Appeal of E. B. TOUSEK

Appeal of E. B. TOUSEK. Docket No. 1497. Upon the evidence, held, that the amount received by the taxpayer in 1920 from A. G. Spalding & Brothers, Inc., was compensation, and not a gift. Submitted April 15, 1925; decided May 20, 1925. Henry Varay, G. P. A., for the taxpayer. J. Arthur Adams, Esq., for the Commissioner. 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, tie 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. 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 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. [MAJORITY] OPINION. MoeRis: 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 Appeal of John H. Parrott, 1 B. T. A. 1.