Lohman v. Commissioner
United States Board of Tax Appeals
Petitioner and several other attorneys were engaged by the State of Missouri to defend the interests of the state and of the policyholders in fire insurance rate litigation cases. In May 1935 an agreement of settlement was entered into between the state and the insurance companies in which the latter agreed to pay $500,000 to the attorneys for the services which they had rendered the state in the litigation.
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Petitioner and several other attorneys were engaged by the State of Missouri to defend the interests of the state and of the policyholders in fire insurance rate litigation cases. In May 1935 an agreement of settlement was entered into between the state and the insurance companies in which the latter agreed to pay $500,000 to the attorneys for the services which they had rendered the state in the litigation. Petitioner received $63,540 in 1936 as his portion of the amount paid in that year by the fire insurance companies in accordance with the settlement. Under the evidence it is held: (1)…
1Opinion of the Court
*502OPINION.
Mellott :
The parties agree that petitioner was not an officer of the State of Missouri, and that the insurance department of the state is an instrumentality thereof, engaged in the exercise of an essential governmental function. Petitioner contends that the amount which he received was compensation for personal services rendered as an employee of the state and therefore exempt from Federal income tax.
In Graves v. New York ex rel O'Keefe (1939), 306 U. S. 466, the Supreme Court held that salaries of employees or officials of Federal *503instrumentalities are not immune under the Federal…
2Cases cited11 opinions
- Metcalf & Eddy v. MitchellSupreme Court of the United States · 1926
- Graves v. New York Ex Rel. O'KeefeSupreme Court of the United States · 1939
- Helvering v. GerhardtSupreme Court of the United States · 1938
- Singer Manufacturing Co. v. RahnSupreme Court of the United States · 1889
- State Tax Commission v. Van CottSupreme Court of the United States · 1939
6 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Beer v. CommissionerUnited States Tax Court · 1975
- Beer v. CommissionerUnited States Tax Court · 1975
- Lohman v. CommissionerUnited States Board of Tax Appeals · 1941