Benningfield v. Commissioner
United States Tax Court
On Dec. 25, 1979, P purported to assign or sell indefinitely "accounts receivable" representing his wages, to PTS, purportedly a trust. PTS purported to "resell" P's "accounts" to IDI, "requesting" that IDI contribute 90 percent or more of these accounts to "non-profit organizations." In 1979, P endorsed two paychecks from his employer to PTS.
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On Dec. 25, 1979, P purported to assign or sell indefinitely "accounts receivable" representing his wages, to PTS, purportedly a trust. PTS purported to "resell" P's "accounts" to IDI, "requesting" that IDI contribute 90 percent or more of these accounts to "non-profit organizations." In 1979, P endorsed two paychecks from his employer to PTS. The same day, C, purportedly a Canadian charitable trust, issued to P checks denominated as "gifts" and equaling 92 percent of the paychecks P had just endorsed to PTS. On his 1979 tax return, P excluded from income the full amount of the two paychecks…
1Opinion of the Court
Parker, Judge:
Respondent has determined the following Federal income tax deficiencies and additions to tax:
Taxpayer Year Deficiency Sec. 6653(a)1
Max Eugene Benningfield, Jr. 1975 $1,042 0
Max Eugene Benningfield, Jr. 1976 164 0
Max Eugene Benningfield, Jr., and Shelley Jean Benningfield 1977 1,041 0
Max Eugene Benningfield, Jr., and Shelley Jean Benningfield 1978 4,992 0
Max Eugene Benningfield, Jr., and Shelley Jean Benningfield 1979 6,784 $339
After numerious concessions,2 the issues remaining for determination are (1) whether a deduction or exclusion from gross income claimed in 1979 as a…
2Cases cited37 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Lucas v. EarlSupreme Court of the United States · 1930
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- Bixby v. CommissionerUnited States Tax Court · 1972
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3Cited by15 opinions
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- Janklow v. CommissionerUnited States Tax Court · 1988
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- Bartlett v. CommissionerUnited States Tax Court · 1984
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