Clay v. Commissioner
United States Tax Court
Petitioner's corporate employer paid the premiums on a group, term life insurance policy on his life, with petitioner naming the beneficiary. Petitioner owned control of his employer. Respondent contends that under the facts the policy was made available to petitioner solely because he was an owner, and that such premiums are additional salary or compensation to him.
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Petitioner's corporate employer paid the premiums on a group, term life insurance policy on his life, with petitioner naming the beneficiary. Petitioner owned control of his employer. Respondent contends that under the facts the policy was made available to petitioner solely because he was an owner, and that such premiums are additional salary or compensation to him. Held, the policy and the premiums were available to petitioner as an employee within the meaning of section 1.61-2(d)(2), Income Tax Regs., and such premiums are not taxable to him.
1Opinion of the Court
OPINION
FORRESTER, Judge:
The respondent has determined deficiencies in the income tax of the petitioners for 1960 and 1961 in the amounts of $200.54 and $172.18, respectively. Certain matters have been compromised by the parties so that the sole issue remaining for our consideration is whether the sum of $405 paid during each of the years in issue by petitioner Edward P. Clay’s employer (Leavenworth Motors, Inc., a corporation principally owned 'by Edward P. Clay) as premiums on a policy of group, term life insurance on the life of petitioner Edward P. Clay constitutes taxable income to the…
2Cases cited5 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. CliffordSupreme Court of the United States · 1940
- Commissioner v. Glenshaw Glass Co.Supreme Court of the United States · 1955
- Commissioner v. LoBueSupreme Court of the United States · 1956
- Jones v. HelveringCourt of Appeals for the D.C. Circuit · 1934
3Cited by18 opinions
- Sibla v. CommissionerUnited States Tax Court · 1977
- Larkin v. CommissionerUnited States Tax Court · 1967
- H. B. Zachry Co. v. CommissionerUnited States Tax Court · 1967
- Pacific Mut. Life Ins. Co. v. CommissionerUnited States Tax Court · 1967
- Enright v. CommissionerUnited States Tax Court · 1971
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