Smith v. Manning’s Empirical Analysis
189 F.2d 345 · 1951
Citation profile
9 federal appellate · 2 district ·
How this case has been cited
Cited by 23 later decisions — most recently March 2013
9 federal appellate · 2 district ·
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.
Relationships
Applies 26 U.S.C. § 22 · 26 U.S.C. § 23
Relies on United States v. United States Gypsum Co. · Helvering v. Clifford · Old Colony Trust Co. v. Commissioner · Bogardus v. Commissioner · Commissioner of Internal Revenue v. Jacobson
Most-quoted passages
The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 23 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.
“* * * It .is obvious, from a comparison of Section 22(a) and Section 23 [of tbe 1939 Code], that a determination of non-deductibility under the latter does not conclude the issue of gross income under the former. We all know that we have items of expense which, when paid, are includible in the payee’s gross income, but which are not deductible to us. In the instant case, the Commissioner may well have denied Smith [the father] a deduction on the ground that the amounts paid to his daughters were something other than business expenses or that they were something other than compensation for services actually rendered. He did not do so. He merely resolved the issue of reasonable compensation, and disallowed the balance. It does not necessarily follow upon this determination that the excess was other than taxable income to the daughters. Nor does it necessarily follow that the excess was not compensation for services. Section 22(a) includes in the recipient’s gross income all wages and salaries; Section 23(a) (1) (A) permits the payor to deduct as a business expense only a reasonable allowance for services actually rendered. Normal bargaining between employee and employer may be depended upon to conform the one’s tax liability under Section 22(a) to the other’s tax benefit under Section 23(a) (1) (A). But in particular instances, and they are not infrequent, deviations from the standard fixed in Section 23(a) (1) (A) occur, for ordinarily nothing prohibits the parties from agreei”
1 later decision quote this exact passage · from the majority“only came to consider the payments as gifts when he failed to convince the Commissioner that they were not excessive compensation.”
1 later decision quote this exact passage · from the majority“a reasonable allowance for salaries or other compensation for personal services actually rendered”
1 later decision quote this exact passage · from the majority
How this case has been treated — in progress
Whether each later court followed, distinguished, criticized, or overruled this decision. The treatment classification (task #35) runs highest-cited cases first and lights up here as it reaches this one.