Hedrick v. Commissioner of Internal Revenue
| Decision Date | 15 March 1946 |
| Docket Number | No. 134.,134. |
| Parties | HEDRICK v. COMMISSIONER OF INTERNAL REVENUE. |
| Court | U.S. Court of Appeals — Second Circuit |
Jeremiah F. Cross, of New York City, for petitioner.
Sewall Key, Acting Asst. Atty. Gen., and A. F. Prescott and Louise Foster, Spec. Assts. to Atty. Gen., for respondent.
Before L. HAND, CHASE, and FRANK, Circuit Judges.
The petitioner is a former employee of the New York Telephone Company who was in 1941 retired from active service pursuant to a notice he received on or about June 10th of that year and who unsuccessfully sought reinstatement to active duty. When he was retired there was, and for some time had been, in effect a pension plan set up by the company under which he was entitled to receive retirement pay and he was given a blank to use in applying for it. Fearing, however, that being a pensioner might make it more difficult to obtain employment elsewhere, he refused to sign the application and told one of the officials of the company that he would not accept a pension. Nevertheless the company sent him checks equal to his full pay for three months after he ceased to be on active duty, this being what he was entitled to receive in accordance with the provisions of the plan while he was on so-called "pre-retirement leave." These checks, amounting to six hundred and three dollars, are all that are involved in this controversy. After they were received by the petitioner he neither cashed them nor returned them. He testified in the Tax Court that some of them were still in his possession but he did not know how many he had or what had become of the others. They were all drawn on a bank which held funds for their payment and which acted as the agent of the company in making payments under the pension plan.
The deficiency was determined by the Commissioner by including in petitioner's gross income for 1941 the total amount for which these checks were drawn. The Tax Court redetermined the deficiency in the same way.
We take it for granted that the petitioner could have cashed all the checks which he received and used the proceeds as he saw fit. That being so, decision should turn upon whether such a receipt of the checks which were sent to him contrary to his wishes is a constructive receipt of income by him. We think it is. The checks were sent in payment of a matured obligation of the company to pay him the retirement benefits which were a concomitant of the job he held. Although he had not fulfilled a procedural condition precedent in making application for them, that requirement could be waived by the company and...
To continue reading
Request your trial
-
United States v. Hancock Bank
...S.Ct. 336, 74 L.Ed. 916 (1930); Llewellyn v. Commissioner of Internal Revenue, 295 F.2d 649 (7th Cir. 1961); Hedrick v. Commissioner of Internal Revenue, 154 F.2d 90 (2d Cir. 1946).4 Although Humble undoubtedly placed an obstacle in the trustee's path to receiving the funds by placing them ......
-
United States v. Coblentz, 349
...denied, 338 U.S. 821, 70 S.Ct. 65, 94 L.Ed. 498 (1949); Ross v. Commissioner, 169 F.2d 483, 490 (1st Cir. 1948); Hedrick v. Commissioner, 154 F.2d 90, 91 (2d Cir. 1946), cert. denied, 329 U.S. 719, 67 S.Ct. 53, 91 L.Ed. 623 (1946). Treas.Reg. § 1.451-2. See generally 2 J. Mertens, Law of Fe......
-
Anderson v. Bowers
...Helvering, 291 U.S. 193, 54 S.Ct. 356, 78 L.Ed. 725; Saunders v. Commissioner, 10 Cir., 101 F.2d 407." See also Hedrick v. Commissioner of Internal Revenue, 2 Cir., 154 F.2d 90, and Saunders v. Commissioner of Internal Revenue, 10 Cir., 101 F.2d When the check for the executrix' commissions......
- Hawkins v. Frick-Reid Supply Corporation