Kenny v. Commissioner
United States Tax Court
Petitioner's employer in 1937 was required to defer payment of part of the salaries of certain officers, including petitioner, as a condition to receiving a loan from R. F. C. The employer was obligated to pay the portion of annual salary credited to petitioner's salary account when the R. F. C. loan was repaid. Credits were made in 1938, 1939, and 1940 for deferred salary earned in those years.
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Petitioner's employer in 1937 was required to defer payment of part of the salaries of certain officers, including petitioner, as a condition to receiving a loan from R. F. C. The employer was obligated to pay the portion of annual salary credited to petitioner's salary account when the R. F. C. loan was repaid. Credits were made in 1938, 1939, and 1940 for deferred salary earned in those years. Petitioner received payment in 1941. Held, that $ 8,400 received by petitioner in 1941 constitutes "back pay" and the tax in 1941 is limited as prescribed in section 107 (d) (1), I. R. C. See section…
1Opinion of the Court
OPINION.
HaRROn, Judge:
Petitioner seeks to invoke the provisions of section 119 of the Revenue Act of 1943, amending section 107 of the Internal Revenue Code by adding a new provision, subsection (d), which defines “back pay” and prescribes how it shall be taxed.
Section 107 was added as a new section in the Internal Revenue Code by section 220 (a) of the Revenue Act of 1939, and was amended by section 139 (a) of the Revenue Act of 1942. With the further amend ment made by section 119 of the Revenue Act of 1943, section 107 is a special provision with four subsections (a) to (d), inclusive.…
2Cited by30 opinions
- Smith v. CommissionerUnited States Tax Court · 1951
- Langer's Estate v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1950
- Dean v. CommissionerUnited States Tax Court · 1948
- Stearns v. CommissionerUnited States Tax Court · 1950
- Wardall v. United StatesUnited States Court of Claims · 1953
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