Gross income includes all undeniable accessions to wealth that are clearly realized and over which the taxpayers have complete dominion.
A taxpayer received money as exemplary damages for fraud and treble damages for antitrust violations. The taxpayer argued that these punitive awards were not gross income under the Internal Revenue Code. The court must determine whether such payments are included in the definition of gross income. Applying the statute, the court finds that gross income includes all income from whatever source derived. Because the payments represent undeniable accessions to wealth, are clearly realized, and are under the complete dominion of the taxpayers, they constitute taxable gross income regardless of their punitive nature.
At page 431 Taxability of punitive damages and accessions to wealth199 citing cases“accessions to wealth, clearly realized, and over which the taxpayers have complete dominion.”
- N. California Small Bus. Assistants Inc. v. Comm'r, 153 T.C. No. 4 (Tax Ct. 2019). But see Commissioner v. Glenshaw Glass Co., 348 U.S. 426 , 430 n.6 (1995) (distinguishing Stratton’s Indep., Ltd. and Doyle), discussed below in part I.C. - 27 - (analogous to basis in the Blackacre example) would yield a loss of $100.
- Molinari v. Jockey's Guild, Inc., No. 1:24-cv-12293 (D. Mass. July 30, 2025). (The mere fact that the payments were extracted from the wrongdoers as punishment for unlawful conduct cannot detract from their character as taxable income to the recipients.)
- Raju J. Mukhi, No. 4329-22 (Tax Ct. Nov. 18, 2024).published(Re-enactment—particularly without the slightest affirmative indication that Congress ever had the [interpretation] before it—is an unreliable indicium at best.)
- Lonnie Wayne Hubbard, No. 4464-21 (Tax Ct. Feb. 6, 2024).unpublished (Here we have instances of undeniable accessions to wealth, clearly realized, and over which the taxpayers have complete dominion. The mere fact that the payments were extracted from the wrongdoers as punishment for unl…)
- Mize v. Pompeo, 482 F. Supp. 3d 1317 (N.D. Ga. 2020).published(Re-enactment— particularly without the slightest affirmative indication that Congress ever had the [agency’s interpretation] before it—is an unreliable indicium at best.)
- Am. Civil Liberties Union v. Clapper, 785 F.3d 787 (2d Cir. 2015).published (Re-enactment [of a statute] — particularly without the slightest affirmative indication that Congress ever had [a particular] decision before it — is an unreliable indicium at best.)
- Polone v. Comm'r, 505 F.3d 966 (9th Cir. 2007).published (The mere fact that payments were extracted from the wrongdoers as punishment for unlawful conduct can not detract from their character as taxable income to the recip- ients.)
- Gavin Polone v. Comm'r of Internal Revenue, 479 F.3d 1019 (9th Cir. 2007).published (The mere fact that payments were extracted from the wrongdoers as punishment for unlawful conduct can not detract from their character as taxable income to the recip- ients.)
- Cir v. Polone, No. 04-72672 (9th Cir. June 5, 2006).published(The mere fact that payments were extracted from the wrongdoers as punishment for unlawful conduct can not detract from their character as taxable income to the recip- ients.)
- Vets. Just. Grp., LLC v. Sec'y of Vets. Affairs, 818 F.3d 1336 (Fed. Cir. 2016).published “reenactment of a statute - particularly without the slightest affirmative indication that congress ever had a particular decision before it - is an unreliable indicium at best.”
Show 187 more citing cases
- Gavin Polone v. Comm'r of Internal Revenue, 449 F.3d 1041 (9th Cir. 2006).published “the mere fact that payments were extracted from the wrongdoers as punishment for unlawful conduct can not detract from their character as taxable income to the recipients.”
- Am. Bankers Ins. Grp., Inc. v. United States, 308 F. Supp. 2d 1360 (S.D. Fla. 2004).published “re-enactment - particularly without the slightest affirmative indication that congress ever had the ... decision before it - is an unreliable indici- 1373 um at best.”
- Hernandez v. Comm'r, 75 T.C.M. 1714 (Tax Ct. 1998).unpublished(undeniable accessions to wealth, clearly realized, and over which the taxpayers have complete dominion)
- Keeler v. Harford Mut. Ins., 672 A.2d 1012 (Del. 1996).published “re-enactment-particularly without the slightest affirmative indication that congress ever had the previous decision before it-is an unreliable indicium at best.”
- Thermal Circuits, Inc., No. 33027-21 (Tax Ct. July 7, 2026).unpublished “accessions to wealth, clearly realized, and over which the taxpayers have complete dominion”
- Alvie N. Paschall & Patricia C. Paschall, No. 7382-24 (Tax Ct. June 4, 2026).unpublishedCommissioner v. Glenshaw Glass Co., 348 U.S. 426, 431 (1955).
- Jonathan D. Sawyer, No. 11758-21 (Tax Ct. Apr. 16, 2026).unpublished“accessions to wealth, clearly realized, and over which the taxpayers have complete dominion”
- Thermal Circuits, Inc., No. 33027-21 (Tax Ct. Mar. 30, 2026).unpublished “accessions to wealth, clearly realized, and over which the taxpayers have complete dominion”
- Mark Chernomordikov, No. 35205-21 (Tax Ct. Dec. 15, 2025).unpublishedUnreported income Gross income includes “all income from whatever source derived,” § 61(a), and thus includes all accessions to wealth over which the taxpayer has complete control, see Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 431…
- In re: Jordan Reese Clark & Kadri Clark, No. 25-00984 (Bankr. E.D.N.C. Dec. 1, 2025).The court’s approach in Curcio therefore aligns with the Supreme Court’s definition of “income” as “undeniable accessions to wealth, clearly realized, and over which the taxpayer has complete dominion.” Id. (citing Comm’r v. Glenshaw Glass…
- Beavis v. United States, No. 23-2222 (Fed. Cir. Oct. 23, 2025).unpublished Second, they contend that the Supreme Court’s decision in Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 431 (1955), defines “income” for all taxation purposes to mean “instances of undeniable accessions to wealth, clearly realized, and…
- Smith v. Dept. of Rev., No. TC-MD 250092R (Or. T.C. Aug. 22, 2025).unpublishedGross income includes “undeniable accessions to wealth, clearly realized, and over which the taxpayers have complete dominion.” Comm’r v. Glenshaw Glass Co., 348 US 426, 431 , 75 S DECISION TC-MD 250092R 2 Ct 473, 99 L Ed 483 (1955).
- Peter Joseph Isaiah Gibbons O'Connor, No. 21651-19 (Tax Ct. May 12, 2025).unpublishedHis great efforts to distinguish his arguments fail utterly. 5 In reaching his self-serving conclusions, the sole purpose of 5 To give just one example, petitioner argues: The case of Commissioner v. Glenshaw Glass Co. [ 348 U.S. 426, 431…
- Ana M. Franklin, No. 4970-22 (Tax Ct. Jan. 22, 2025).unpublished“accessions to wealth, clearly realized, and over which the taxpayers have complete dominion”
- Maureen F. Shoe, No. 22364-22 (Tax Ct. Dec. 23, 2024).unpublished“accessions to wealth, clearly realized, and over which the taxpayers have complete dominion [and control]”
- Jonathan Chang & Wei-Lin Chang, No. 6161-22 (Tax Ct. Sept. 16, 2024).unpublishedCommissioner v. Glenshaw Glass Co., 348 U.S. 426, 431 (1955).
