Cremona v. Commissioner
United States Tax Court
The taxpayer was employed as an "administrator." In 1968, he engaged the services of a job-counseling organization for a flat fee of $ 1,500 to assist him in obtaining a better job. The taxpayer did not succeed in obtaining any offers of employment as a result of such services and remained employed at his old job. Held, the fee paid by the taxpayer is deductible as an ordinary and necessary business expense. Sec. 162(a), I.R.C. 1954.
1ConcurrenceDeeNNEN, J.
The opinion in this case, which was originally released as a Memorandum Opinion, was recalled for consideration by the entire Court when it was realized that it represented an extension of the doctrine adopted by the majority of this Court in David J. Primuth, 54 T.C. 374, Guy R. Motto, 54 T.C. 558, and Kenneth B. Kenfield, 54 T.C. 1197. Also see Carson J. Morris, T.C. Memo. 1967-251, affd. 423 F.2d 611 (C.A. 9), wherein this Court reached the opposite conclusion on similar facts.
In Primuth and Motto, the employment agency obtained new positions for the taxpayers, and the fees were held to be…
2Cases cited3 opinions
- Primuth v. CommissionerUnited States Tax Court · 1970
- Motto v. CommissionerUnited States Tax Court · 1970
- Carson J. Morris and Muriel F. Morris v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1970