kelly legner duberstein supreme court brief

kelly legner duberstein supreme court brief - COMMISSIONER...

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COMMISSIONER of Internal Revenue, Petitioner, v. Mose DUBERSTEIN, et al. Code Sec(s): Court Name: U.S. Supreme Court, Docket No.: Nos. 376 and 546, Date Decided: 06/13/1960 Prior History: [Duberstein; No. 376] 6 Cir., 3 AFTR 2d 1128, 265 F.2d 28, which had reversed ¶ 58,004 P-H Memo TC, reversed. Disposition: Decision for Government. Prior History: [Stanton; No. 546] 2 Cir., 4 AFTR 2d 5071, 268 F.2d 727, which had reversed the District Court, vacated and remanded to the District Court. Disposition: Decision for taxpayer. Cites: 5 AFTR 2d 1626, 363 US 278, 80 S Ct 1190, 4 L Ed 2d 1218, 60-2 USTC P 9515. Issues: Whether a specific transfer to a taxpayer in fact amounted to a "gift" to him within the meaning of the statute. The importance to decision of the facts of the cases requires that we state them in some detail. Facts Duberstein was President of Duberstein Iron and Metal Company of Dayton, Ohio, and Morris Berman was President of Mohawk Metal Corporation of New York. These two corporations had done business with each other in the buying and selling of various metals over a period of years. Duberstein and Berman were personally acquainted. At some time in the year 1951, Berman called Duberstein and told him that some of the information given to Berman was so helpful that he felt he wanted to give Duberstein a present. He stated that he had a Cadillac car for Duberstein and requested him to come to New York to receive it as a gift. At that time, Duberstein advised Berman that he did not feel Berman or the company owed him anything, that he had not expected anything for the information given to Berman, and had not intended to be compensated.
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No further conversations were had between Duberstein and Berman, after receipt of the car, concerning the question of whether it was a gift or was taxable compensation. It was undisputed that Duberstein was not an employee of the Mohawk Metal Corporation and that there was no understanding or agreement between him and Mohawk Metal Corporation that he was to be compensated in any way for information given Berman. In 1954, an agent of the Internal Revenue Department got in touch with Duberstein and stated his intention to charge Duberstein with receipt of income in 1951 in the amount of the fair market value of the Cadillac. Mohawk Metal Corporation had deducted as expense the value of the Cadillac car on its tax return for 1951, classifying the item as a "finder's fee" paid to Duberstein. Rulings The Commissioner asserted a deficiency for the car's value against him, and in proceedings to review the deficiency the Tax Court affirmed the Commissioner's determination. It said that "The record is significantly barren of evidence revealing any intention on the part of the payor to make a gift. . .. The only justifiable inference is that the automobile was intended by the payor to be remuneration for services rendered to it by Duberstein." The Court of Appeals for the Sixth Circuit reversed. [65 F.2d 28 3 AFTR 2d 1128]
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kelly legner duberstein supreme court brief - COMMISSIONER...

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