- Moore v. United States, 602 U.S. 572 (2024).published And we have also used the term “realized” in cases involving a tax on accumulated corporate earnings, Ivan Allen Co. v. United States, 422 U. S. 617 , 627-629 (1975), debt discharge, United States v. Kirby Lumber Co., 284 U. S. 1, 3 (1931)…
- Arizona, State of v. United States Internal Revenue Serv., No. 2:24-cv-00355 (D. Ariz. Apr. 5, 2024).In light of the United States’ own || considerable and independent right to tax Arizonans who are also United States citizens, 13 || U.S. v. Burke, 504 U.S. 229, 233 (1992) (quoting Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 431 (19…
- James Elbert Aldridge, Jr. & Shirley Lorraine Aldridge, No. 13742-10 (Tax Ct. Feb. 21, 2024).unpublished“accessions to wealth, clearly realized, and over which the taxpayers have complete dominion”
- Ginsburg v. United States, 136 Fed. Cl. 1 (Fed. Cl. 2018).published
- Rayner v. CIR, No. 02-60565 (5th Cir. Aug. 26, 2003).unpublished
- Nat'l Labor Relations Bd. v. Bell Aerospace Co., 416 U.S. 267 (1974).published
- Lukhard v. Reed, 481 U.S. 368 (1987).published
- Comm'r v. Indianapolis Power & Light Co., 493 U.S. 203 (1990).published
- United States v. Burke, 504 U.S. 229 (1992).published
- Maurie Starrels & Doris W. Starrels v. Comm'r of Internal Revenue, 304 F.2d 574 (9th Cir. 1962).published
- Micron Tech., Inc. v. United States, 243 F.3d 1301 (Fed. Cir. 2001).published
- Callahan v. Comm'r, 105 T.C.M. 1775 (Tax Ct. 2013).unpublished
- Powers v. Comm'r, 105 T.C.M. 1798 (Tax Ct. 2013).unpublished
- Mingo v. Comm'r, 105 T.C.M. 1857 (Tax Ct. 2013).unpublished
- Title Ins.. Co. v. State Bd. of Equalization, 842 P.2d 121 (Cal. 1992).published
- Halfacre v. Paragon Bridge & Steel Co., 118 N.W.2d 455 (Mich. 1962).published
- Beamer v. Franchise Tax Bd., 563 P.2d 238 (Cal. 1977).published
- Jana Renea Henson v. Comm'r, 2014 T.C. Summary Opinion 36 (Tax Ct. 2014).unpublished
- Debough v. Comm'r, 142 T.C. 297 (Tax Ct. 2014).published
- In the Interest of the Child. of Knight, 2014 OK CIV APP 2, 317 P.3d 210.published
- Shankar v. Comm'r, 143 T.C. 140 (Tax Ct. 2014).published
- Maehr v. United States, No. 17-1000 (Fed. Cl. Apr. 30, 2018).published
- Milenbach v. Comm'r, 106 T.C. 184 (Tax Ct. 1996).published
- Herbel v. Comm'r, 106 T.C. 392 (Tax Ct. 1996).published
- Michael James Wells & Lynn Anita Kirchner-Wells v. Comm'r, T.C. Memo. 2018-188 (Tax Ct. 2018).unpublished
- Florida Progress Corp. & Subsidiaries v. Comm'r, 114 T.C. No. 36 (Tax Ct. 2000).
- Hillman v. Comm'r, 118 T.C. 323 (Tax Ct. 2002).published
- Wallace v. Comm'r, 128 T.C. 132 (Tax Ct. 2007).published
- Cadwell v. Comm'r, 136 T.C. 38 (Tax Ct. 2011).published
- Tempel v. Comm'r, 136 T.C. 341 (Tax Ct. 2011).published
- Maines v. Comm'r, 144 T.C. 123 (Tax Ct. 2015).published
- Celia Mazzei v. Comm'r, 150 T.C. No. 7 (Tax Ct. 2018).
- Mohammad Najafpir v. Comm'r, T.C. Memo. 2018-103 (Tax Ct. 2018).unpublished
- Jin Man Park v. Comm'r, 2018 T.C. Summary Opinion 46 (Tax Ct. 2018).unpublished
- Wayne R. Felton & Deodra J. Felton v. Comm'r, T.C. Memo. 2018-168 (Tax Ct. 2018).unpublished
- Christopher John Totten v. Comm'r, 2019 T.C. Summary Opinion 1 (Tax Ct. 2019).unpublished
- James Clay & Audrey Osceola v. Comm'r, 152 T.C. No. 13 (Tax Ct. 2019).
- Keith A. Bolles & Shelley R. Bolles v. Comm'r, T.C. Memo. 2019-42 (Tax Ct. 2019).unpublished
- Lily Hilda Soltani-Amadi & Bahman Justin Amadi v. Comm'r, 2019 T.C. Summary Opinion 19 (Tax Ct. 2019).unpublished
- Michael James Wells & Lynn Anita Kirchner-Wells v. Comm'r, T.C. Memo. 2019-134 (Tax Ct. 2019).unpublished
- Bertram Russell v. Comm'r, T.C. Memo. 2019-146 (Tax Ct. 2019).unpublished
- United States v. James Wright, No. 18-4087 (6th Cir. Dec. 19, 2019).unpublished
- In re: Lynette Kapsinow, No. 18-94 (R.I. Dec. 11, 2019).published
- Kovacs v. Comm'r, 100 T.C. 124 (Tax Ct. 1993).published
- Downey v. Comm'r, 100 T.C. 634 (Tax Ct. 1993).published
- Robinson v. Comm'r, 102 T.C. 116 (Tax Ct. 1994).published
- Wilfredo E. Rivera & Maria T. Rivera v. Comm'r, T.C. Memo. 2020-7 (Tax Ct. 2020).unpublished
- Fla. Progress Corp. v. Comm'r, 114 T.C. 587 (Tax Ct. 2000).published
- Reeves v. Comm'r, 71 T.C. 727 (Tax Ct. 1979).published
- Goldstein v. Comm'r, 73 T.C. 164 (Tax Ct. 1979).published
- Green v. Comm'r, 74 T.C. 1229 (Tax Ct. 1980).published
- Richardson v. Comm'r, 76 T.C. 512 (Tax Ct. 1981).published
- Bailey v. Comm'r, 88 T.C. 1293 (Tax Ct. 1987).published
- Truesdell v. Comm'r, 89 T.C. 1280 (Tax Ct. 1987).published
- Recklitis v. Comm'r, 91 T.C. 874 (Tax Ct. 1988).published
- Ashland Oil, Inc. v. Comm'r, 95 T.C. 348 (Tax Ct. 1990).published
- Ianniello v. Comm'r, 98 T.C. 165 (Tax Ct. 1992).published
- Kansas City S. Indus. v. Comm'r, 98 T.C. 242 (Tax Ct. 1992).published
- Nikta Fatemeh Abdolrahim & Melvin Collins v. Comm'r, T.C. Memo. 2020-50 (Tax Ct. 2020).unpublished
- Burt Kroner v. Comm'r, T.C. Memo. 2020-73 (Tax Ct. 2020).unpublished
- James A. Lloyd v. Comm'r, T.C. Memo. 2020-92 (Tax Ct. 2020).unpublished
- Robert J. Belanger v. Comm'r, T.C. Memo. 2020-130 (Tax Ct. 2020).unpublished
- United States v. Clark, 990 F.3d 404 (5th Cir. 2021).published
- Arellano v. McDonough, 1 F.4th 1059 (Fed. Cir. 2021).published
- Genecure, L.L.C., Frank Y. Tung, Tax Matters Partner, No. 14916-15 (Tax Ct. May 23, 2022).unpublished
- David Gilmartin, No. 21604-18 (Tax Ct. June 23, 2022).unpublished
- In re State, 904 A.2d 619 (N.H. 2006).published
- Lakeisha Degourville, No. 4369-16 (Tax Ct. Sept. 12, 2022).unpublished
- William T. Ashford, No. 17590-18 (Tax Ct. Sept. 29, 2022).unpublished
- DeAngelis v. Comm'r, 574 F.3d 789 (2d Cir. 2009).published
- Jennifer Joy Fields & Walter T. Fields, No. 2925-20 (Tax Ct. Nov. 10, 2022).unpublished
- Vogel Fertilizer Co. v. United States, 225 Ct. Cl. 15 (Ct. Cl. 1980).published
- Robert Lewis Starer & Merle Ann Starer, No. 615-13 (Tax Ct. Dec. 20, 2022).unpublished
- Claude Franklin Sanders, No. 14986-19 (Tax Ct. June 14, 2023).unpublished
- Fernando Ponce & Natalie Ponce, No. 24985-21 (Tax Ct. July 18, 2023).unpublished
- In re Howard Juntoff, 76 F.4th 480 (6th Cir. 2023).published
- Joshua Jarrett v. United States, 79 F.4th 675 (6th Cir. 2023).published
- Stephen R. Kelley & Isabelle Kelley, No. 15069-19 (Tax Ct. Oct. 23, 2023).unpublished
- John Legoski, No. 2542-20 (Tax Ct. May 26, 2021).unpublished
- Blossom Day Care Centers, Inc., No. 3868-12 (Tax Ct. July 13, 2021).unpublished
- Blossom Day Care Centers, Inc., No. 3869-12 (Tax Ct. July 13, 2021).unpublished
- Andrew McNulty & Donna McNulty, No. 1377-19 (Tax Ct. Nov. 18, 2021).published
- In re: Anthony Scott Levandowski, No. 4:22-cv-02781 (N.D. Cal. Mar. 14, 2023).
