Vercio v. Commissioner
United States Tax Court
Petitioners created trusts to which lifetime services and all remuneration accruing therefrom were purportedly conveyed. Included in the trust instrument was a provision which allowed for the application of income for the benefit of the grantor's spouse.
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Petitioners created trusts to which lifetime services and all remuneration accruing therefrom were purportedly conveyed. Included in the trust instrument was a provision which allowed for the application of income for the benefit of the grantor's spouse. Held: 1. The purported conveyances were merely an assignment of income ineffective to shift the incidence of taxation to the trusts on amounts paid as compensation for services. 2. Petitioners as grantors are to be treated as owners of the entire trust under secs. 671 and 677, I.R.C. 1954. 3. Petitioners are liable for additions to tax under…
1Opinion of the Court
Drennen, Judge:
In these consolidated cases, respondent determined the following deficiencies in petitioners’ Federal income tax:
Addition to tax under
Docket No. Petitioner Year Deficient/ Sec. 6651(a) Sec. 6653(a)1
7108-77 Raymond A.Vercio and Roseanne Vercio 1973 $16,333.45 $1,454.08 $864,541
1974 21,050.25 2,349.03 1,277.96
10919-77 Rav Hailey, Jr., and Wilma Hailey. 1974 4,500.00 225.00
The issues for decision are:(1) Whether conveyances by petitioners of their lifetime services to family trusts established by them were effective to shift the incidence of taxation on amounts representing…
2Cases cited15 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Lucas v. EarlSupreme Court of the United States · 1930
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- United States v. BasyeSupreme Court of the United States · 1973
- Markosian v. CommissionerUnited States Tax Court · 1980
10 more not listed; retrieve them via the Exa API.
3Cited by131 opinions
- Luman v. CommissionerUnited States Tax Court · 1982
- Markosian v. CommissionerUnited States Tax Court · 1980
- Haag v. CommissionerUnited States Tax Court · 1987
- United States v. Gordon S. ButtorffCourt of Appeals for the Fifth Circuit · 1985
- Johnson v. CommissionerUnited States Tax Court · 1982
126 more not listed; retrieve them via the Exa API.