Old Colony Trust Co. v. Commissioner
United States Supreme Court
279 U.S. 716 (1929)
Relevant factsFree
American Woolen Company, under a 1916 board resolution, paid the personal federal income taxes owed by its president, Wood (defendant), for 1918 and 1919, amounts exceeding $680,000 and $350,000 respectively; the Board of Tax Appeals found these tax payments constituted additional taxable income to Wood.
IssueFree
Whether an employer's payment of an employee's income taxes constitutes taxable gain to the employee.