- Rische v. United States, No. 2:20-cv-00033 (W.D. Wash. July 8, 2021).
- Vincent J. Fumo, No. 17614-13 (Tax Ct. Sept. 24, 2025).unpublished
- Vincent J. Fumo, No. 17614-13 (Tax Ct. Jan. 14, 2026).unpublished
- Jabir Algarawi & Amira Hachim, No. 6824-24 (Tax Ct. Jan. 26, 2026).unpublished
- Myrna Marin, No. 6381-24 (Tax Ct. Sept. 2, 2026).unpublished
- John W. Sprouse, No. 17017-23 (Tax Ct. Sept. 2, 2026).unpublished
- Nathel v. Comm'r, 615 F.3d 83 (2d Cir. 2010).published
- Mark D. Collins v. Comm'r of Internal Revenue, 3 F.3d 625 (2d Cir. 1993).published
- Snyder v. Indiana Dep't of State Revenue, 723 N.E.2d 487 (Ind. T.C. 2000).published
- Stadnyk v. Comm'r, 367 F. App'x 586 (6th Cir. 2010).unpublished
- Lyszkowski v. Comm'r, 69 T.C.M. 2751 (Tax Ct. 1995).unpublished
- Uniquest Del. LLC v. United States, 294 F. Supp. 3d 107 (W.D.N.Y. 2018).published
- James v. United States, 366 U.S. 213 (1961).published
- Preslar v. Comm'r, 167 F.3d 1323 (10th Cir. 1999).published
- William Simmons & Viola Simmons, His Wife v. United States, 308 F.2d 160 (4th Cir. 1962).published
- United States v. Mabel Davis James, 333 F.2d 748 (9th Cir. 1964).published
- United States v. Dorothy R. Garber, 607 F.2d 92 (5th Cir. 1979).published
- Vukasovich, Inc. v. Comm'r of Internal Revenue, Vukasovich, Inc. v. Comm'r of Internal Revenue, 790 F.2d 1409 (9th Cir. 1986).published
- Joe E. Faris, Mary A. Faris v. Comm'r of Internal Revenue, 937 F.2d 616 (10th Cir. 1991).unpublished
- Houston Indus. Inc. & Subsidiaries v. United States, 125 F.3d 1442 (Fed. Cir. 1997).published
- Karns Prime & Fancy Food, Ltd. v. Comm'r, 494 F.3d 404 (3d Cir. 2007).published
- In Re Dowling, 415 B.R. 740 (Bankr. N.D. Cal. 2009).published
- Humble Oil & Refining Co. v. Calvert, 478 S.W.2d 926 (Tex. 1972).published
- Shelley v. Kendall (In Re Shelley), 184 B.R. 356 (B.A.P. 9th Cir. 1995).published
- In Re Rodriguez, 387 B.R. 76 (Bankr. E.D.N.Y. 2008).published
- United States v. Diehl, 460 F. Supp. 1282 (S.D. Tex. 1978).published
- R Ball for R Ball III by Appt v. Comm'r of IRS, 742 F.3d 552 (3d Cir. 2014).published
- Ruff v. Dept. of Revenue, Tc-Md 060814d (or.tax 9-30-2008), No. TC-MD 060814D (Or. T.C. Sept. 30, 2008).published
- Ghadiri v. Comm'r, 72 T.C.M. 1383 (Tax Ct. 1996).unpublished
- Chu v. Comm'r, 72 T.C.M. 1519 (Tax Ct. 1996).unpublished
- Fitzpatrick v. Comm'r, 73 T.C.M. 2479 (Tax Ct. 1997).unpublished
- Estrada v. Comm'r, 73 T.C.M. 2585 (Tax Ct. 1997).unpublished
- Boone v. Comm'r, 74 T.C.M. 945 (Tax Ct. 1997).unpublished
- Sochia v. Comm'r, 76 T.C.M. 264 (Tax Ct. 1998).unpublished
- AJF Transp. Consultants, Inc. v. Comm'r, 77 T.C.M. 1244 (Tax Ct. 1999).unpublished
- Havens v. Comm'r, 77 T.C.M. 1829 (Tax Ct. 1999).unpublished
- Friscia Constr., Inc. v. Comm'r, 79 T.C.M. 2181 (Tax Ct. 2000).unpublished
- Hernandez v. Comm'r, 2001 T.C. Summary Opinion 9 (Tax Ct. 2001).unpublished
- Kling v. Comm'r, 81 T.C.M. 1448 (Tax Ct. 2001).unpublished
- Westpac Pac. Foods v. Comm'r, 82 T.C.M. 175 (Tax Ct. 2001).unpublished
- Whittaker v. Comm'r, 82 T.C.M. 447 (Tax Ct. 2001).unpublished
- Rosario v. Comm'r, 83 T.C.M. 1376 (Tax Ct. 2002).unpublished
- Merritt v. Comm'r, 85 T.C.M. 1550 (Tax Ct. 2003).unpublished
- Perry Funeral Home, Inc. v. Comm'r, 86 T.C.M. 713 (Tax Ct. 2003).unpublished
- Cavender v. Comm'r, 87 T.C.M. 956 (Tax Ct. 2004).unpublished
- Est. of Frances Elaine Freedman v. Comm'r, 93 T.C.M. 1007 (Tax Ct. 2007).unpublished
- V.R. Deangelis M.D.P.C. v. Comm'r, 94 T.C.M. 526 (Tax Ct. 2007).unpublished
- Cromley v. Comm'r, 96 T.C.M. 42 (Tax Ct. 2008).unpublished
- West v. Comm'r, 102 T.C.M. 517 (Tax Ct. 2011).unpublished
- Machacek v. Comm'r, 111 T.C.M. 1248 (Tax Ct. 2016).unpublished
- Penn Mut. Indem. Co. v. Comm'r, 32 T.C. 653 (Tax Ct. 1959).published
- John B. White, Inc. v. Comm'r, 55 T.C. 729 (Tax Ct. 1971).published
- Bradley v. Comm'r, 57 T.C. 1 (Tax Ct. 1971).published
- Zarin v. Comm'r, 92 T.C. 1084 (Tax Ct. 1989).published
- Anderson v. Comm'r, 69 T.C.M. 1609 (Tax Ct. 1995).unpublished
- Warden v. Comm'r, 55 T.C.M. 632 (Tax Ct. 1988).unpublished
- Marcus v. Comm'r, 63 T.C.M. 2810 (Tax Ct. 1992).unpublished
- O'Sheeran v. Comm'r, 47 T.C.M. 405 (Tax Ct. 1983).unpublished
- Purvis v. Comm'r, 46 T.C.M. 593 (Tax Ct. 1983).unpublished
- Wilson v. Comm'r, 58 T.C.M. 880 (Tax Ct. 1989).unpublished
- Sullivan v. Comm'r, 46 T.C.M. 1271 (Tax Ct. 1983).unpublished
- Synanon Church v. Comm'r, 57 T.C.M. 602 (Tax Ct. 1989).unpublished
- Hoffman v. Comm'r, 57 T.C.M. 1150 (Tax Ct. 1989).unpublished
- Miller v. Comm'r, 56 T.C.M. 1553 (Tax Ct. 1989).unpublished
- Stovall v. Comm'r, 46 T.C.M. 894 (Tax Ct. 1983).unpublished
- Sproul v. Comm'r, 69 T.C.M. 2588 (Tax Ct. 1995).unpublished
- McCrevan v. Comm'r, 34 T.C.M. 731 (Tax Ct. 1975).unpublished
- Scallen v. Comm'r, 54 T.C.M. 177 (Tax Ct. 1987).unpublished
- Rasheed v. Comm'r, 50 T.C.M. 225 (Tax Ct. 1985).unpublished
- Gannon v. Comm'r, 39 T.C.M. 1261 (Tax Ct. 1980).unpublished
- Zell v. Comm'r, 47 T.C.M. 1371 (Tax Ct. 1984).unpublished
- Darvishian v. Comm'r, 57 T.C.M. 259 (Tax Ct. 1989).unpublished
