Marvin E. Jensen v. United States

WISDOM, Circuit Judge:

In this refund suit Marvin Jensen seeks to recover $1,400 in income taxes he allegedly overpaid for 1968, 1969, and 1970. The controversy turns on whether payments made by Graybar Electric Company to the estate of its deceased employee, Mrs. Marguerite Jensen, wife of the complainant, on the redemption of Graybar stock held by her estate, constitute taxable income or nontaxable gifts.

Mrs. Jensen had been employed for Graybar for twenty-five years. In 1944, at the age of fifty, she retired as secretary to Graybar’s president and chairman of the board. During her…