Source: https://www.law.cornell.edu/supremecourt/text/274/259
Timestamp: 2019-04-22 06:34:37+00:00

Document:
The defendant in error was convicted of willfully refusing to make a return of his net income as required by the Revenue Act of 1921, Act Nov. 23, 1921, c. 136, §§ 223(a), 253 ( 42 Stat. 227, 250, 268 (Comp. St. §§ 6336 1/8 kk, 6336 1/8 v)). The judgment was reversed by the Circuit Court of Appeals. Sullivan v. United States, 15 F.(2d) 809. A writ of certiorari was granted by this Court.
The Court below was right in holding that the defendant's gains were subject to the tax. By section 213(a), being Comp. St. § 6336 1/8 ff, gross income includes 'gains, profits, and income derived from * * * the transaction of any business carried on for gain or profit, or gains or profits and income derived from any source whatever.' These words are also those of the earlier Act of October 3, 1913, c. 16, section II, B ( 38 Stat. 114, 167), except that the word 'lawful' is omitted before 'business' in the passage just quoted. By section 600 ( 42 Stat. 285 (Comp. St. § 5986e)), and by another Act approved on the same day Congress applied other tax laws to this forbidden traffic. Act Nov. 23, 1921, c. 134, § 5 ( 42 Stat. 222, 223 (Comp. St. §§ 10138 4/5 c-10138 1/5 e)). United States v. One Ford Coupe , 272 U. S. 321, 327, 47 S. Ct. 154, 47 A. L. R. 1025; 1 United States v. Stafoff, 260 U. S. 477, 480, 43 S. Ct. 197, 67 L. Ed. 358. We see no reason to doubt the interpretation of the Act, or any reason why the fact that a business is unlawful should exempt it from paying the taxes that if lawful it would have to pay.
COMMISSIONER OF INTERNAL REVENUE v. WILCOX et al.
COMMISSIONER OF INTERNAL REVENUE, Petitioner, v. FIRST SECURITY BANK OF UTAH, N.A., et al.

References: v. 
 § 6336
 § 5986
 § 5
 v. 
 v. 
 v. 
 v.