- Guardianship of Fink v. Comm'r, 48 T.C.M. 1187 (Tax Ct. 1984).unpublished
- Taylor v. Comm'r, 41 T.C.M. 696 (Tax Ct. 1981).unpublished
- Berenbeim v. Comm'r, 63 T.C.M. 2975 (Tax Ct. 1992).unpublished
- Charles Moore v. United States, 36 F.4th 930 (9th Cir. 2022).published
- Houston Indus. Inc. v. United States, 32 Fed. Cl. 202 (Fed. Cl. 1994).published
- United States v. Hopkins, 927 F. Supp. 2d 1120 (D.N.M. 2013).published
- United States v. Overton, 617 F. Supp. 5 (W.D. Mich. 1985).published
- Charles Moore v. USA, No. 20-36122 (9th Cir. Nov. 22, 2022).published
- Sedgewick v. Dept. of Rev., No. TC-MD 170205G (Or. T.C. July 31, 2018).unpublished
- Comm'r of Internal Revenue v. Sol Minzer & Adele Minzer, 279 F.2d 338 (5th Cir. 1960).published
- Snyder v. Internal Revenue Serv., 596 F. Supp. 240 (N.D. Ind. 1984).published
- Cameron v. Internal Revenue Serv., 593 F. Supp. 1540 (N.D. Ind. 1984).published
- Lansden v. Marsh, 961 F. Supp. 1143 (M.D. Tenn. 1997).published
- Foryan v. Comm'r, 109 T.C.M. 1591 (Tax Ct. 2015).unpublished
- Zentmyer v. Comm'r, 114 T.C.M. 409 (Tax Ct. 2017).unpublished
- Holt v. New Mexico Dep't of Taxation & Revenue, 2002-NMSC-034, 59 P.3d 491.published
At page 430 Broad construction of gross income under section 2289 citing cases“in recognition of the intention of congress to tax all gains except those specifically exempted.”
- Franklin v. Haak, No. 1:19-cv-10137 (E.D. Mich. Nov. 6, 2020).([Plaintiff] has a liberal discovery right to determine the extent to which Defendants allegedly commingled and misused corporate funds . . . But if [Plaintiff] is dissatisfied with Defendants' discovery responses, his…)
- Murphy v. Internal Revenue Serv., 493 F.3d 170 (D.C. Cir. 2007).published (the Court has given a liberal construction to [“gross income”] in recognition of the intention of Congress to tax all gains except those specifically exempted)
- CF Headquarters Corp., No. 22321-12 (Tax Ct. Mar. 4, 2025).publishedCommissioner v. Schleier, 515 U.S. 323 , 327-28 (1995); Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 430 (1955).
- Kenneth Steven Tuma, Sr. & Deborah Ann Tuma, No. 18978-19 (Tax Ct. July 11, 2024).unpublishedSee § 61(a)(9), (11); Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 430 (1955).
- Johnathon P. Abair & Tiffany D. Abair, No. 26874-21 (Tax Ct. Apr. 10, 2024).unpublishedCommissioner v. Schleier, 515 U.S. 323 , 327-28 (1995); Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 430 (1955).
- Kristen L. Quevy, No. 13319-21 (Tax Ct. Dec. 19, 2023).unpublishedCommissioner v. Schleier, 515 U.S. 323 , 327–28 (1995); Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 430 (1955).
- Kristen L. Quevy, No. 13319-21 (Tax Ct. Dec. 12, 2023).unpublishedCommissioner v. Schleier, 515 U.S. 323 , 327–28 (1995); Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 430 (1955).
- Norfolk & W. Ry. Co. v. Liepelt, 444 U.S. 490 (1980).published
- George L. Vaughn v. Comm'r Internal Revenue Serv., 15 F.3d 1095 (9th Cir. 1993).unpublished
- Louise F. Young, A/K/A Louise Y. Ausman James R. Ausman v. Comm'r of Internal Revenue, John B. Young Martha H. Young v. Comm'r of Internal Revenue, 240 F.3d 369 (4th Cir. 2001).published
Show 76 more citing cases
- Young v. Comm'r IRS, 240 F.3d 369 (4th Cir. 2001).published
- Comm'r v. Dunkin, 500 F.3d 1065 (9th Cir. 2007).published
- Dept. of Rev. v. Faris, 19 Or. Tax 357 (Or. T.C. 2007).published
- Ginsburg v. United States, 136 Fed. Cl. 1 (Fed. Cl. 2018).published
- Specking v. Comm'r, 117 T.C. 95 (Tax Ct. 2001).published
- Roco v. Comm'r, 121 T.C. 160 (Tax Ct. 2003).published
- Campbell v. Comm'r, 134 T.C. 20 (Tax Ct. 2010).published
- Ritter v. Comm'r, 114 T.C.M. 352 (Tax Ct. 2017).unpublished
- Kevin E. Rushing v. Comm'r, T.C. Memo. 2018-23 (Tax Ct. 2018).unpublished
- Yasmin Azam & Muhammad Ayub Azam v. Comm'r, T.C. Memo. 2018-72 (Tax Ct. 2018).unpublished
- Jesse M. Loughman & Desa C. Loughman v. Comm'r, T.C. Memo. 2018-85 (Tax Ct. 2018).unpublished
- Marc White & Kelly White v. Comm'r, T.C. Memo. 2018-102 (Tax Ct. 2018).unpublished
- Philip N. Rose & Leanna Rose v. Comm'r, T.C. Memo. 2019-73 (Tax Ct. 2019).unpublished
- Kevin M. Tabe & Theresia Z. Tabe v. Comm'r, T.C. Memo. 2019-149 (Tax Ct. 2019).unpublished
- Berger v. Comm'r, 76 T.C. 687 (Tax Ct. 1981).published
- Roemer v. Comm'r, 79 T.C. 398 (Tax Ct. 1982).published
- Martin v. Comm'r, 90 T.C. 1078 (Tax Ct. 1988).published
- Macior v. Comm'r, 48 T.C.M. 91 (Tax Ct. 1984).unpublished
- James Clay v. Comm'r of Internal Revenue, 990 F.3d 1296 (11th Cir. 2021).published
- McManus v. Dep't of Revenue, 283 N.W.2d 576 (Wis. 1979).published
- Springfield Street Ry. Co. v. United States, 217 Ct. Cl. 89 (Ct. Cl. 1978).published
- Josef Haghnazarzadeh & Catherine Y. Haghnazarzadeh, No. 27031-17 (Tax Ct. Apr. 29, 2021).unpublished
- Dion E. Monroe & Kim M. Monroe, No. 16305-17 (Tax Ct. Aug. 11, 2021).unpublished
- William Howard Peak, No. 10444-20 (Tax Ct. Nov. 10, 2021).unpublished
- Kiczuk v. United States, 666 F. Supp. 3d 180 (D. Conn. 2023).published
- Mark A. Kelly & Vanessa C. Kelly, No. 18-60514 (Bankr. N.D.N.Y. Dec. 14, 2021).
