Smith v. Commissioner
United States Tax Court
1. Petitioner was employed as general manager of a department store for 10 years. His duties were practically nonexistent for the last half of the contract, but he continued as an employee until the expiration of the contract. Under the contract terms petitioner was entitled to a base salary plus additional compensation based on a percentage of net profits.
Read the full summary
1. Petitioner was employed as general manager of a department store for 10 years. His duties were practically nonexistent for the last half of the contract, but he continued as an employee until the expiration of the contract. Under the contract terms petitioner was entitled to a base salary plus additional compensation based on a percentage of net profits. Due to a dispute as to what constituted "net profits," petitioner did not receive the additional compensation for 1942, 1943, 1944, and 1945, until after he had instituted a lawsuit. The suit was settled and petitioner received a lump sum…
1Opinion of the Court
OPINION.
Rice, Judge:
The first issue is whether the $212,000 is “back pay” subject to the provisions of section 107 (d) of the Internal Revenue Code. Applicable portions are set forth in the margin.1
Respondent argues that subsequent to January 1940 petitioner performed no services for his employer and therefore that section 107 (d) is inapplicable. While it is true that section 107 (d) is subject to strict interpretation, Norbert J. Kenny, 4 T. C. 750, 754 (1945), we feel that respondent’s argument is incorrect. Petitioner was an employee of A. M. & A. under a contract running for 10 years…
Also in this document: Dissent.
2Cases cited10 opinions
- Schnitzer v. CommissionerUnited States Tax Court · 1949
- Dobkin v. CommissionerUnited States Tax Court · 1950
- Dallmeyer v. CommissionerUnited States Tax Court · 1950
- Campbell v. CommissionerUnited States Tax Court · 1948
- Janeway v. CommissionerUnited States Tax Court · 1943
5 more not listed; retrieve them via the Exa API.
3Cited by73 opinions
- Boissevain v. CommissionerUnited States Tax Court · 1951
- Towers v. CommissionerUnited States Tax Court · 1955
- Commissioner of Internal Revenue v. SmithCourt of Appeals for the Second Circuit · 1953
- Cotnam v. CommissionerUnited States Tax Court · 1957
- Estate of Palmer v. CommissionerUnited States Tax Court · 1951
68 more not listed; retrieve them via the Exa API.