Lisa B. Williams - Page 9

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          (1986), 1986-3 C.B. (Vol. 3) 1, 49.  Clearly, the amounts                   
          received by petitioner do not fall within the narrow exception              
          intended for purely personal reasons.  Accordingly, under section           
          102(c)(1), petitioner would not be entitled to treat the amounts            
          received as excludable from gross income.                                   
               Furthermore, the record does not support a finding that Dr.            
          Deland, based on detached and disinterested generosity and out of           
          affection, respect, and admiration, intended to make gifts to               
          petitioner.  Commissioner v. Duberstein, 363 U.S. 278, 285                  
          (1960).  The facts in this case reflect that the amounts paid to            
          petitioner were in exchange for her high-quality performance as             
          an employee.  The amounts were paid as bonuses after evaluation             
          of her performance by the corporation’s chief operating officer             
          and his recommendation of the bonus amounts.  The recommended               
          amounts were approved by Dr. Deland, the person who petitioner              
          alleges made the alleged gifts.                                             
               It is clear from this record that petitioner was a key                 
          employee and that the amount she received in each of the 3 years            
          was earned and commensurate with the bonuses paid to other                  
          employees, including Mr. Sullivan.  Petitioner has placed much              
          emphasis on the fact that Dr. Deland was a personal friend, and             
          she contends that the friendship was the source of disinterested            
          generosity to support a gift.  Dr. Deland’s approval and payment            
          of the amounts in question, however, were not out of                        

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