Eldon R. Kenseth and Susan M. Kenseth - Page 21

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         See Bagley v. Commissioner, 105 T.C. 396, 418-419 (1995), affd.                
         121 F.3d 393, 395-396 (8th Cir. 1997); O’Brien v. Commissioner,                
         38 T.C. 707, 712 (1962), affd. per curiam 319 F.2d 532 (3d Cir.                
         1963); Benci-Woodward v. Commissioner, T.C. Memo. 1998-395, on                 
         appeal (9th Cir., Feb. 2, 1999).  In O’Brien, we held that “even               
         if the taxpayer had made an irrevocable assignment of a portion                
         of his future recovery to his attorney to such an extent that he               
         never thereafter became entitled thereto even for a split second,              
         it would still be gross income to him under” assignment of income              
         principles.  O’Brien v. Commissioner, supra at 712.  “Although                 
         there may be considerable equity to the taxpayer’s position, that              
         is not the way the statute is written.”  Id. at 710.  In reaching              
         this conclusion, we rejected the distinction made in Cotnam v.                 
         Commissioner, supra, with respect to the Alabama attorney’s lien               
         statute, stating that it is “doubtful that the Internal Revenue                
         Code was intended to turn upon such refinements.”  O’Brien v.                  
         Commissioner, supra at 712.  Numerous decisions of this Court                  
         have reached the same result as O’Brien by distinguishing other                
         States’ attorney’s lien statutes from the Alabama statute                      
         considered in Cotnam.  See Estate of Gadlow v. Commissioner, 50                
         T.C. 975, 979-980 (1968) (Pennsylvania law); Petersen v.                       

          income doctrine that was originated by the Supreme Court in Lucas             
          v. Earl, 281 U.S. 111 (1930).  Lucas v. Earl, supra, has been                 
          relied on by this Court for assignments of income involving both              
          related and unrelated taxpayers.                                              

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