Coleman v. Commissioner

The decision of the Tax Court in the case at bar recommends itself for it provides that income paid to a beneficiary is taxable to him as such. The decision should be affirmed in view of Dobson v. Commissioner, 320 U.S. 489, 64 S.Ct. 239, 88 L.Ed. 248, and Commissioner v. Scottish American Investment Company, Ltd., 323 U.S. 119, 65 S.Ct. 169, were it not for the legislative and judicial history of the language contained in Sections 22(b) (3) and 162(b) of the Revenue Act of 1938.

It is unnecessary to state that history in full. The following is a resumé. In the *239majority opinion in Irwin v.…