Stone v. Lynch

BECTON, Judge.

We must decide in this case whether union strike benefits are taxable as income to the recipient under North Carolina law, or whether they qualify as a gift, thereby allowing the taxpayer to exclude them from taxable income. We reverse the trial court, and we hold that the benefits constitute a gift and that plaintiff taxpayers are entitled to a refund on income tax paid on strike benefits.

I

The Communications Workers of America (CWA) organized a local in early 1979 at plaintiff Rudolph Stone’s place of employment. 1 Plaintiff joined CWA in September, 1979, and several weeks…