Barker v. Commissioner
United States Tax Court
Trusts -- Accumulated Income -- Sec. 167, I. R. C. 1939. -- Petitioner when 21 years of age created an irrevocable trust to terminate after 14 years at which time the corpus and accumulated income were to be distributed to him. If he died before termination the corpus and accumulated income were to go to his wife and his issue; if none survived him, then to his father and mother who were co-trustees with an incorporated trust company.
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Trusts -- Accumulated Income -- Sec. 167, I. R. C. 1939. -- Petitioner when 21 years of age created an irrevocable trust to terminate after 14 years at which time the corpus and accumulated income were to be distributed to him. If he died before termination the corpus and accumulated income were to go to his wife and his issue; if none survived him, then to his father and mother who were co-trustees with an incorporated trust company. The trustees were to pay certain amounts of income to petitioner annually with the provision also that the trustees in their discretion could pay accumulated…
1Opinion of the Court
OPINION.
Tietjens, Judge:
In taxing the accumulated but undistributed income of the trust to petitioner the Commissioner places reliance on the broad terms of section 22 (a) and also on section 167.
On the facts of this case, we think the controversy is to be decided on the basis of section 167. That section provides that when any part of the income of a trust
is, or in the discretion of the grantor or of any person not having a substantial adverse interest in the disposition of such part of the income may be, held or accumulated for future distribution to the grantor; or
may, in the discretion of…
2Cases cited4 opinions
- Helvering v. EvansCourt of Appeals for the Third Circuit · 1942
- Trust under the Last Will & Testament of McDonald v. CommissionerUnited States Tax Court · 1953
- Commissioner v. WillsonCourt of Appeals for the Sixth Circuit · 1942
- Wenger v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1942
3Cited by3 opinions
- Paxton v. CommissionerUnited States Tax Court · 1972
- Barker v. CommissionerUnited States Tax Court · 1956
- Paxton v. CommissionerUnited States Tax Court · 1972