- 5 - Section 61 provides that gross income includes "all income from whatever source derived," unless otherwise provided. The Supreme Court has consistently given this definition of gross income a liberal construction "in recognition of the intention of Congress to tax all gains except those specifically exempted." Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 430 (1955); see also Roemer v. Commissioner, 716 F.2d 693, 696 (9th Cir. 1983), revg. 79 T.C. 398 (1982) (all realized accessions to wealth are presumed taxable income, unless the taxpayer can demonstrate that an acquisition is specifically exempted from taxation). Moreover, section 1.61-2(a)(1), Income Tax Regs., provides that "wages, salaries, commissions paid salesmen * * * are income to the recipients unless excluded by law". The amounts petitioner received from his employer represented payments for his services. Those amounts represented compensation for services rendered. Those amounts are includable in gross income. Whatever rights petitioner surrendered or forfeited in his employment relationship with the company have no bearing on the tax consequences of the amounts paid to petitioner for his services. Petitioner's argument, therefore, is rejected, and respondent is sustained.Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011