64 T.C. 771 (1975), 760-72, Weinberg v. Commissioner of Internal Revenue
|Docket Nº:||No 760-72.|
|Citation:||64 T.C. 771|
|Opinion Judge:||SIMPSON, Judge:|
|Party Name:||STEVEN MICHAEL WEINBERG AND COURTNEY PLUMMER WEINBERG, PETITIONERS v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT|
|Attorney:||Cyril David Kasmir, for the petitioners. Kemble White, for the respondent.|
|Case Date:||August 04, 1975|
|Court:||United States Tax Court|
P performed services as an intern and resident at three hospitals. He received monthly payments from the hospital where he was working at the time. He was required to remain at the hospital at meal times and was given a monthly cash meal allowance, which he used to purchase meals at the hospital cafeteria. Held, such payments do not constitute a scholarship or fellowship grant excludable under sec. 117, I.R.C. 1954; held, further, the cash allowance for food was compensation and not excludable under sec. 119, I.R.C. 1954.
The Commissioner determined the following deficiencies in the petitioners' Federal income taxes:
Year Petitioner Amount
1968 Steven Michael Weinberg $2,376.51
1969 Steven Michael Weinberg 417.78
1969 Courtney Plummer Weinberg 417.78
The issues to be decided are: (1) Whether any of the amounts paid to the petitioner Steven Michael Weinberg in 1968 and 1969 by several hospitals in which he served as an intern and resident was excludable from gross income as a scholarship or fellowship grant under section 117 of the Internal Revenue Code of 1954;  and (2) whether additional cash allowances paid to him for meals and lodging by Parkland Memorial Hospital during 1968 and 1969 were excludable from income under section 199, relating to meals or lodging furnished for the convenience of the employer. FINDINGS OF FACT Some of the facts have been stipulated, and those facts are so found. The petitioners, Dr. Steven Michael and Courtney Plummer Weinberg, were married in 1969 and maintained their residence in Dallas, Tex., at the time of filing their petition herein. He filed his individual Federal income tax return for the year 1968 with the District Director of Internal Revenue, Dallas, Tex. They filed individual returns for 1969 with the District Director of Internal Revenue, Dallas, Tex. Dr. Weinberg will sometimes be referred to as the petitioner. Dr. Weinberg was graduated from the Iowa Medical School in June 1967. He received his license to practice medicine in Iowa in 1968 and his license to practice in Texas in 1970. Page 773 From July 1, 1967, through June 30, 1968, Dr. Weinberg was a rotating intern at the University of Texas Southwestern Medical School (the university) in Dallas, Tex. From July 1, 1968, through June 30, 1972, he was a resident at the university specializing in general surgery. The university coordinated internship and residency training programs with hospitals in the Dallas area. Interns and residents were often rotated through several hospitals. Dr. Weinberg worked chiefly at Parkland Memorial Hospital (Parkland), which is the primary teaching facility of the university. He also worked at Presbyterian Hospital (Presbyterian) and Veterans Administration Hospital (Veterans) in Dallas. The internship and residency were required for Dr. Weinberg to be licensed to practice medicine and certified by the American Board of Surgery. Parkland was one of two hospitals operated by the Dallas County Hospital District (the district). The permanent staff of the district was composed of the members of the faculty of the university. The chairman of a particular service within the university served as the chairman of that service in the district and directed, supervised, and controlled that service of the district. Patients were admitted to the district hospitals on the basis of medical need. After admission, they were assigned to medical teams made up of faculty members, residents, interns, and students, on the basis of the patient's particular medical problem. The district provided medical care for indigent citizens of Dallas County and a limited number of paying patients. The intern and residency program was established by the district to provide ‘ education for graduate medical students, and (to) avail itself of the services of these physicians for the care of the indigent sick.’ While he was an intern in 1968, Dr. Weinberg spent time on the medical service, the psychiatric service, the pediatric service, and the obstetrical and gynecological service. During this time, he examined patients, participated in evaluations and in taking histories, proposed diagnoses, assisted in giving treatment, and participated in making rounds and in deciding which drugs or medications to prescribe. He did not perform or assist in surgery during this time. Dr. Weinberg had no primary or direct responsibility for the care or treatment of patients. He was under close and immediate supervision at all times and could not prescribe or administer any treatment on his own initiative. His Page 774 performance was supervised and evaluated by the faculty of the university. As an intern, Dr. Weinberg attended lectures and conferences daily. He also attended seminars which were coordinated into the internship training program. On July 1, 1968, Dr. Weinberg started a 4-year surgical residency program with the university. During this program, he spent time on general surgery service, neurosurgery service, thoracic surgery service, and other surgical subspecialties. During his first year of residency, Dr. Weinberg examined patients, participated in evaluations and in taking patient histories, proposed diagnoses, assisted in giving treatment, made rounds, prescribed drugs and medications, and assisted in the performance of surgery. He participated in approximately 500 operations in his first year. He did not...
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