Wayne Hugh Easley Trust v. Commissioner

opinion.

Van Fossan, Judge:

The sole question presented here is whether the interest payments made in 1948 to the petitioners on their respective overassessments of income taxes are properly includible, within the gross income of each recipient pursuant to section 22 (á) of the Internal Revenue Code,1 as determined by respondent.

Petitioners contend that the interest payments did not constitute gross income to them for the reason that they were under an obligation to pay over such interest to the settlors to whom in equity it rightfully belonged and that in the performance of such obligation…