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Pursuant to the agreement, from February 2 through May 19, 1998,
petitioner received payments totaling $7,050 (the payments).
The payments were reported on a Form W-2, Wage and Tax Statement,
issued to petitioner by the General American Life Insurance
Company, the third-party administrator for Anheuser’s self-
insured, group indemnity plan. Petitioner did not contribute to
the cost of this plan, and contributions made to this plan on his
behalf were not included in his income for any period.
Petitioners did not include the payments in the income
reported on their 1998 return. In the notice of deficiency,
respondent determined that the payments must be included in
petitioners’ 1998 income. Other adjustments made in the notice
of deficiency are not in dispute.
Discussion
According to respondent, the payments constitute income.
Section 61(a) defines gross income as “all income from
whatever source derived”. Income is defined as “undeniable
accessions to wealth” clearly realized by a taxpayer over which
the taxpayer has “complete dominion”. Commissioner v. Glenshaw
Glass Co., 348 U.S. 426, 431 (1955). Whether a taxpayer enjoys
“complete dominion” over an “accession to wealth” depends upon
“whether the taxpayer has some guarantee that * * * [the
taxpayer] will be allowed to keep the money”. Commissioner v.
Indianapolis Power & Light Co., 493 U.S. 203, 210 (1990).
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Last modified: May 25, 2011