- 18 -
the end of a recovery period to determine whether a refund is
required.
Petitioner argues that such overrecoveries are not
includable in income under section 61(a) because the obligation
to repay, imposed by regulatory law, was unconditional.
According to petitioner’s view, Florida Power is required to
refund an overrecovery from any given month in a subsequent month
of the same recovery period by setoff or according to the true-up
adjustment imposed by regulatory law over subsequent recovery
periods. Petitioner claims one should look at a monthly
collection to determine whether a refund is required.
Section 61(a) defines gross income as “all income from
whatever source derived.” Congress enacted this text intending
to use the full measure of its taxing power. See Helvering v.
Clifford, 309 U.S. 331, 334 (1940). The definition of gross
income is construed broadly to reach any accession to wealth
realized by a taxpayer over which the taxpayer has “complete
dominion”. Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 431
(1955). “In determining whether a taxpayer enjoys ‘complete
dominion’, * * * The key is whether the taxpayer has some
guarantee that he will be allowed to keep the money.”
Indianapolis Power & Light Co. v. Commissioner, 493 U.S. 203, 210
(1990).
Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 NextLast modified: May 25, 2011