Blanton v. Commissioner
United States Tax Court
Petitioner repaid to his corporate employer a portion of his salary, determined to be excessive by the Internal Revenue Service, pursuant to a contract entered into after petitioner received such salary.
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Petitioner repaid to his corporate employer a portion of his salary, determined to be excessive by the Internal Revenue Service, pursuant to a contract entered into after petitioner received such salary. Held, no portion of the foregoing repayment is deductible under section 1341, I.R.C. 1954, because petitioner's obligation to repay, if any, did not arise out of the circumstances, terms, or conditions of the original payment but, instead, arose out of a subsequent agreement between payee (petitioner) and payor (petitioner's employer).
1Opinion of the Court
Fat, Judge:
Respondent determined a deficiency in petitioners’ Federal income tax in the amount of $915.74 for the taxable calendar year 1963.
The sole issue presented for decision is whether petitioners are entitled to a deduction in the amount of $3,600 for repayment made by petitioner George L. Blanton to his corporate employer of amounts determined by the Internal Revenue Service to constitute excessive compensation. Petitioners did not contest respondent’s disallowance of another deduction in the amount of $135 taken in their 1963 Federal income tax return.
FINDINGS OF FACT
Some of the facts…
2Cases cited2 opinions
- Pike v. CommissionerUnited States Tax Court · 1965
- United States v. Ruben Simon, United States of America v. Meyer Simon, United States of America v. Morris SimonCourt of Appeals for the Sixth Circuit · 1960
3Cited by17 opinions
- Alcoa, Inc. v. United StatesCourt of Appeals for the Third Circuit · 2007
- Hope v. CommissionerUnited States Tax Court · 1971
- Karl and Hilda Hope, in Nos. 71-1993, 71-1994 v. Commissioner of Internal Revenue, in No. 71-1995Court of Appeals for the Third Circuit · 1973
- Dominion Resources, Incorporated v. United StatesCourt of Appeals for the Fourth Circuit · 2000
- William E. Bailey v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1985
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