Mannette v. Commissioner
United States Tax Court
T concededly failed to report as income funds which he embezzled from his employer in 1969, 1970, and 1971. During those years, T purchased and sold for his own account various securities (including commodities). The majority of his purchases were made out of his embezzled funds. In 1972, T made partial restitution of the embezzled funds.
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T concededly failed to report as income funds which he embezzled from his employer in 1969, 1970, and 1971. During those years, T purchased and sold for his own account various securities (including commodities). The majority of his purchases were made out of his embezzled funds. In 1972, T made partial restitution of the embezzled funds. Held: T's 1972 loss incurred as a result of the restitution does not qualify as a net operating loss eligible to be carried back and deducted in 1969, 1970, and 1971 under sec. 172, I.R.C. 1954. The 1972 loss was not a loss incurred in a trade or business,…
1Opinion of the Court
OPINION
Raum, Judge:
Respondent determined deficiencies in petitioner’s Federal income taxes as follows:
_Additions to tax, I.R.C. 195U_
Year Amount Sec. 6653(b) Sec. 6651(a) Sec. 6653(a)
1969 .$11,644.61 $5,822.31
1970 . 57,450.77 28,725.39
1971 .66,202.49 $16,069.46 $3,310.12
As a result of concessions by the parties, the only issue remaining for decision is whether petitioner, an embezzler, may reduce his income tax liability for years in which he embezzled funds by making partial restitution of these funds in a taxable year subsequent to the years at issue. All of the facts have been stipulated.…
2Cases cited10 opinions
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- Higgins v. CommissionerSupreme Court of the United States · 1941
- Heiner v. DonnanSupreme Court of the United States · 1932
- Fox v. CommissionerUnited States Tax Court · 1974
- Hosking v. CommissionerUnited States Tax Court · 1974
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3Cited by21 opinions
- Jess Kraft and Barbara Kraft v. United StatesCourt of Appeals for the Sixth Circuit · 1993
- Cloes v. CommissionerUnited States Tax Court · 1982
- Stephen B. Scallen and Chacke Y. Scallen v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1989
- Jon T. Stephens and Susanne Stephens v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1990
- Stephens v. CommissionerUnited States Tax Court · 1989
16 more not listed; retrieve them via the Exa API.