Warren G. Wheeler, Jr., Jean M. Wheeler, James J. McLaughlin Jr., and Mary K. McLaughlin v. The United States

FRIEDMAN, Circuit Judge.

This is an appeal from a judgment of the United States Claims Court dismissing the appellants’ tax refund suits covering federal income taxes for the taxable years 1975 and 1976. The Claims Court held that amounts paid by an employer’s educational benefits trust to the appellants’ children for college expenses were properly includible in the appellants’ gross income. We affirm.

I

The appellants Mr. Wheeler and Mr. McLaughlin were employed by the South Bend Tribune Corporation (South Bend) during the years in issue. Mr. Wheeler was executive vice president, and Mr.…