- Steven C. Hoover & Sandra L. Medlin, No. 17177-19 (Tax Ct. July 21, 2025).unpublished
- Comm'r v. LoBue, 351 U.S. 243 (1956).published
- Nathel v. Comm'r, 615 F.3d 83 (2d Cir. 2010).published
- Cole v. Comm'r, 637 F.3d 767 (7th Cir. 2011).published
- United States v. Sherrill O. & Doris M. Woodall, Husband & Wife, United States of Am. v. Glenn S. & Margaret H. Mills, Husband & Wife, 255 F.2d 370 (10th Cir. 1958).published
- Edward C. Heard & Cora L. Heard v. Comm'r of Internal Revenue, 326 F.2d 962 (8th Cir. 1964).published
- James J. Ritter v. The United States, 393 F.2d 823 (Ct. Cl. 1968).published
- Charles W. Ireland & Carolyn P. Ireland v. United States, 621 F.2d 731 (5th Cir. 1980).published
- W.L. Hardee & Elnora L. Hardee v. The United States, 708 F.2d 661 (Fed. Cir. 1983).published
- Carol M. Herbert & Henry W. Herbert v. United States, 850 F.2d 32 (2d Cir. 1988).published
- Mark D. Collins v. Comm'r of Internal Revenue, 3 F.3d 625 (2d Cir. 1993).published
- Albert J. Taggi & Ann D. Taggi v. United States, 35 F.3d 93 (2d Cir. 1994).published
- Kelly M. O'gilvie, Plaintiff-Appellant/cross-Appellee v. United States of Am., Defendant-Appellee/cross-Appellant. United States of Am. v. Kevin M. O'gilvie, Stephanie L. O'Gilvie, 66 F.3d 1550 (10th Cir. 1995).published
- Daniel C. Greer v. United States, 207 F.3d 322 (6th Cir. 2000).published
- David A. Raymond & Lori Raymond v. United States, 355 F.3d 107 (2d Cir. 2004).published
- Herbert v. United States, 662 F. Supp. 573 (S.D.N.Y. 1987).published
- Fed. Employees'Distrib. Co. v. United States, 206 F. Supp. 330 (S.D. Cal. 1962).published
- In Re Elder-Beerman Stores Corp., 207 B.R. 548 (Bankr. S.D. Ohio 1997).published
- In Re Fleming, 258 B.R. 488 (Bankr. M.D. Fla. 2000).published
- Snyder v. Indiana Dep't of State Revenue, 723 N.E.2d 487 (Ind. T.C. 2000).published
- Jones v. United States, 551 F. Supp. 578 (N.D.N.Y. 1982).published
- Raymond v. United States, 247 F. Supp. 2d 548 (D. Vt. 2002).published
- Kinuthia v. Comm'r, 107 T.C.M. 1618 (Tax Ct. 2014).unpublished
- Stadnyk v. Comm'r, 367 F. App'x 586 (6th Cir. 2010).unpublished
- Marretta v. Comm'r IRS, 168 F. App'x 528 (3d Cir. 2006).unpublished
- Vazquez v. Comm'r, 73 T.C.M. 2016 (Tax Ct. 1997).unpublished
- Merker v. Comm'r, 73 T.C.M. 3087 (Tax Ct. 1997).unpublished
- Campbell v. Comm'r, 74 T.C.M. 1121 (Tax Ct. 1997).unpublished
- Wilkerson v. Comm'r, 2001 T.C. Summary Opinion 63 (Tax Ct. 2001).unpublished
- Khen Thi & Hong Van Huynh v. Comm'r, 2001 T.C. Summary Opinion 131 (Tax Ct. 2001).unpublished
- Dashiell v. Comm'r, 88 T.C.M. 264 (Tax Ct. 2004).unpublished
- Bunker v. Comm'r, 2005 T.C. Summary Opinion 35 (Tax Ct. 2005).unpublished
- Everhart v. Comm'r, 2005 T.C. Summary Opinion 81 (Tax Ct. 2005).unpublished
- Remos v. Comm'r, 2005 T.C. Summary Opinion 98 (Tax Ct. 2005).unpublished
- Clemons v. Comm'r, 2005 T.C. Summary Opinion 109 (Tax Ct. 2005).unpublished
- Adams v. Comm'r, 2005 T.C. Summary Opinion 120 (Tax Ct. 2005).unpublished
- Jerose v. Comm'r, 2005 T.C. Summary Opinion 132 (Tax Ct. 2005).unpublished
- Scott v. Comm'r, 2006 T.C. Summary Opinion 16 (Tax Ct. 2006).unpublished
- Lewis v. Comm'r, 2006 T.C. Summary Opinion 12 (Tax Ct. 2006).unpublished
- Huisenfeldt v. Comm'r, 2006 T.C. Summary Opinion 5 (Tax Ct. 2006).unpublished
- Williams v. Comm'r, 35 T.C. 685 (Tax Ct. 1961).published
- Kelley v. Comm'r, 62 T.C. 131 (Tax Ct. 1974).published
- Matarese v. Comm'r, 34 T.C.M. 791 (Tax Ct. 1975).unpublished
- Marshall v. Comm'r, 56 T.C.M. 1006 (Tax Ct. 1989).unpublished
- Lyszkowski v. Comm'r, 69 T.C.M. 2751 (Tax Ct. 1995).unpublished
- Slattery v. United States, 16 Cl. Ct. 79 (Ct. Cl. 1988).published
- Pipitone v. United States, 180 F.3d 859 (7th Cir. 1999).published
- Smith v. Internal Revenue Serv., 168 F. Supp. 3d 1221 (D. Ariz. 2016).published
- Uniquest Del. LLC v. United States, 294 F. Supp. 3d 107 (W.D.N.Y. 2018).published
- Kelly v. United States, 703 F. Supp. 55 (N.D. Ill. 1989).published
At page 429 Determining if punitive damages constitute gross income66 citing cases“the full measure of its taxing power.”
