C § 402(b). Teget paid the additional taxes claimed by the District…