Tousek v. Commissioner

*1164 Before IVINS, MARQUETTE, and MORRIS.

FINDINGS OF FACT.

1. From 1899 to January 20, 1920, the taxpayer was in the continuous employ of A. G. Spalding & Brothers, Inc., being an executive officer and acting in the capacity of comptroller and assistant treasurer during the last ten years. He did not have a written contract of employment at any time. In 1919 his regular salary was $10,000 and he received a bonus at the end of the year of $2,000.

*1165 2. On January 21, 1920, while proceeding to his place of business, he collapsed in the street, and was thereafter confined to his home under the care of a physician for a period of two years.

3. Some time during 1920 his resignation was requested, but he remained on the pay roll throughout the year, receiving $500 semimonthly, making a total of $12,000.

4. For the year 1920 the taxpayer forwarded to the collector for his district*2650 Form 1040, partially executed, to which was attached a statement setting forth the receipt of the $12,000, and giving as the reason for his failure to include the same in his gross income, that it was in the nature of a gift, as he rendered no services after January 20 of that year. The Commissioner included the amount in the taxpayer's gross income, assessed a tax of $754.17 and rejected his claim in abatement under date of November 28, 1924, from which this appeal is taken.

DECISION.

The determination of the Commissioner is approved.

OPINION.

MORRIS: It is our opinion that the amount received by the taxpayer in 1920 from A. G. Spalding & Brothers, Inc., was compensation and not a gift. See .