Wilkins v. Commissioner
United States Tax Court
Held, a distribution to petitioner from a qualified profit-sharing trust of a corporation, which was made at the request of a union representing hourly employees in labor negotiations and pursuant to an amendment of the trust on Aug. 23, 1966, effective as of Aug. 31, 1966, is taxable to petitioner as ordinary income and not as long-term capital gain since the fact that petitioner and other hourly employees of the corporation were on strike from June 1, 1966, to Aug. 4,…
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Held, a distribution to petitioner from a qualified profit-sharing trust of a corporation, which was made at the request of a union representing hourly employees in labor negotiations and pursuant to an amendment of the trust on Aug. 23, 1966, effective as of Aug. 31, 1966, is taxable to petitioner as ordinary income and not as long-term capital gain since the fact that petitioner and other hourly employees of the corporation were on strike from June 1, 1966, to Aug. 4, 1966, was not a "separation from the service" of the corporation by petitioner and even were petitioner to be considered to…
1Opinion of the Court
OPINION
Section 402(a)2 provides that amounts actually distributed to a person by an employees’ trust qualified under section 401 (a) as exempt from tax under section 501(a) shall be taxable to him in .the year of distribution under section 72 relating to annuities, except that if the total distributions payable to any employee are paid within 1 year “on account of the employee’s death or other separation from the service,” such distribution shall be considered as long-term capital gain.
The record here shows that the total distributions payable to petitioner were paid at one time, on September…
2Cases cited8 opinions
- United States v. Ophelia Johnson and Ophelia R. Johnson, as Under the Last Will and Testament of Clifford L. Johnson, DeceasedCourt of Appeals for the Fifth Circuit · 1964
- Glinske v. CommissionerUnited States Tax Court · 1951
- Fry v. CommissionerUnited States Tax Court · 1952
- Fry's Estate v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1953
- E. N. Funkhouser and Estate of Nellie S. Funkhouser, Deceased, E. N. Funkhouser v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1967
3 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Wilkins v. CommissionerUnited States Tax Court · 1970