Zimmermann v. Commissioner
United States Tax Court
A $ 3,000 payment was made to petitioner in 1951 out of a fund comprised of the surrender value of an endowment contract and an annuity contract and accumulated interest thereon. The payment was made pursuant to an agreement whereby the insurance company retained the fund at interest of not less than 3 per cent on the unpaid balance, distributed to petitioner $ 3,000 per annum, and reserved to petitioner the right to withdraw all or part of the unpaid balance at any time.
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A $ 3,000 payment was made to petitioner in 1951 out of a fund comprised of the surrender value of an endowment contract and an annuity contract and accumulated interest thereon. The payment was made pursuant to an agreement whereby the insurance company retained the fund at interest of not less than 3 per cent on the unpaid balance, distributed to petitioner $ 3,000 per annum, and reserved to petitioner the right to withdraw all or part of the unpaid balance at any time. The amount of interest credited to the account in 1951 was $ 2,955.03. Held, the payment was not exempt from taxation…
1Opinion of the Court
OPINION.
Bruce, Judge:
Petitioner received a $3,000 payment from the Insurance Company in 1951 out of a fund comprised of the total surrender values of an endowment contract and an annuity contract and accumulated interest thereon. Interest on the fund in the amount of $2,955.03 had been credited to petitioner’s account in that year. The parties are agreed that the payment was not taxable as an annuity under the second sentence of section 22 (b) (2) (A) of the Internal Revenue Code of 1939.1 George H. Thornley, 2 T. C. 220, reversed on another issue (C. A. 3) 147 F. 2d 416. Petitioner contends,…
2Cases cited16 opinions
- Carr v. HamiltonSupreme Court of the United States · 1889
- Thornley v. Commissioners of Internal RevenueCourt of Appeals for the Third Circuit · 1945
- Thornley v. CommissionerUnited States Tax Court · 1943
- Fleming v. CommissionerUnited States Tax Court · 1955
- Blum v. HigginsCourt of Appeals for the Second Circuit · 1945
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3Cited by2 opinions
- Phil L. Zimmermann v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1957
- Zimmermann v. CommissionerUnited States Tax Court · 1955