Tony J. Cavender - Page 6
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taxpayers have complete dominion.” Commissioner v. Glenshaw
Glass Co., 348 U.S. 426, 431 (1955).
In Crary v. Commissioner, T.C. Memo. 1970-40, a taxpayer
paid to his employer the same amount of a paycheck the taxpayer
had received from his employer on the same day. We held that,
regardless of the subsequent payment to his employer, the amount
of the paycheck was to be included in the taxpayer’s income.
In Merritt v. Commissioner, T.C. Memo. 2003-187, a taxpayer
argued that he was entitled to reduce independent contractor fees
received from a law firm by an amount he, in the same year, paid
back to the firm. We held that the total amount of the fees
received by the taxpayer constituted taxable income regardless of
the amount later paid back to the firm.
Petitioner argues that the reason the $95,233 check from
Champion was made out to and was given to him was to support an
inflated wage expense deduction on Champion’s 1998 corporate tax
return. Petitioner alleges that the $95,233 check was not signed
by him on behalf of Champion until March 29, 1999, and that it
was backdated by Champion’s part-time bookkeeper to December 30,
Respondent contends that the full $95,233 reflected by check
No. 1546 should be treated as wage income to petitioner in 1998.
Champion’s bank statements indicate that the $95,233 check
was written in late December 1998. Checks with similar numbers,
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