McCormack v. Commissioner
United States Tax Court
P, an attorney, received $30,000 in 1980 as compensation for legal services to be rendered over the next 2 years. P prorated the amount over 2 years and reported the amount allegedly earned each week. Held: (1) The $30,000 was received as compensation for future services and not as a loan to be forgiven at a weekly rate over 2 years. (2) The entire $30,000 was income to P when received in 1980 under the claim of right doctrine.
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P, an attorney, received $30,000 in 1980 as compensation for legal services to be rendered over the next 2 years. P prorated the amount over 2 years and reported the amount allegedly earned each week. Held: (1) The $30,000 was received as compensation for future services and not as a loan to be forgiven at a weekly rate over 2 years. (2) The entire $30,000 was income to P when received in 1980 under the claim of right doctrine. (3) P was an employee and not liable for selfemployment tax. (4) P is subject to the addition to tax for negligence under sec. 6653(a), I.R.C. 1954.
1Opinion of the Court
MARK A. McCORMACK, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
McCormack v. Commissioner
Docket No. 21869-84.
United States Tax Court
T.C. Memo 1987-11; 1987 Tax Ct. Memo LEXIS 11; 52 T.C.M. (CCH) 1321; T.C.M. (RIA) 87011;
January 6, 1987.
P, an attorney, received $30,000 in 1980 as compensation for legal services to be rendered over the next 2 years. P prorated the amount over 2 years and reported the amount allegedly earned each week.
Held: (1) The $30,000 was received as compensation for future services and not as a loan to be forgiven at a weekly rate over 2 years.(2) The entire…
2Cases cited25 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Automobile Club of Mich. v. CommissionerSupreme Court of the United States · 1957
- James v. United StatesSupreme Court of the United States · 1961
- Beaver v. CommissionerUnited States Tax Court · 1970
20 more not listed; retrieve them via the Exa API.
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