Tennessee Foundry & MacHine Company v. Commissioner of Internal Revenue

An employee of'the petitioner left a suicide note confessing embezzlement subsequently determined to have been slightly in excess of $94,000, of which more than $75,000 had been previously reported as income for federal tax purposes. The widow of the deceased employee was the named beneficiary in a life insurance policy and she individually and as administratrix of his estate executed an assignment to the petitioner of all of her rights in and all monies which might become payable under the policy. The Commissioner of Internal Revenue determined that the sum received by petitioner under this…