Williams v. Commissioner
United States Tax Court
Petitioner on May 5, 1951, received an unsecured, non-interest-bearing promissory note, payable 240 days thereafter, as evidence of the indebtedness of the maker. At the time of issuance of the note, the maker was without funds. Upon receipt of the note, petitioner attempted on 10 or 15 occasions to sell it, without success. Held, the note was not the equivalent of cash in 1951 and did not constitute income taxable to petitioners in that year.
1Opinion of the Court
Withey, Judge:
The respondent determined a deficiency in petitioners’ income tax for 1951 and additions to tax for that year under sections 291 (a) and 294 (d) (1) (A) and (d) (2) of the Internal Revenue Code of 1939 as follows:
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The sole issue presented for our decision is the correctness of the respondent’s action in determining that a promissory note received by petitioner Jay A. Williams during 1951 constituted income taxable to petitioners in that year.
FINDINGS OP PACT.
Some of the facts have been stipulated and are found accordingly.
Petitioners, husband and wife, residing in…
2Cases cited6 opinions
- A. & A. Tool & Supply Co. v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1950
- Dial v. CommissionerUnited States Tax Court · 1955
- Capitol-Barg Dry Cleaning Co. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1942
- Wright-Bernet v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1949
- Schlemmer v. United StatesCourt of Appeals for the Second Circuit · 1938
1 more not listed; retrieve them via the Exa API.
3Cited by41 opinions
- Marcello v. CommissionerUnited States Tax Court · 1964
- Borg v. CommissionerUnited States Tax Court · 1968
- Burr Oaks Corp. v. CommissionerUnited States Tax Court · 1965
- Kniffen v. CommissionerUnited States Tax Court · 1962
- Campbell County State Bank, Inc. v. CommissionerUnited States Tax Court · 1961
36 more not listed; retrieve them via the Exa API.