Grossman & Sons v. Commissioner
United States Tax Court
Amount paid by taxpayer in settlement of claims made by the United States in a suit against taxpayer brought under 31 U.S.C. secs. 231-233 (False Claims Act), found on the evidence presented to be common law contractual damages as characterized in taxpayer's settlement offer which was accepted by the United States, held to be deductible. Allowance of the deduction would not frustrate a sharply defined public policy of the United States.
1Opinion of the Court
DkeNnbn, Judge:
In these consolidated proceedings, respondent determined deficiencies in petitioners’ income tax for the years stated as follows:
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The notice of deficiency in docket No. 1717-65 made several adjustments in petitioner’s taxable income for the years involved but in its pleadings petitioner raised only two issues, one involving the reduction of income by, or the deductibility of, the $100,000 petitioner agreed to pay the United 'States in 1959 in settlement of various claims, mentioned more in detail below, and the second one involving the deductibility of office…
2Cases cited23 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- United States Ex Rel. Marcus v. HessSupreme Court of the United States · 1943
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- Commissioner v. TellierSupreme Court of the United States · 1966
- Rex Trailer Co. v. United StatesSupreme Court of the United States · 1956
18 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
- Fred W. Amend Co. v. CommissionerUnited States Tax Court · 1970
- Middle Atlantic Distributors, Inc. v. CommissionerUnited States Tax Court · 1979
- S & B Restaurant, Inc. v. CommissionerUnited States Tax Court · 1980
- Fisher Cos. v. CommissionerUnited States Tax Court · 1985
13 more not listed; retrieve them via the Exa API.