Herrick v. Commissioner
United States Tax Court
Held: (1) Amounts advanced by an attorney on behalf of his clients for litigation costs with the understanding that he would be repaid from the recovery at the conclusion of the case are in the nature of loans which are not deductible as business expenses under sec. 162(a), I.R.C. 1954, and nothing in the holding of the United States Court of Appeals for the Fifth Circuit, to which an appeal in this case would lie, in Burnett v. Commissioner, 356 F. 2d 755 (C.A. 5, 1966),…
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Held: (1) Amounts advanced by an attorney on behalf of his clients for litigation costs with the understanding that he would be repaid from the recovery at the conclusion of the case are in the nature of loans which are not deductible as business expenses under sec. 162(a), I.R.C. 1954, and nothing in the holding of the United States Court of Appeals for the Fifth Circuit, to which an appeal in this case would lie, in Burnett v. Commissioner, 356 F. 2d 755 (C.A. 5, 1966), affirming in part and remanding 42 T.C. 9 (1964), requires a contrary conclusion. (2) Petitioner's uncorroborated…
1Opinion of the Court
Scott, Judge:
Respondent determined a deficiency in petitioners’ Federal income tax for the calendar year 1969 in the amount of $15,937.92. The issues for decision are (1) whether petitioners are entitled to deduct as ordinary and necessary business expenses for the calendar year 1969 amounts advanced to the clients of one of the petitioners in connection with handling workmen’s compensation and personal injury cases on their behalf, and (2) whether petitioners are entitled to deduct $4,800 claimed as entertainment expenses for the calendar year 1969.
FINDINGS OF FACT
Some of the facts have been…
2Cases cited13 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Canelo v. CommissionerUnited States Tax Court · 1969
- Patchen v. CommissionerUnited States Tax Court · 1956
- Reginald G. Hearn and Mary L. Hearn, Husband and Wife v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1962
- Hearn v. CommissionerUnited States Tax Court · 1961
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- Boccardo v. CommissionerUnited States Tax Court · 1993
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