Edward W. Boucher and Gloria D. Boucher v. Commissioner of Internal Revenue

Edward W. Boucher, a life insurance agent, and his wife appeal from a decision of the Tax Court, 77 T.C. 214 (1981), holding that Boucher gave insurance “premium discounts” to his customers during 1974 and 1975 in violation of the “rebate” statute of the State of Washington; that the statute was “generally enforced” within the meaning of 26 U.S.C. (I.R.C.1954) § 162(c)(2); and that the premium discounts accordingly were not deductible as business expenses under § 162(a).

In Alex v. C.I.R., 628 F.2d 1222 (9 Cir. 1980), this court affirmed a similar holding of the Tax Court construing a…