Tucker v. Commissioner
United States Tax Court
P is a teacher who engaged in a strike that is illegal under the Taylor Act in New York State. For engaging in an illegal strike, the Taylor Act imposes a penalty equal to 1 day's pay for each day an employee participates in an illegal strike. The penalty is withheld from earnings accruing for periods after the employee returns to work.
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P is a teacher who engaged in a strike that is illegal under the Taylor Act in New York State. For engaging in an illegal strike, the Taylor Act imposes a penalty equal to 1 day's pay for each day an employee participates in an illegal strike. The penalty is withheld from earnings accruing for periods after the employee returns to work. Held, the penalty withheld from P's salary extinguished an obligation owed to the State and therefore resulted in income to P. Held, further, deduction of the penalty is prohibited by sec. 162(f), I.R.C. 1954.
1Opinion of the Court
OPINION
Wilbur, Jvdge:
Respondent determined a deficiency of $433.94 in petitioners’ Federal income tax for the taxable year 1973.
The two issues presented for our determination are: (1) Whether $1,509, which was withheld from petitioner Carol Tucker’s salary under State law for her participation in a teacher’s strike, is includable in petitioners’ gross income for Federal income tax purposes during taxable year 1973, and if so, (2) whether petitioners are denied a deduction for this amount under section 162(f).1
The parties stipulated all of the facts and submitted the case under Rule 122, Tax…
2Cases cited11 opinions
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- Lawrence J. Cohen and Marilyn P. Cohen v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1976
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