- Molinari v. Jockey's Guild, Inc., No. 1:24-cv-12293 (D. Mass. July 30, 2025). See Comm’r v. Glenshaw Glass Co., 348 U.S. 426, 431 (1955) (“The mere fact that the payments were extracted from the wrongdoers as punishment for unlawful conduct cannot detract from their character as taxable income to the recipients.”).
- Andre Jackson, No. 7062-25 (Tax Ct. Sept. 28, 2026).unpublishedCommissioner v. Schleier, 515 U.S. 323, 328 (1995); Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 429 (1955); Helvering v. Clifford, 309 U.S. 331, 334 (1940).
- Thermal Circuits, Inc., No. 33027-21 (Tax Ct. July 7, 2026).unpublished Section 61(a) defines gross income as “all income from whatever source derived.” Gross income is construed broadly to include all “accessions to wealth, clearly realized, and over which the taxpayers have complete dominion.” Commissioner v…
- Thermal Circuits, Inc., No. 33027-21 (Tax Ct. Mar. 30, 2026).unpublished Section 61(a) defines gross income as “all income from whatever source derived.” Gross income is construed broadly to include all “accessions to wealth, clearly realized, and over which the taxpayers have complete dominion.” Commissioner v…
- Beavis v. United States, No. 23-2222 (Fed. Cir. Oct. 23, 2025).unpublished Second, they contend that the Supreme Court’s decision in Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 431 (1955), defines “income” for all taxation purposes to mean “instances of undeniable accessions to wealth, clearly realized, and…
- Cerissa Rene Fortune-Paladino, No. 4975-23 (Tax Ct. Oct. 2, 2025).unpublishedTaxability of Settlement Proceeds Section 61(a) defines gross income as “all income from whatever source derived.” Commissioner v. Schleier, 515 U.S. 323, 327 (1995); Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 429 (1955).
- Norwich Com. Grp., Inc., No. 8104-19 (Tax Ct. May 12, 2025).unpublishedClaim of Right Doctrine “[G]ross income means all income from whatever source derived,” including “[g]ross income derived from business.” I.R.C. § 61(a)(2); Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 429 (1955).
- Joseph J. Zajac, III, No. 1886-15 (Tax Ct. Apr. 10, 2025).unpublishedSettlement Proceeds A. Legal Standards Section 61(a) provides that “gross income means all income from whatever source derived.” The corollary to the “sweeping scope” of this section, Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 429 (…
- Anthony Scott Levandowski, No. 20-30242 (Bankr. N.D. Cal. Jan. 24, 2025).The court in Glenshaw Glass 22 found that the payment at issue represented a clearly realized 23 24 32 IRC § 61(a)(11). 25 33 Comm’r v. Schleier, 515 U.S. 323, 327-28 (1995) (citing, among other cases, Comm’r v. Glenshaw Glass Co., 348 U.S…
- Justin M. Maderia, No. 15106-21 (Tax Ct. May 9, 2024).unpublishedI.R.C. § 61(a); Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 429 (1955).
Show 52 more citing cases
- Comm'r v. Kowalski, 434 U.S. 77 (1977).published
- Comm'r v. Schleier, 515 U.S. 323 (1995).published
- Comm'r v. Banks, 543 U.S. 426 (2005).published
- United States v. Dale King De Bonchamps, United States of Am. v. Winston S. Cowgill & Geraldine King Cowgill, United States of Am. v. Ada N. King, 278 F.2d 127 (9th Cir. 1960).published
- United Grocers, Ltd. v. United States, 308 F.2d 634 (9th Cir. 1962).published
- In Re Grace Lilly, Debtor. Grace Lilly v. Internal Revenue Serv., in Re Grace Lilly, Debtor. Grace Lilly v. Internal Revenue Serv., 76 F.3d 568 (4th Cir. 1996).published
- Thibodeaux v. Comm'r, 2013 T.C. Summary Opinion 7 (Tax Ct. 2013).unpublished
- Tirfe v. Comm'r, 2013 T.C. Summary Opinion 42 (Tax Ct. 2013).unpublished
- Simpson v. Comm'r, 141 T.C. 331 (Tax Ct. 2013).published
- In Re Marriage of Gohde v. Gohde, 512 N.W.2d 199 (Wis. Ct. App. 1993).published
- Massachusetts Teachers Ass'n v. Sec'y of the Commonwealth, 424 N.E.2d 469 (Mass. 1981).published
- United States v. Venator, 568 F. Supp. 832 (N.D.N.Y. 1983).published
- Ktsanes v. Comm'r, 2014 T.C. Summary Opinion 85 (Tax Ct. 2014).unpublished
- Paul S. Lindsey, Jr. Kristen Lindsey v. Comm'r of Internal Revenue, 422 F.3d 684 (8th Cir. 2005).published
- Nordtvedt v. Comm'r, 116 T.C. 165 (Tax Ct. 2001).published
- Johnson v. Comm'r, 117 T.C. 204 (Tax Ct. 2001).published
- John A. Voigt & Lorinda C. Martin v. Comm'r, 2018 T.C. Summary Opinion 25 (Tax Ct. 2018).unpublished
- Donald L. Zinger & Nicole A. Zinger v. Comm'r, 2018 T.C. Summary Opinion 33 (Tax Ct. 2018).unpublished
- Jacques L. French & Sherry L. French v. Comm'r, 2018 T.C. Summary Opinion 36 (Tax Ct. 2018).unpublished
- Martha G. Smith & George S. Lakner v. Comm'r, T.C. Memo. 2018-127 (Tax Ct. 2018).unpublished
- Amas Canzoni v. Comm'r, T.C. Memo. 2018-130 (Tax Ct. 2018).unpublished
- Daniel R. Doyle & Lynn A. Doyle v. Comm'r, T.C. Memo. 2019-8 (Tax Ct. 2019).unpublished
- Jesus Rodriguez & Juanita Rodriguez v. Comm'r, 2019 T.C. Summary Opinion 4 (Tax Ct. 2019).unpublished
- Mary Bui v. Comm'r, T.C. Memo. 2019-54 (Tax Ct. 2019).unpublished
- Denise Celeste McMillan v. Comm'r, T.C. Memo. 2019-108 (Tax Ct. 2019).unpublished
- Kowalski v. Comm'r, 65 T.C. 44 (Tax Ct. 1975).published
- Lighthill v. Comm'r, 66 T.C. 940 (Tax Ct. 1976).published
- Zager v. Comm'r, 72 T.C. 1009 (Tax Ct. 1979).published
- Huff v. Comm'r, 80 T.C. 804 (Tax Ct. 1983).published
- Gajewski v. Comm'r, 84 T.C. 980 (Tax Ct. 1985).published
- Dorothea E. Beckett v. Comm'r, 2020 T.C. Summary Opinion 19 (Tax Ct. 2020).unpublished
- Mark Weiderman & Jennifer Weiderman v. Comm'r, T.C. Memo. 2020-109 (Tax Ct. 2020).unpublished
- Larry T. Williams, No. 939-20 (Tax Ct. Feb. 7, 2022).unpublished
- Edward Westwealth Lew, No. 20747-19 (Tax Ct. Feb. 9, 2022).unpublished
- Pennzoil-quaker State Co. & Subsidiaries v. United States, 62 Fed. Cl. 689 (Fed. Cl. 2004).published
- United States v. De Bonchamps, 278 F.2d 127 (9th Cir. 1960).published
- Bryant D. Tillman-Kelly & Melanie Tillman-Kelly, No. 6127-20 (Tax Ct. Nov. 21, 2022).unpublished
- San Juan Trading Co. v. Sec'y of the Treasury, 80 P.R. 778 (1958).published
- San Juan Trading Co. v. Secretario de Hacienda, 80 P.R. Dec. 807 (1958).published
- Tyrone Burnett, No. 6818-20 (Tax Ct. Apr. 10, 2023).unpublished
- William Henry McGhee, No. 24587-21 (Tax Ct. July 26, 2023).unpublished
- Robert R. Doggart, No. 6928-21 (Tax Ct. July 27, 2023).unpublished
- Luminita Roman, No. 10878-16 (Tax Ct. Nov. 28, 2023).unpublished
- Timothy Stassi & Cindy Stassi, No. 4179-18 (Tax Ct. Feb. 8, 2021).unpublished
- Konstantin Anikeev & Nadezhda Anikeev, No. 13080-17 (Tax Ct. Feb. 23, 2021).unpublished
- Debra Jean Blum, No. 20020-17 (Tax Ct. Feb. 18, 2021).unpublished
- Ronald Gene Berry & Linda Kathryn Berry, No. 18635-16 (Tax Ct. Apr. 7, 2021).unpublished
- Andrew Mitchell Berry & Sara Berry, No. 18196-16 (Tax Ct. Apr. 7, 2021).unpublished
- Carol E. Holliday, No. 23296-17 (Tax Ct. June 7, 2021).unpublished
- Christian D. Silver, No. 8805-18 (Tax Ct. Aug. 9, 2021).unpublished
- Yerkes v. Weiss, No. 1:17-cv-02493 (D.N.J. Feb. 14, 2023).
