Lykes Energy, Inc. and Subsidiaries - Page 9

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          realized no gain or profit when it collected the funds.                     
          Respondent argues that the FEECA receipts are includable in                 
          People's gross income.  Respondent contends that People's                   
          collected the receipts without a trust relationship.  Respondent            
          contends that the FEECA expenditures benefited People's                     
               We agree with respondent that the FEECA receipts are                   
          includable in People's gross income.  We begin our analysis with            
          the statutory text, which provides that "gross income means all             
          income from whatever source derived".  Sec. 61(a).  Congress                
          prescribed this text intending to "use the full measure of its              
          taxing power".  Helvering v. Clifford, 309 U.S. 331, 334 (1940).            
          This text is construed broadly to reach any accession to wealth             
          realized by a taxpayer, and over which the taxpayer has complete            
          control.  See United States v. Burke, 504 U.S. 229 (1992);                  
          Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 431 (1955).               
               Funds received by a taxpayer are excludable from gross                 
          income when:  (1) The funds are received in trust subject to a              
          restriction that they be expended for a specific purpose and                
          (2) the taxpayer does not profit, gain, or benefit in spending              
          the funds for the stated purpose.  See Ford Dealers Adver. Fund,            
          Inc. v. Commissioner, 55 T.C. 761, 771-772 (1971) (discussing               
          Seven-Up Co. v. Commissioner, supra, and its progeny), affd. per            
          curiam 456 F.2d 255 (5th Cir. 1972).  People's does not meet this           

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