Helvering v. Therrell, 303 U.S. 218 (1938)

Helvering v. Therrell


No. 128


Argued December 17, 1937
Decided February 28, 1938 *
303 U.S. 218

CERTIORARI TO THE CIRCUIT COURT OF APPEALS
FOR THE FIFTH CIRCUIT

Syllabus

The compensation received (1) by a liquidator appointed by the State Comptroller to wind up insolvent banks pursuant to Florida statutes; (2) by legal counsel employed by the Insurance Department of New York for services in liquidating insolvent insurance companies taken over by the state Superintendent of Insurance, pursuant to New York statutes; (3) by an attorney in the Department of Justice of Pennsylvania assigned by the Attorney General for legal work relating to winding up of insolvent banks taken over by the state Secretary of Banking pursuant to Pennsylvania statutes, held (p. 222) subject to income taxation by the Federal Government, it appearing:

1. That the compensation in each instance was paid from the assets of the liquidating corporation, not from funds belonging to the State;

2. That no one of the taxpayers was an officer of the State in the strict sense of that term;

3. That the businesses about which they were employed were not utilized by the States in the discharge of their essential governmental duties;

4. That the corporations were private enterprises, and their funds private property.

88 F.2d 869 and id. 873 reversed.

89 id. 699 affirmed.

92 id. 150 reversed.

Certiorari to review decisions of Circuit Courts of Appeals in four cases on appeals from decisions of the Board of Tax Appeals sustaining income tax assessments. In Nos. 128, 129 and 597 (34 B.T.A. 956) the Board’s ruling was reversed by the lower court; in No. 287, the Board’s ruling, 34 B.T.A. 963, was affirmed.