- Maryland Attorney Gen. Opinion 95 OAG 056, No. 95 OAG 056 (Md. Att'y Gen. Feb. 23, 2010).published
At page 432 Maintaining broad scope of gross income definition12 citing casesThe definition of gross income has been simplified, but no effect upon its present broad scope was intended.
- Francisco v. United States, No. 00-1802 (3d Cir. Oct. 1, 2001). (The definition of gross income has been simplified, but no effect upon its present broad scope was intended.)
- Charles Francisco Cecilia Francisco v. United States, 267 F.3d 303 (3d Cir. 2001).published “the definition of gross income has been simplified, but no effect upon its present broad scope was intended.”
- Roemer v. Comm'r, 79 T.C. 398 (Tax Ct. 1982).published
- Lukhard v. Reed, 481 U.S. 368 (1987).published
- United States v. Kaiser, 363 U.S. 299 (1960).published
- In Re Marriage of Rothrock, 159 Cal. App. 4th 223 (Cal. Ct. App. 2008).published
- Wentz v. Comm'r, 105 T.C. 1 (Tax Ct. 1995).published
- Roosevelt v. Comm'r, 43 T.C. 77 (Tax Ct. 1964).published
- Starr v. Comm'r, 46 T.C. 743 (Tax Ct. 1966).published
- Murphy v. Comm'r, 48 T.C. 569 (Tax Ct. 1967).published
Show 2 more citing cases
- NCA Argyle LP, Newport Capital Advisors, LLC, A Partner Other Than the Tax Matters Partner v. Comm'r, T.C. Memo. 2020-56 (Tax Ct. 2020).unpublished
- Herbert v. United States, 662 F. Supp. 573 (S.D.N.Y. 1987).published
The mere fact that payments were extracted from the wrongdoers as punishment for unlawful conduct can not detract from their character as taxable income to the recipients.
- Polone v. Comm'r, 505 F.3d 966 (9th Cir. 2007).published (The mere fact that payments were extracted from the wrongdoers as punishment for unlawful conduct can not detract from their character as taxable income to the recipients.)
- Gavin Polone v. Comm'r of Internal Revenue, 479 F.3d 1019 (9th Cir. 2007).published (The mere fact that payments were extracted from the wrongdoers as punishment for unlawful conduct can not detract from their character as taxable income to the recipients.)
- Gavin Polone v. Comm'r of Internal Revenue, 449 F.3d 1041 (9th Cir. 2006).published (The mere fact that payments were extracted from the wrongdoers as punishment for unlawful conduct can not detract from their character as taxable income to the recipients.)
At page 473 cited at this page1 citing case
- Smith v. Dept. of Rev., No. TC-MD 250092R (Or. T.C. Aug. 22, 2025).unpublishedGross income includes “undeniable accessions to wealth, clearly realized, and over which the taxpayers have complete dominion.” Comm’r v. Glenshaw Glass Co., 348 US 426, 431 , 75 S DECISION TC-MD 250092R 2 Ct 473, 99 L Ed 483 (1955).
Other citing cases
- Est. of Wesson v. United States, 843 F. Supp. 1119 (S.D. Miss. 1994).published
v.
Glenshaw Glass Co.
delivered the opinion of the Court.
This litigation involves two cases with independent factual backgrounds yet presenting the identical issue. The two cases were consolidated for argument before the Court of Appeals for the Third Circuit and were heard en banc. The common question is whether money received as exemplary damages for fraud or as the punitive two-thirds portion of a treble-damage antitrust recovery must be reported by a taxpayer as gross income under § 22 (a) of the Internal Revenue Code of 1939, [1] In a single opinion, 211 F. 2d 928, the Court of Appeals affirmed the Tax Court’s separate rulings in favor of the taxpayers. 18 T. C. 860; 19 T. C. 637. Because of the frequent recurrence of the question and differing interpretations by the lower courts of this Court’s decisions bearing upon the problem, we granted the Commissioner of Internal Revenue’s ensuing petition for certiorari. 348 U. S. 813.
The facts of the cases were largely stipulated and are not in dispute. So far as pertinent they are as follows:
Commissioner v. Glenshaw Glass Co. —The Glenshaw Glass Company, a Pennsylvania corporation, manufactures glass bottles and containers. It was engaged in protracted litigation with the Hartford-Empire Company, which manufactures machinery of a character used by Glenshaw. Among the claims advanced by Glenshaw[*428] were demands for exemplary damages for fraud [2] and treble damages for injury to its business by reason of Hartford’s violation of the federal antitrust laws. [3] In December, 1947, the parties concluded a settlement of all pending litigation, by which Hartford paid Glenshaw approximately $800,000. Through a method of allocation which was approved by the Tax Court, 18 T. C. 860, 870-872, and which is no longer in issue, it was ultimately determined that, of the total settlement, $324,529.94 represented payment of punitive damages for fraud and antitrust violations. Glenshaw did not report this portion of the settlement as income for the tax year involved. The Commissioner determined a deficiency claiming as taxable the entire sum less only deductible legal fees. As previously noted, the Tax Court and the Court of Appeals upheld the taxpayer.
Commissioner v. William Goldman Theatres, Inc.— William Goldman Theatres, Inc., a Delaware corporation operating motion picture houses in Pennsylvania, sued Loew’s, Inc., alleging a violation of the federal antitrust laws and seeking treble damages. After a holding that a violation had occurred, William Goldman Theatres, Inc. v. Loew’s, Inc., 150 F. 2d 738, the case was remanded to the trial court for a determination of damages. It was found that Goldman had suffered a loss of profits equal to $125,000 and was entitled to treble damages in the sum of $375,000. William Goldman Theatres, Inc. v. Loew’s, Inc., 69 F. Supp. 103, aff’d, 164 F. 2d 1021, cert. denied, 334 U. S. 811. Goldman reported only $125,000 of the recovery as gross income and claimed that the $250,000[*429] balance constituted punitive damages and as such was not taxable. The Tax Court agreed, 19 T. C. 637, and the Court of Appeals, hearing this with the Glenshaw case, affirmed. 211 F. 2d 928.
