240 F.Supp. 738 (D.Minn. 1965), 3-64-Civ. 79, Halsor v. Lethert

Docket Nº:3-64-Civ. 79.
Citation:240 F.Supp. 738
Party Name:David R. HALSOR and Patricia A. Halsor, Plaintiffs, v. George O. LETHERT, District Director of Internal Revenue, Defendant.
Court:United States District Courts, 8th Circuit, District of Minnesota

Page 738

240 F.Supp. 738 (D.Minn. 1965)

David R. HALSOR and Patricia A. Halsor, Plaintiffs,

v.

George O. LETHERT, District Director of Internal Revenue, Defendant.

No. 3-64-Civ. 79.

United States District Court, D. Minnesota, Third Division.

1965.

Thomas M. Vogt and David E. Kelby, of Felhaber, Larson & Fenlon, St. Paul, Minn., for plaintiff taxpayers.

John G. Milano and Daniel Dinan, Tax Division, Department of Justice, Washington, D.C., for defendant.

LARSON, District Judge.

The above entitled matter is an action by plaintiffs for the recovery of income taxes said to be wrongfully assessed by defendant in the calendar years 1960 and 1961.

The Court heard testimony on January 20, 1965. The Court has considered the testimony and the arguments and briefs of counsel.

The only issue is whether amounts paid to plaintiff David R. Halsor (taxpayer) by the Air Line Pilots Association (ALPA) during 1960 and 1961 were excludable from gross income as gifts under 26 U.S.C. § 102. 1

Prior law makes it clear that whether particular payments are gifts or income depends on the facts of each case. Commissioner of Internal Revenue v. Duberstein, 363 U.S. 278, 80 S.Ct. 1190, 4 L.Ed.2d 1218 (1960) and United States v. Kaiser, 363 U.S. 299, 80 S.Ct. 1204, 4 L.Ed.2d 1233 (1960). But Duberstein points out that the critical consideration is always 'the intention with which payment, however voluntary, has been made.' 2

During 1960 Northwest Airlines, Inc., (the Company) began to acquire pure

Page 739

jet aircraft. There was a dispute at the time between flight engineers, represented by the International Association of Machinists (IAM), and pilots, represented by ALPA, as to what the crew complement on a jet aircraft should be.

As a result of this dispute the flight engineers in October, 1960, refused to fly on pure jet aircraft and these twenty planes had to be grounded. About 140 pilots, including the taxpayer, were laid off during the next six weeks. 3 The taxpayer did not return to work until June, 1961.

Taxpayer and other pilots discussed their need for financial aid with local officers of ALPA and on November 16, 1960, the ALPA Board of Directors adopted the following resolution:

'WHEREAS there exists on Northwest Airlines a dispute between the carrier and another labor organization arising from the implementation of ALPA Policy by the...

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5 practice notes
  • 637 F.Supp. 624 (E.D.N.C. 1986), 84-1124-CIV-5, Gregory v. United States
    • United States
    • Federal Cases United States District Courts 4th Circuit Eastern District of North Carolina
    • May 29, 1986
    ...F.2d 668 (9th Cir.1966); McConnell v. United States, 70-2 U.S.T.C. par. 9467 (E.D.Tenn.1970); Halsor v. Director of Internal Revenue, 240 F.Supp. 738 (D.Minn.1965); Godwin v. United States, 15 A.F.T.R.2d 258 (W.D.Tenn.1964); Placko v. Commissioner, 74 T.C. 452 (1980); Colwell v. Commissione......
  • 47 T.C. 399 (1967), 3947-62, Brown v. C. I. R.
    • United States
    • Federal Cases United States Tax Court
    • January 18, 1967
    ...United States (C.A. 9) 368 F.2d 668, affirming (D. Oreg.) . . . F.Supp. . . . ; John N. Hagar, supra; and Halsor v. Lethert, (D. Minn.) 240 F.Supp. 738, in which it was held that under the circumstances there involved strike benefits constituted taxable income. In United States v. Kaiser, 3......
  • 74 T.C. 452 (1980), 8612-78, Placko v. C.I.R.
    • United States
    • Federal Cases United States Tax Court
    • May 28, 1980
    ...union and another union have been found to be includable in the pilot's gross income rather than excludable as gifts. Halsor v. Lethert, 240 F.Supp. 738 (D. Minn. 1965). Whether a monetary payment is treated as a gift for tax purposes is an issue of fact for determination on a case by case ......
  • 64 T.C. 584 (1975), 342-73, Colwell v. Commissioner of Internal Revenue
    • United States
    • Federal Cases United States Tax Court
    • July 17, 1975
    ...Memo. 1968-18; Godwin v. United States, an unreported case (W.D. Tenn. 1964, 15 AFTR 2d 258, 65-1 USTC par. 9121); Halsor v. Lethert, 240 F.Supp. 738 (D. Minn....
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5 cases
  • 637 F.Supp. 624 (E.D.N.C. 1986), 84-1124-CIV-5, Gregory v. United States
    • United States
    • Federal Cases United States District Courts 4th Circuit Eastern District of North Carolina
    • May 29, 1986
    ...F.2d 668 (9th Cir.1966); McConnell v. United States, 70-2 U.S.T.C. par. 9467 (E.D.Tenn.1970); Halsor v. Director of Internal Revenue, 240 F.Supp. 738 (D.Minn.1965); Godwin v. United States, 15 A.F.T.R.2d 258 (W.D.Tenn.1964); Placko v. Commissioner, 74 T.C. 452 (1980); Colwell v. Commissione......
  • 47 T.C. 399 (1967), 3947-62, Brown v. C. I. R.
    • United States
    • Federal Cases United States Tax Court
    • January 18, 1967
    ...United States (C.A. 9) 368 F.2d 668, affirming (D. Oreg.) . . . F.Supp. . . . ; John N. Hagar, supra; and Halsor v. Lethert, (D. Minn.) 240 F.Supp. 738, in which it was held that under the circumstances there involved strike benefits constituted taxable income. In United States v. Kaiser, 3......
  • 74 T.C. 452 (1980), 8612-78, Placko v. C.I.R.
    • United States
    • Federal Cases United States Tax Court
    • May 28, 1980
    ...union and another union have been found to be includable in the pilot's gross income rather than excludable as gifts. Halsor v. Lethert, 240 F.Supp. 738 (D. Minn. 1965). Whether a monetary payment is treated as a gift for tax purposes is an issue of fact for determination on a case by case ......
  • 64 T.C. 584 (1975), 342-73, Colwell v. Commissioner of Internal Revenue
    • United States
    • Federal Cases United States Tax Court
    • July 17, 1975
    ...Memo. 1968-18; Godwin v. United States, an unreported case (W.D. Tenn. 1964, 15 AFTR 2d 258, 65-1 USTC par. 9121); Halsor v. Lethert, 240 F.Supp. 738 (D. Minn....
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