Sedlack v. Commissioner of Internal Revenue

MAJOR, Chief Judge.

Albert L. Sedlack was employed by Bur-son Knitting Company (sometimes referred to as Burson or the company) in 1928, and continued in such employment until his death on November 9, 1946. In October 1945, the company authorized the payment to him of $18,000, $12,000 being paid in 1945 and $6,000 in 1946, which ¡payments were in addition to his regular salary. Sedlack and his wife Elsie were on the cash basis of accounting for tax purposes. In their joint income tax returns for such years they reported the payments thus received by Sedlack as back pay to be allocated over the…