Mae N. Pearson v. United States

WINTER, Circuit Judge:

In 1968 and 1969, Mrs. Mae Pearson paid long-term capital gains taxes on certain monies — termed by the parties as “special death benefits” — received by her from the Graybar Electric Company (Graybar), her deceased husband’s former employer. She sued for a refund of these taxes, claiming that they were erroneously paid because the amounts paid to her by Graybar were gifts, excluded from gross income under § 102(a) of the Internal Revenue Code of 1954, 26 U.S.C. § 102(a). The district court gave judgment in her favor, and the government appealed. We reverse:

I

With this…