Lucas v. Earl
United States Supreme Court
281 U.S. 111 (1930)
Relevant factsFree
Earl (plaintiff) and his wife had agreed in 1901 to hold as joint tenants, with right of survivorship, any income earned by either of them, effectively granting his wife half his earnings; the Commissioner (defendant) nonetheless determined Earl's full earnings were taxable to him alone, a position the Board of Tax Appeals upheld before the Court of Appeals reversed.
IssueFree
Whether a taxpayer may anticipatorily divert earned income to another individual so as to avoid tax liability.