Clark v. Commissioner
United States Board of Tax Appeals
40 B.T.A. 333 (1939)
Relevant factsFree
Clark (plaintiff) paid over $30,000 in 1932 income taxes after his tax counsel mistakenly advised him to file jointly with his wife; filing separately would have cost $19,941.10 less. The tax counsel personally paid Clark $19,941.10 to cover that difference. The IRS (defendant) then taxed that reimbursement as 1934 income, and Clark appealed to the Board of Tax Appeals.
IssueFree
Whether recovery of a loss of capital that is not derived from capital or labor is income.