It is conceded by the respondents that there is no constitutional barrier to the imposition of a tax on punitive damages. Our question is one of statutory construction: are these payments comprehended by § 22 (a) ?
The sweeping scope of the controverted statute is readily apparent:
“SEC. 22. GROSS INCOME.
“(a) General Definition. — ‘Gross income’ includes gains, profits, and income derived from salaries, wages, or compensation for personal service ... of whatever kind and in whatever form paid, or from professions, vocations, trades, businesses, commerce, or sales, or dealings in property, whether real or personal, growing out of the ownership or use of or interest in such property; also from interest, rent, dividends, securities, or the transaction of any business carried on for gain or profit, or gains or profits and income derived from any source whatever. . . .” (Emphasis added.) [4]
This Court has frequently stated that this language was used by Congress to exert in this field “the full measure of its taxing power.” Helvering v. Clifford, 309 U. S. 331, 334; Helvering v. Midland Mutual Life Ins. Co., 300 U. S. 216, 223; Douglas v. Will cuts, 296 U. S. 1, 9; Irwin v. Gavit, 268 U. S. 161, 166. Respondents contend that punitive damages, characterized as “windfalls” flowing from the culpable conduct of third parties, are not within the scope of the section. But Congress applied no limitations as to the source of taxable receipts, nor restrictive[*430] labels as to their nature. And the Court has given a liberal construction to this broad phraseology in recognition of the intention of Congress to tax all gains except those specifically exempted. Commissioner v. Jacobson, 336 U. S. 28, 49; Helvering v. Stockholms Enskilda Bank, 293 U. S. 84, 87-91. Thus, the fortuitous gain accruing to a lessor by reason of the forfeiture of a lessee’s improvements on the rented property was taxed in Helvering v. Bruun, 309 U. S. 461. Cf. Robertson v. United States, 343 U. S. 711; Rutkin v. United States, 343 U. S. 130; United States v. Kirby Lumber Co., 284 U. S. 1. Such decisions demonstrate that we cannot but ascribe content to the catchall provision of § 22 (a), “gains or profits and income derived from any source whatever.” The importance of that phrase has been too frequently recognized since its first appearance in the Revenue Act of 1913 [5] to say now that it adds nothing to the meaning of “gross income.”
Nor can we accept respondents’ contention that a narrower reading of § 22 (a) is required by the Court’s characterization of income in Eisner v. Macomber, 252 U. S. 189, 207, as “the gain derived from capital, from labor, or from both combined.” [6] The Court was there endeavoring to determine whether the distribution of a corporate stock dividend constituted a realized gain to the shareholder, or changed “only the form, not the essence,” of[*431] his capital investment. Id., at 210. It was held that the taxpayer had “received nothing out of the company’s assets for his separate use and benefit.” Id., at 211. The distribution, therefore, was held not a taxable event. In that context — distinguishing gain from capital — the definition served a useful purpose. But it was not meant to provide a touchstone to all future gross income questions. Helvering v. Bruun, supra, at 468-469; United States v. Kirby Lumber Co., supra, at 3.
Here we have instances of undeniable accessions to wealth, clearly realized, and over which the taxpayers have complete dominion. The mere fact that the payments were extracted from the wrongdoers as punishment for unlawful conduct cannot detract from their character as taxable income to the recipients. Respondents concede, as they must, that the recoveries are taxable to the extent that they compensate for damages actually incurred. It would be an anomaly that could not be justified in the absence of clear congressional intent to say that a recovery for actual damages is taxable but not the additional amount extracted as punishment for the same conduct which caused the injury. And we find no such evidence of intent to exempt these payments.
It is urged that re-enactment of § 22 (a) without change since the Board of Tax Appeals held punitive damages nontaxable in Highland Farms Corp., 42 B. T. A. 1314, indicates congressional satisfaction with that holding. Re-enactment — particularly without the slightest affirmative indication that Congress ever had the Highland Farms decision before it — is an unreliable indicium at best. Helvering v. Wilshire Oil Co., 308 U. S. 90, 100-101; Koshland v. Helvering, 298 U. S. 441, 447. Moreover, the Commissioner promptly published his nonacquiescence in this portion of the Highland Farms holding [7] and has,[*432] before and since, consistently maintained the position that these receipts are taxable. [8] It therefore cannot be said with certitude that Congress intended to carve an exception out of § 22 (a)’s pervasive coverage. Nor does the 1954 Code’s [9] legislative history, with its reiteration of the proposition that' statutory gross income is “all-inclusive," [10] give support to respondents’ position. The definition of gross income has been simplified, but no effect upon its present broad scope was intended. [11] Certainly punitive damages cannot reasonably be classified as gifts, cf. Commissioner v. Jacobson, 336 U. S. 28, 47-52, nor do they come under any other exemption provision in the Code. We would do violence to the plain meaning of the statute and restrict a clear legislative attempt to[*433] bring the taxing power to bear upon all receipts constitutionally taxable were we to say that the payments in question here are not gross income. See Helvering v. Midland Mutual Life Ins. Co., supra, at 223.
Reversed.
Mr. Justice Douglas dissents. Mr. Justice Harlan took no part in the consideration or decision of this case.53 Stat. 9, 53 Stat. 574, 26 U. S. C. § 22 (a).
For the bases of Glenshaw’s claim for damages from fraud, see Shawkee Manufacturing Co. v. Hartford-Empire Co., 322 U. S. 2701; Hazel-Atlas Glass Co. v. Hartford-Empire Co., 322 U. S. 238.
See Hartford-Empire Co. v. United States, 323 U. S. 386, 324 U. S. 570.
See note 1, supra.
38 Stat. 114,167.
The phrase was derived from Stratton’s Independence, Ltd. v. Howbert, 231 U. S. 399, 415, and Doyle v. Mitchell Bros. Co., 247 U. S. 179, 185, two cases construing the Revenue Act of 1909, 36 Stat. 11, 112. Both taxpayers were “wasting asset” corporations, one being engaged in mining, the other in lumbering operations. The definition was applied by the Court to demonstrate a distinction between a return on capital and “a mere conversion of capital assets.” Doyle v. Mitchell Bros. Co., supra, at 184. The question raised by the instant case is clearly distinguishable.
1941-1 Cum. Bull. 16.
The long history of departmental rulings holding personal injury recoveries nontaxable on the theory that they roughly correspond to a return of capital cannot support exemption of punitive damages following injury to property. See 2 Cum. Bull. 71; 1-1 Cum. Bull. 92, 93; VII-2 Cum. Bull. 123; 1954-1 Cum. Bull. 179, 180. Damages for personal injury are by definition compensatory only. Punitive damages, on the other hand, cannot be considered a restoration of capital for taxation purposes.
68A Stat. 3 et seq. Section 61 (a) of the Internal Revenue Code of 1954, 68A Stat. 17, is the successor to § 22 (a) of the 1939 Code.
H. R. Rep. No. 1337, 83d Cong., 2d Sess. a18; S. Rep. No. 1622, 83d Cong., 2d Sess. 168.
In discussing § 61 (a) of the 1954 Code, the House Report states:
“This section corresponds to section 22 (a) of the 1939 Code. While the language in existing section 22 (a) has been simplified, the all-inclusive nature of statutory gross income has not been affected thereby. Section 61 (a) is as broad in scope as section 22 (a).
“Section 61 (a) provides that gross income includes ‘all income from whatever source derived.’ This definition is based upon the 16th Amendment and the word ‘income’ is used in its constitutional sense.” H. R. Rep. No. 1337, supra, note 10, at a18.
A virtually identical statement appears in S. Rep. No. 1622, supra, note 10, at 168.