Legal Opinion

Beggy v. Commissioner

United States Tax Court

Decided January 27, 1955No. Docket No. 50777PublishedCited by 11 opinions

Gift or Compensation for Services. -- A payment for past services made by a corporation voluntarily and without legal obligation to an employee in connection with his resignation was not a gift but compensation taxable as ordinary income.

1Opinion of the Court

OPINION.

Muedoce, Judge:

The Commissioner determined a deficiency of $5,744.30 in income tax of the petitioners for 1950. The only issue for decision is whether $26,368.48 paid by Mine Safety Appliances Company to John F. Beggy in 1950 represented a gift within the meaning of section 22 (b) (3) of the Internal Revenue Code and therefore was excludable from his income. The parties have filed a stipulation of facts with exhibits, all of which are adopted as findings of fact.

The petitioners are husband and wife and they filed a joint income tax return for 1950 with the collector of internal…

2Cases cited4 opinions

  1. Carragan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1952
  2. Willkie v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1942
  3. Poorman v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1942
  4. Nickelsburg v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1946

3Cited by11 opinions

  1. Martin v. CommissionerUnited States Tax Court · 1988
  2. Jackson v. CommissionerUnited States Tax Court · 1956
  3. John F. Beggy and Rose A. Beggy v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1955
  4. Slattery v. United StatesUnited States Court of Claims · 1988
  5. BURDETT v. COMMISSIONERUnited States Tax Court · 1992

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