Foster v. Commissioner
United States Board of Tax Appeals
Pursuant to an agreement to which the beneficiary of a testamentary trust was a party, distribution of funds in an estate was delayed and upon distribution the beneficiary received a lump sum designated "interest." Petitioner, as administratrix of the beneficiary, filed a request for prompt assessment.
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Pursuant to an agreement to which the beneficiary of a testamentary trust was a party, distribution of funds in an estate was delayed and upon distribution the beneficiary received a lump sum designated "interest." Petitioner, as administratrix of the beneficiary, filed a request for prompt assessment. Held, the sum received by the beneficiary was interest and as such was "properly includible" in the gross income of the beneficiary, and, since it was in excess of 25 percent of the amount reported in the return for 1936, section 275(c) of the Revenue Act of 1936 applies and thereby extends the…
1Opinion of the Court
OPINION.
Arundell:
We'find the facts as stipulated by the parties and set forth only those necessary to the decision of this case.
Respondent determined that petitioner is liable as transferee for a deficiency in income tax in the amount of $1,317.07 due from Abbie A. Sewell, deceased, for the calendar year 1936.
The issues are whether the sum of $10,302.20 received by petitioner’s transferor was income to her and, if so, whether the failure to include in her return this sum as gross income operates to suspend the statute of limitations.
Petitioner, a resident of Miami, Florida, is the transferee…
2Cases cited3 opinions
- Irwin v. GavitSupreme Court of the United States · 1925
- Anderson v. WilsonSupreme Court of the United States · 1933
- Hagan v. Commissioner's CourtSupreme Court of Alabama · 1909
3Cited by5 opinions
- George Slaff v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
- Foster’s Estate v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1942
- Dorzback v. CollisonDistrict Court, D. Delaware · 1950
- Bell v. CommissionerUnited States Tax Court · 1957
- Foster v. CommissionerUnited States Board of Tax Appeals · 1941