Spruance v. Commissioner
United States Board of Tax Appeals
1. Thomas Spruance, now deceased, during the taxable years embezzled and misappropriated funds belonging to the bank by which he was employed and applied them to his personal use and benefit. On his death in April 1937 he left an insolvent estate which is unable to restore the embezzled funds.
Read the full summary
1. Thomas Spruance, now deceased, during the taxable years embezzled and misappropriated funds belonging to the bank by which he was employed and applied them to his personal use and benefit. On his death in April 1937 he left an insolvent estate which is unable to restore the embezzled funds. Held, that the sums misappropriated by Spruance are taxable to his estate as income for the years in which the embezzlement occurred; held, further, that Hortense Spruance, the wife of Thomas Spruance, may not be taxed on one-half the embezzled funds under the community property laws of Texas, since the…
1Opinion of the Court
*224 OPINION.
Arundell:
The issues presented here for decision are threefold: (1) Whether Thomas Spruance realized taxable income from the misapplication, misappropriation, and embezzlement of the funds of the First State Bank of Arlington; (2) whether, if the first be answered in the affirmative, such income may be regarded as community income and taxed one-half to petitioner Hortense Spruance; and (3) whether stock owned by petitioners in the bank became worthless in 1937.
On the first question petitioners argue that funds acquired through embezzlement are not income to the embezzler, since he…
2Cases cited12 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- United States v. SullivanSupreme Court of the United States · 1927
- Poe v. SeabornSupreme Court of the United States · 1930
- Hopkins v. BaconSupreme Court of the United States · 1930
- Helvering v. PriceSupreme Court of the United States · 1940
7 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- McKnight v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1942
- Nerem v. CommissionerUnited States Tax Court · 1963
- Boyer v. CommissionerUnited States Tax Court · 1955
- Commissioner v. WilcoxSupreme Court of the United States · 1946
- Crawford v. CommissionerUnited States Tax Court · 1961
4 more not listed; retrieve them via the Exa API.