James v. United States

Mr. Justice Brennan and Mr. Justice Stewart concur.

The issue before us in this case is whether embezzled funds are to be included in the “gross income” of the embezzler in the year in which the funds are misappro*214priated under § 22 (a) of the Internal Revenue Code of 19391 and § 61 (a) of the Internal Revenue Code of 1954.2

The facts are not in dispute. The petitioner is a union official who, with another person, embezzled in excess of $738,000 during the years 1951 through 1954 from his employer union and from an insurance company with which the union was doing business.3 Petitioner failed to…