Commissioner v. Glenshaw Glass Co.
United States Supreme Court
348 U.S. 426 (1955)
Relevant factsFree
Glenshaw Glass (defendant) received punitive damages settling a fraud and business-injury claim, and Goldman Theatres (defendant) received treble damages after winning an antitrust suit; both companies reported only their actual compensatory losses as income and excluded the punitive portion, and the Tax Court agreed the punitive damages weren't taxable, a ruling the court of appeals affirmed in both consolidated cases.
IssueFree
Whether punitive damages are taxable as gross income.