Poyner v. Commissioner
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Poyner v. Commissioner 301 F.2d 287 (4th Cir.1962)[1] is a United States tax law case that discusses whether "special death benefits" paid to an employee's widow are exempt from taxes as a gift under §102(a).
Poyner v. Commissioner | |
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Court | United States Court of Appeals for the Fourth Circuit |
Full case name | Ernest L. Poyner, et al v. Commissioner of Internal Revenue |
Argued | November 21, 1961 |
Decided | March 21, 1962 |
Citation(s) | 301 F.2d 287 (4th Cir. 1962) 62-1 USTC (CCH) ¶ 9387 |
Court membership | |
Judge(s) sitting | Simon Sobeloff, Morris Ames Soper, J. Spencer Bell |
Case opinions | |
Majority | Sobeloff, joined by Soper, Bell |
Laws applied | |
Internal Revenue Code | |
Keywords | |
It produces five factors as a pertinent test:
(1) whether the payments were made to the spouse of the deceased shareholder, not to his estate;
(2) whether the payor had been under no obligation to make the payments and had, in fact, decided on previous occasions not to make payments to persons qualified;
(3) whether the company derived benefit of an economic nature from the payments;
(4) whether the recipient had ever performed any services for the company;
(5) whether the services of the deceased employee had been fully compensated during his lifetime.