Adams v. United States

Faneuil Adams (plaintiff), CEO of Mobil in Japan, lived in a company-provided residence specifically designed for business and social functions. On his taxes Adams reported the average U.S. rental rate rather than the fair market rental value of the Japanese home, producing a tax deficiency. He paid the deficiency and sued the United States (defendant) to recover it.

Whether employer-provided housing is excludable from a taxpayer's gross income where the statutory conditions for exclusion are met.