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Respondent determined for 2000 a deficiency in petitioner's
Federal income tax of $2,245. After a concession by petitioner,1
the issue remaining for decision is whether money given to
petitioner by her supervisor constitutes a taxable bonus or a
tax-free gift.
Background
The stipulation of facts and the exhibits received into
evidence are incorporated herein by reference. Petitioner
resided in Redwood City, California, at the time the petition in
this case was filed.
During the year at issue, petitioner was employed as an
executive assistant at Fox Paine & Co., LLC (Fox Paine). On or
about December 10, 2000, petitioner received personal check No.
0435 in the amount of $7,500 from her supervisor, James R. Kroner
(Mr. Kroner). Petitioner's signature and account number appear
on the back of the check, which she deposited into her personal
account. Petitioner resigned from Fox Paine on December 29,
2000.
Fox Paine issued to petitioner a Form 1099-MISC,
Miscellaneous Income, reporting $5,000 in nonemployee
compensation. When respondent inquired about the payment, a Fox
Paine executive confirmed that the Form 1099-MISC should have
1In the notice of deficiency, respondent determined that
petitioner failed to include in income a State income tax refund
of $843 from a prior year. Petitioner has conceded this issue.
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