Walker v. Commissioner
United States Tax Court
A railway company paid to one of its officers, who had served it for 4 1/2 years and resigned for reasons of health, a sum equivalent to 6 months' salary, which it called a "gift" to be paid in two equal installments "as a token of appreciation for his loyalty to the best interests of the Company during the period of his employment." The company charged the payments to operating expense, and deducted them on its income tax returns.
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A railway company paid to one of its officers, who had served it for 4 1/2 years and resigned for reasons of health, a sum equivalent to 6 months' salary, which it called a "gift" to be paid in two equal installments "as a token of appreciation for his loyalty to the best interests of the Company during the period of his employment." The company charged the payments to operating expense, and deducted them on its income tax returns. Held, that the amount received by the officer was "compensation" subject to income tax under section 22 (a) of the Internal Revenue Code (1939), and not a "gift"…
1Opinion of the Court
L. Gordon Walker and Elizabeth E. Walker, Petitioners, v. Commissioner of Internal Revenue, Respondent
Walker v. Commissioner
Docket No. 46177
United States Tax Court
25 T.C. 832; 1956 U.S. Tax Ct. LEXIS 291;
January 20, 1956, Filed
Decision will be entered for the respondent.
A railway company paid to one of its officers, who had served it for 4 1/2 years and resigned for reasons of health, a sum equivalent to 6 months' salary, which it called a "gift" to be paid in two equal installments "as a token of appreciation for his loyalty to the best interests of the Company during the period of his…
2Cases cited18 opinions
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- Bogardus v. CommissionerSupreme Court of the United States · 1937
- Noel v. ParrottCourt of Appeals for the Fourth Circuit · 1926
- Willkie v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1942
- Fisher v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1932
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