Muldrow v. Commissioner
United States Tax Court
1. During the taxable year petitioner, the operator of a cotton warehouse, illegally removed and sold as his own 812 bales of cotton which had been stored by others with him. From such sales, he received $ 137,642.12, which he deposited as his own in his personal bank account.
Read the full summary
1. During the taxable year petitioner, the operator of a cotton warehouse, illegally removed and sold as his own 812 bales of cotton which had been stored by others with him. From such sales, he received $ 137,642.12, which he deposited as his own in his personal bank account. There is no showing of any recognition, consensual or otherwise, of any obligation to the owners of the cotton for the sales proceeds until after the taking of the cotton was discovered by State warehouse inspectors in 1958. Held, that respondent did not err in failing to exclude the sales proceeds from gross income in…
1Opinion of the Court
OPINION.
Turnee, Judge:
It is the position of petitioner that to the extent of the proceeds from the sale of the 812 bales of cotton illegally taken and sold from his warehouse his cotton sales as reported in his 1955 return were overstated and should be adjusted to eliminate the $137,642.12 received therefor. In short, it is his contention that the said sales proceeds should be excluded in arriving at his gross income. As the basis for the claim, it is said that petitioner never held the funds under any claim of right but has forthrightly admitted his indebtedness to the legitimate holders of…
2Cases cited11 opinions
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Commissioner v. WilcoxSupreme Court of the United States · 1946
- Montana v. KennedySupreme Court of the United States · 1961
- Sicanoff Vegetable Oil Corp. v. CommissionerUnited States Tax Court · 1957
- United States v. New York Coffee & Sugar Exchange, Inc.Supreme Court of the United States · 1924
6 more not listed; retrieve them via the Exa API.
3Cited by41 opinions
- United States v. Amy T. CritzerCourt of Appeals for the Fourth Circuit · 1974
- Estate of Wallace P. Geiger, Deceased, Warren G. Dunkle, and Burnice I. Geiger v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1966
- Hoover Co. v. CommissionerUnited States Tax Court · 1979
- Federal Nat'l Mortgage Ass'n v. CommissionerUnited States Tax Court · 1993
- Vickers v. CommissionerUnited States Tax Court · 1983
36 more not listed; retrieve them via the Exa API.