¶1dissenting: It seems to me that in this case the majority of the Court has decided a case different from the one here present. This is not the situation which was involved in any of the cases cited, where the adjustment of salary authorized for a particular year was made within the year. In the instant case, long after both the year and the services for which the compensation was paid had been concluded and the compensation had been paid, the petitioner voluntarily agreed to return a part of the amount received to the corporation. The compensation had been paid to him by the corporation subject to no condition and received by petitioner as his own and under claim of right. It was his to do with as he saw fit and the corporation had no claim upon him with respect thereto. It was his income and taxable to him. North American Oil Consolidated v. Burnet, 286 U. S. 417. If the salary adjustment had been that of a current year, salary for a year in which the services were not yet complete and the transaction so-called between the officer and his corporation had not become a closed transaction, then there would be adequate basis for bringing this case within the cases cited in the majority opinion. As stated, however, the services had been wholly completed and petitioner had received the salary as his own and under claim of right and his subsequent voluntary return after completion of all acts with respect thereto between the parties can in no way serve to convert the amounts involved into something other than income. Cf. Corliss v. Bowers, 281 U. S. 376. I accordingly note my dissent.
11 T.C. 672
Clark v. Commissioner
Decided October 25, 1948
United States Tax Court · decided 1948-10-25
Where prior to the close of the taxable year 1942 the petitioner entered into an agreement with the other officers and directors of the corporation of which he was president, limiting his salary and… Held: that the petitioner is not taxable in 1942 on that portion of the compensation which, prior to the close of the taxable year, he agreed to return to the corporation.
Relies on Corliss v. Bowers · North American Oil Consolidated v. Burnet
Good law ✅— No negative treatment on recordhow we know
Decision will be entered under Rule 50 · Decided 1948-10-25
How this case has been cited
Cited by 12 later decisions — most recently January 1995
2 federal appellate ·
Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.
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