Commissioner v. Wilcox

By holding in this case that embezzled funds do not constitute a taxable gain to the embezzler under the Internal Revenue Code, I believe the Court misinterprets the Code. That interpretation is contrary to the established administrative construction of the Code and to what appears to be the intent of § 22 (a) as disclosed by its legislative history. Section 22 (a) expressly includes in the net income of a taxable person “gains or profits and *411income derived from any source whatever.” 26 TJ. S. C., § 22 (a). It is difficult to imagine a broader definition. This Court has said of this section,…