Alden D. STANTON and Louise M. Stanton, Appellees, v. U.S., Appellant
U.S. Court of Appeals, Second Circuit,
District Court reversed.
Decision for Government.
4 AFTR 2d 5071, 268 F2d 727, 59-2 USTC P 9562.
The plaintiffs sue to secure a refund of $15,056.29 representing income taxes (principal
and interest) paid for the year 1943, which they allege were illegally collected.
In 1933 or 1934 the plaintiff, Mr. Stanton, had been retained to manage the real property
of Trinity Church in New York. Trinity Operating Company, Inc., was organized to take
over this work and Mr. Stanton became its president and a member of its board of
In November, 1943, he voluntarily resigned as Comptroller, and as president and director
of the Operating Company, and a few days previously the Operating Company had
passed a resolution that "in appreciation of the services rendered by Mr. Stanton as
Manager of the Estate and Comptroller of the Corporation of Trinity Church throughout
nearly ten years, and as President of Trinity Operating Company, Inc., its subsidiary, a
gratuity is hereby awarded to him of Twenty Thousand Dollars *** provided that, with
the discontinuance of his services, the Corporation of Trinity Church is released from all
rights and claims to pension and retirement benefits not already accrued up to November
The Commissioner of Internal Revenue decided that it was income and assessed a deficiency for
the year 1943 in the amount of $10,629.57. The plaintiffs eventually paid this with accumulated
interest, $15,066.29, and filed a claim for refund upon whose denial they filed this action; and
after a trial without a jury Judge Byers granted judgment in their favor.